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Cu s t o m e r Ret e n t i o n an d Wi n - Bac k
St r a t e g i e s u s i n g A n a l y t i c s f o r Re t a i l
Sol u t i o n   Over vi e w
The biggest problem faced by Retail Stores providing credit through their
proprietary cards is around customer retention. The cost of acquiring a
new customer is far higher as compared to retaining and winning back an
existing customer.
The challenges currently faced are around knowing which customer
would churn and what would be the preventive strategies to prevent the
customers from churning.
The challenge also lies around whether all customers who have
churned should be won back or organizations should focus only the
most valuable customers.
Business Problem - What are the Retention Strategies Currently in place?


Do we know from where the customer came to us?

Do we know what are the reasons why the customer came to us?

Do we know when the customer would close the relationship with us?

Do we know the customer segments with their preferred products?

How do we bundle Products/Services to maximize sale and reduce churn?

How do we retain the highly profitable customers from going dormant?



Develop Proactive Retention Strategies to Prevent Customer Churn


Differentiate Proactive and Reactive Strategies

Create Time Series trends for customers

Develop Predicted Attrition Probability Treatment Optimization

Conduct Market basket analyses to identify product association

To identify the Credit Card Customers who are likely to become dormant and the most likely reason for dormancy

Identify customer segments with preferred product association



Business Problem - How can we Win-Back the Customers we have Lost?


Do we know who our one-hit customers are?

What are the different Campaigns that can be executed to win-back customer lost?



Develop Win-Back Campaigns based on the insights gathered through Modeling


To create actionable campaigns for multiple segments

Valuable Customer win-back based on Customer Segmentation

Utilize the learning’s from Churn Model Development to pro-actively prevent the top customers from churning

Utilize the learning’s from Dormancy Model Development to pro-actively prevent the most valuable customer from going dormant
Proactive action to reduce dormant bucket inflows



                Customer in Active 30                  Customers in 45-60 days dormancy                 90 + dormant customers re-activation


                    Score with 90+                             Score with 45-60 days                            Score 90 + dormant
                      Dormancy                                 Dormant re-activation                           customer re-activation
                   prediction model                                   model                                            model




                                                                                                               Dormant re-activation
                   Usage campaign                                  Usage campaign
                                                                                                                    campaign




                Focus on customers with                 Focus on customers with low propensity
              high propensity to go dormant                to re-activate and give better offer         Focus on customers with high propensity
                     with better offer                            including customers                        to re-activate & remain active.
                                                                Contact in the active 30




  Peoples movement into dormancy buckets before proactive approach




  With new proactive approach the flow of customers into dormancy should reduce




  Development of models to identify card holders with propensity to go Dormant in future and Reactivation Model for
  Dormant card holders between 90 to 180 days vintage.




Develop Churn Management Strategy (both Proactive and Reactive) resulting in control of customer erosion over a period of time.




               Voluntary
                Closure
                                         Involuntary
                                                                  Silent Attritors
                                           Closure


                                                                                                  Downward          Upward
                                                                                                    Sale              Sale
                                                                                                  Migration         Migration
Our Services
CEQUITY’S services are powered with deep domain expertise and process excellence by adding Intelligence to Information. Our
banking Analytics consultants are capable of generating effective solutions to your business problems and quickly provide you with a
competitive price and turn-around time. Choose from a wide array of reports covering demographic trends, consumer spending
potential, business profiles, consumer segmentation, activity volumes and more.

Our Analytical Consultants are qualified to provide deep insights by objectively analyzing vast amount of customer transactional
lifestyle and secondary data to help make quick business impact. Our consultants have rich experience in key verticals like: financial
services, insurance, mortgage, retail, travel, entertainment & telecommunications.

Our analytics services include:


CEQUITY BIZACTION - Modeling Services

   Insight2Action Acquisition Models             Insight2Action Value-build Models            Insight2Action Retention Models

   Prospect Modeling and Scoring                 Cross-Sell/Up-Sell Analytics                 Churn Prediction
   Lead Scoring and Enhancement                  Lifecycle Profiling                          Attrition Models
   Optimal Contact Strategy Development          Response/Conversion Modeling
   Portfolio Analysis                            CLTV Modeling Segmentation Models


About Cequity

Customer Equity Solutions (Cequity) Pvt. Ltd. is an IT-enabled Customer Experience Management Company which will help
enterprises improve marketing performance and accelerates customer relationships.

We help enterprises by combining data, technology and services to build actionable analytical marketing frameworks, optimize
marketing performance and accelerate real-time customer engagement. Thereby, enabling greater ROI on their marketing
technology investments. Cequity brings a blended perspective which allows companies to bring the power of Marketing automation
technology to business problems. Our services include:

   Customer Management Consulting
                                                                         Managed Campaign Management Services
   Managed Analytics
                                                                         Marketing Operations and Measurement Services
   Marketing Database Solutions
                                                                         Event Driven Marketing Services




Contact us:
                                         Customer Equity Solutions Pvt. Ltd.
INDIA
Mumbai Office:                                                                               USA
                                                                                             Chicago Office:

