July 11, 2022
July 11, 2022
Concerned about Churn?
Use Machine Learning to Keep Your Best Clients
Losing clients? It’s costly. Though estimates vary by industry and methodology, courting a new client can be 5 to 25 times more expensive than building on existing relationships.
“You’d like to have 100 percent of customers stay 100 percent of the time,” notes Harvard Business School Professor Sunil Gupta, “but that’s just not the case.” However, there’s hope: Even a modest increase of 5% in client retention can increase profits by 25% to 95%, according to researcher Frederick Reichold of Bain & Company.
Most companies grasp the importance of client retention for revenue. However, missteps are common:
- Relying on inefficient and fallible manual tactics to identify at-risk clients
- Lacking a clear sense of which clients are highest value and/or most likely to churn
- Underestimating the heated competition for high-value clients
- Taking a reactive stance, intervening only when the client already has one foot out the door
- Failing to accurately or adequately target outreach
- Offering blanket incentives or promotions that put a dent in profits from already-loyal clients
How Evolutio Helps Clients with Churn and Retention
In partnership with your company, Evolutio will help with churn in three steps:
- Custom Modeling: develop a customized machine learning model from your data that identifies the likelihood of, and the reasons for, your clients’ churn
- Relevant Results: deliver insight through an interactive visualization that’s relevant to all stakeholders
- Targeted Action: drive targeted action by showing you how to retain your high-value, high-risk clients
Our intelligent automation tools, coupled with data you’re already collecting, transform the fear of client attrition into a focused and potent retention strategy. Human time and talent is valuable, and machine learning insights empower everyone – from technicians to account managers – to stop simply wondering who might be dissatisfied and why. Instead, equipped with specific and actionable information, your team can maximize their time and move swiftly to satisfy key clients.
The three step Client Churn Solution framework is modeled in the dashboards below.
1. Custom Modeling
Evolutio combines business acumen and machine learning expertise to develop targeted machine learning models with real business impact. Beyond developing your churn likelihood model, Evolutio will design an interactive visualization that allows a wide range of stakeholders to access these insights and take action.
In the solution below, we stack-rank clients by their value to the business along with their likelihood of churn. For example, account manager Amber Webb, given this model, can see that her highest value client Tesla, is currently at a relatively low risk of churn (13%, in the light green or “Low” category). Randall Gray, on the other hand, can see that Mastercard is quite vulnerable (20%, or “High”).
2. Relevant Results
We provide navigation tools to make the data relevant for all stakeholders. With just a few clicks, account manager Amber Webb can view her accounts in the “Major Clients” category with a “High” likelihood of churn.
Amber now has a focused list of her highest value clients in need of attention. But what actions can she take to reduce their likelihood of churn?
3. Targeted Action
Evolutio’s solution provides insight on why a particular client is likely to churn, equipping Amber to intervene quickly and effectively. Selecting a client reveals the top three churn risk factors. Armed with this information, Amber can take targeted action – reaching out to the client about contracts, pricing, and cross-selling opportunities – to retain her highest-value client.
Remember, Churn is Not Inevitable
Is machine learning powerful? Absolutely. But even the most brilliant machine learning model depends on human engagement to focus it and make it actionable. You can trust Evolutio’s team to come alongside you in constructing, applying, and interpreting a machine learning model that will offer immediate insights as well as long-term guidance in client satisfaction and retention.
Remember, churn is not inevitable. It’s gradual and can be disrupted. With Evolutio’s Client Churn Solution, you can combat churn with fresh insight and agility. You already know your clients matter to you. With Evolutio and a platform like DataRobot, know more about what matters to them.
Want to learn more? Visit our Contact Page to see how we can help you make an impact on your client churn efforts.