Client :

Banking industry

Challenge :

Customer leave the business, decreasing revenue (acquiring a new customer cost 5 times more than retaining one) and impeding growth (hurt reputation)

Our Intervention :

Reducing churn can be addressed in 2 way:

• Strategic : Finding main cause of churn and addressing it (e.g. product flaw, missing service, pricing)
• Tactical : Identifying at risk client to make them an offer and prevent them to leave

NOTE: those 2 methods should not be attempted together as the action of the first will affect the algorithm developed for the later.

Added Value :

According the creator of the NPS score system, reducing churn by 5% increase profit by 25% in the long run