105-106, 1st Floor, Anand Estate, 189-A, Sane Guruji Marg,                                  626, Grove Street, Evantson, IL 60201
Mahalaxmi, Mumbai-400 011, India
Phone: +91 22 23000133 / 23054039, Fax: +91 22 23053809

                           Website: www.cequitysolutions.com        Email: info@cequitysolutions.com
Cequity Solution For Retention

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Cequity Solution For Retention

  • 1. Cu s t o m e r Ret e n t i o n an d Wi n - Bac k St r a t e g i e s u s i n g A n a l y t i c s f o r Re t a i l Sol u t i o n Over vi e w The biggest problem faced by Retail Stores providing credit through their proprietary cards is around customer retention. The cost of acquiring a new customer is far higher as compared to retaining and winning back an existing customer. The challenges currently faced are around knowing which customer would churn and what would be the preventive strategies to prevent the customers from churning. The challenge also lies around whether all customers who have churned should be won back or organizations should focus only the most valuable customers.
  • 2. Business Problem - What are the Retention Strategies Currently in place? Do we know from where the customer came to us? Do we know what are the reasons why the customer came to us? Do we know when the customer would close the relationship with us? Do we know the customer segments with their preferred products? How do we bundle Products/Services to maximize sale and reduce churn? How do we retain the highly profitable customers from going dormant? Develop Proactive Retention Strategies to Prevent Customer Churn Differentiate Proactive and Reactive Strategies Create Time Series trends for customers Develop Predicted Attrition Probability Treatment Optimization Conduct Market basket analyses to identify product association To identify the Credit Card Customers who are likely to become dormant and the most likely reason for dormancy Identify customer segments with preferred product association Business Problem - How can we Win-Back the Customers we have Lost? Do we know who our one-hit customers are? What are the different Campaigns that can be executed to win-back customer lost? Develop Win-Back Campaigns based on the insights gathered through Modeling To create actionable campaigns for multiple segments Valuable Customer win-back based on Customer Segmentation Utilize the learning’s from Churn Model Development to pro-actively prevent the top customers from churning Utilize the learning’s from Dormancy Model Development to pro-actively prevent the most valuable customer from going dormant
  • 3. Proactive action to reduce dormant bucket inflows Customer in Active 30 Customers in 45-60 days dormancy 90 + dormant customers re-activation Score with 90+ Score with 45-60 days Score 90 + dormant Dormancy Dormant re-activation customer re-activation prediction model model model Dormant re-activation Usage campaign Usage campaign campaign Focus on customers with Focus on customers with low propensity high propensity to go dormant to re-activate and give better offer Focus on customers with high propensity with better offer including customers to re-activate & remain active. Contact in the active 30 Peoples movement into dormancy buckets before proactive approach With new proactive approach the flow of customers into dormancy should reduce Development of models to identify card holders with propensity to go Dormant in future and Reactivation Model for Dormant card holders between 90 to 180 days vintage. Develop Churn Management Strategy (both Proactive and Reactive) resulting in control of customer erosion over a period of time. Voluntary Closure Involuntary Silent Attritors Closure Downward Upward Sale Sale Migration Migration
  • 4. Our Services CEQUITY’S services are powered with deep domain expertise and process excellence by adding Intelligence to Information. Our banking Analytics consultants are capable of generating effective solutions to your business problems and quickly provide you with a competitive price and turn-around time. Choose from a wide array of reports covering demographic trends, consumer spending potential, business profiles, consumer segmentation, activity volumes and more. Our Analytical Consultants are qualified to provide deep insights by objectively analyzing vast amount of customer transactional lifestyle and secondary data to help make quick business impact. Our consultants have rich experience in key verticals like: financial services, insurance, mortgage, retail, travel, entertainment & telecommunications. Our analytics services include: CEQUITY BIZACTION - Modeling Services Insight2Action Acquisition Models Insight2Action Value-build Models Insight2Action Retention Models Prospect Modeling and Scoring Cross-Sell/Up-Sell Analytics Churn Prediction Lead Scoring and Enhancement Lifecycle Profiling Attrition Models Optimal Contact Strategy Development Response/Conversion Modeling Portfolio Analysis CLTV Modeling Segmentation Models About Cequity Customer Equity Solutions (Cequity) Pvt. Ltd. is an IT-enabled Customer Experience Management Company which will help enterprises improve marketing performance and accelerates customer relationships. We help enterprises by combining data, technology and services to build actionable analytical marketing frameworks, optimize marketing performance and accelerate real-time customer engagement. Thereby, enabling greater ROI on their marketing technology investments. Cequity brings a blended perspective which allows companies to bring the power of Marketing automation technology to business problems. Our services include: Customer Management Consulting Managed Campaign Management Services Managed Analytics Marketing Operations and Measurement Services Marketing Database Solutions Event Driven Marketing Services Contact us: Customer Equity Solutions Pvt. Ltd. INDIA Mumbai Office: USA Chicago Office: 105-106, 1st Floor, Anand Estate, 189-A, Sane Guruji Marg, 626, Grove Street, Evantson, IL 60201 Mahalaxmi, Mumbai-400 011, India Phone: +91 22 23000133 / 23054039, Fax: +91 22 23053809 Website: www.cequitysolutions.com Email: info@cequitysolutions.com