Find Warning Signs Early With Predictive Churn Software
Predictive churn software has a big job to do — because churn is a big problem for businesses.
Every year, businesses lose roughly $1.6 trillion to churn. In some industries, up to a quarter of customers churn each year. That represents a huge loss of revenue and a poor customer experience.
Churn means that customers are spending less money with your business. They may have stopped patronizing your business completely or are simply purchasing less frequently. However you define it, churn is bad for business.
Predictive Customer Churn Software Addresses Churn — Before It Happens
Until recently, customer experience directors, brand managers, and customer success teams haven’t had a way to anticipate and take action to prevent churn. Predictive customer churn software may offer a path forward.
It can be difficult to spot warning signs of churn. Looking at spreadsheets or traditional BI tools isn’t sufficient to identify complex patterns of customer behavior that precede churn. So many potential factors affect customers’ purchasing decisions, making reducing churn.
Predictive models built with predictive churn software can find those critical patterns in the data. These models rapidly determine which customers are more likely to churn.
This software doesn’t just analyze what happened in the past. Predictive analytics gives you a glimpse of customers’ behavior in the future. That includes the ability to predict which existing customers might leave.
That advance knowledge lets you plan what you’ll offer customers so you can keep them loyal and happy. You’ll lower your churn rate and boost customer retention — and your bottom line.
Why You Can’t Afford to Ignore Churn
Attracting a new customer can be 6-7 times more expensive than retaining a new one. Even if you replace every customer you lose to churn with a new customer, you’re still losing money. The best way to maintain your success is to retain the customers you already have.
A single negative experience will turn a third of your customers away from your business. It doesn’t take much for a customer to churn. A seemingly minor issue can be enough to propel a customer into the arms of your competitors.
Only one in 26 customers will launch a complaint when they aren’t happy. Most dissatisfied customers leave quietly — they’re out the door without a word. You don’t even know in advance that they’re disappointed, and you don’t get a chance to fix the relationship. The absence of customer feedback doesn’t imply satisfaction.
Without using predictive analytics to identify and address churn risk, your business is operating in the dark. But fortunately, this innovative technology can increase your confidence in how you are maintaining your customer relationships. Customer churn prediction software helps you develop an effective game plan for identifying and nurturing your at-risk customers.
What Pecan’s Predictive Churn Models Offer
Pecan AI’s low-code predictive analytics platform helps you predict and reduce churn quickly. Using your customer data and transaction data, and without additional data science resources, your data analysts can build sophisticated machine learning models. These models can:
- Understand what influences customers’ potential to churn
- Detect 85% of would-be churn
- Lower churn by roughly 15-20%
Some predictive churn software, including Pecan, can also assign each customer a specific churn likelihood score. That score is important to understanding and acting on the risk of churn. Specific scores generated by the churn prediction model let you create groups of customers. Those defined groups can each receive targeted offers, promotions, or messages designed to keep their business.
Importantly, Pecan also includes explanations for the factors that contributed to each score. These explanations allow you to choose how to take action to retain at-risk customers.
You can also use the collected information across all your customers in a variety of ways, beyond reducing customer churn. It can help you:
- Plan future campaigns,
- Inform decisions about new products and services
- Guide customer service initiatives
- Shape strategies to boost customer satisfaction
- Improve customers’ experiences with your brand
Keep your customers today and in the future with foresight from Pecan’s predictive churn models.