Software

The top 20% of customers generate 80% of your revenue. Did you know that more than half of these could potentially be part of the top 20% of your competitor�s portfolio? How does one retain customers and prevent them from shifting loyalties towards competitors?

This is the critical issue being faced by marketing managers across companies. In years past stickiness came naturally as there were fewer players, lesser product diversity and consistent and regulated pricing across companies and products. Today, it has become a buyer�s market; the customer has numerous choices and is constantly lured by competitors through a combination of convenience, pricing, quality and product features. Experts often comment that it is five times more profitable to spend marketing dollars to retain existing customers than it is to acquire customers.

In such a scenario, it is paramount that companies consider proactive customer retention as a mainstream activity which requires the same level of attention as other marketing and sales strategies. The drivers of customer retention involve nurturing a customer to continue being loyal, enhancing offerings to match the their growing needs, ensuring higher share of wallet spend, detecting early warning signals which indicate a propensity to defect and taking proactive measures to retain the customer. Leading analytics outsourcing providers such as Fractal Analytics have helped companies bring down attrition management costs by up to 40% by deploying predictive modeling techniques.

Voluntary attrition is often preceded by periods of inconsistent activity/inactivity. Thus it is essential to keep track of inconsistent especially declining activity of customers. Sophisticated customer retention solutions involve using a combination of behavioral segmentation and predictive modeling techniques to identify customers at risk of attrition. Advanced segmentation techniques are used to track customer behavioral patterns over a period of time. Warning triggers are generated to alert inactivity and impending attrition. Proactive retention measures can then be undertaken on these customers to prevent their attrition. Attrition management solutions can positively impact the profitability of companies across industries such as financial services, insurance, telecom and retail. Several leading global financial institutions, especially credit card issuers have deployed predictive models to reduce attrition by up to 30 to 100 basis points. Customers thus retained are likely to generate sustained incremental revenue resulting in higher overall portfolio profitability. They also become potential targets for cost effective cross--sell and up-sell which further enhances the revenue as well as strengthen the relationship between the customer and the institution. Long term relationship with customers also helps understand their needs better, increases customer satisfaction levels and enhances the overall brand equity of the institution.

About Fractal Analytics

Fractal Analytics is a pioneer in analytics outsourcing and provides solutions in CRM Analytics (Activation linked acquisition, Cross-sell, Lifetime value, Retention, Value migration and Trip wire mechanisms), Marketing ROI Analysis (Marketing mix modeling, Promotions analysis, Price analytics, Media mix analytics), Business Analysis (Agent defection analysis, Performance analysis, Reporting and insight generation), Consumer Insights (Consumer Segmentation, Driver�s Analysis & Structural Equation Modeling, Initiative and Launch Assessment and Panel Data Analysis) and Risk Analytics (Loss modeling, Pricing, Inspection of risk modeling and Claims analysis).

For more information, please feel free to or mail us at sales@fractalanalytics.com or call us at +1 201 633 8728.

Website: www.fractalanalytics.com