Customer Churn Prediction How to Use Churn Prediction and Analysis to Increa | Page 6

SEGMENT PEOPLE IN ORDER TO FOCUS ON
RETAINING THE RIGHT CUSTOMERS
Using data analytics to segment people
into different groups means you can
identify how each segment engages with
your brand and product. This allows you to
look at each subgroup and draw insights,
followed
by
adopting
different
communication and servicing strategies
to increase retention for your most
desired customers.
Analyze data such as your customer's
demographics,
lifestyle,
products
purchased, the frequency of purchase and
its value. This way, you’ll discover which
type of customers are driving the most
revenue. Some generate too much costs
to deliver revenue. Then you can decide
whether you want to focus your efforts on
them.
Understanding the differences between
various types of customers,  in some
cases can make or break a business,
especially if you’re just starting out.
Knowing customer's value is crucial to be
able to make critical decisions.
You can segment clients by historical
value, lifetime value, worth over the next
year or the average customer value by
segment. Using the right segmentation
will allow you to create highly targeted
product recommendation offers.
Segment your customers to offer relevant
discounts for different channels (in-store,
online, mobile). Mix it up a bit - each
customer doesn’t have to receive the
same offer.
Another useful way to use segmentation is
to monitor the time-sensitivity and
seasonality of your promotional codes. By
monitoring sales data, you can see
whether these codes are redeemed more
often in the morning or afternoons or
perhaps
straight
after
sales-
communication.
The more you know about what a
demographic group responds to, the
more you can focus on taking the right
actions.
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