Propensity
Propensity
Response Prediction
Acquiring a new customer costs much more than retaining an existing one. Satisfying and protecting the customer base is essential to the profitability of a business, but it is not always easy to manage. In fact, competitor acquisition campaigns are often aggressive and, having a very large customer base, it is complex to keep satisfaction levels monitored and recognize the risk of churn. At the same time, it is necessary to plan customer retention campaigns in a targeted way that optimizes the use of time and resources.
- Description and benefits
- Application examples
Propensity/Response Prediction allows to identify which users are at the highest risk of churn and where it is useful and necessary to act promptly with prevention actions. Our solution can simulate the effectiveness of actions in terms of positive response from the customer and simplify the work of customer care.
High precision
Both in data analysis and in campaign forecasting
Decreased churn rate
Thanks to the rapid identification of customers at higher risk of churn
More effective retention campaigns
Thanks to the simplification of customer care effort through more accurate and specific information
Sectors
Application examples of Response Prediction
Products
Simulating the customer base response to a new product to identify those who will respond positively
Utilities
Predicting customers with the highest risk of churn and simulating different prevention or win-back campaigns to identify the most suitable ones for each customer
Services
In the nonprofit sector, predicting the donors with the highest risk of churn and simulating different upgrade campaigns to identify the most promising ones for each customer
Deepening
Operating logic
Our solution is based on a machine learning algorithm that, starting from the data that tells the story of each customer (e.g. past purchases, payment times and methods, interactions on different touchpoints, outcome of past campaigns, etc.), allows to predict the probability of a customer leaving the company within a certain period of time and to simulate the effectiveness of a given campaign.
Success story: application of response prediction solution
The solution for Mission Bambini
Response Prediction helps the nonprofit organization Mission Bambini to predict the outcome of its campaigns with accuracy.
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