Churn Prevention Model
Churn management of one’s client base entails the optimisation of the turnover of the client park, while minimising the out-fluxes of the most profitable clients. From the statistical/prediction point of view, this objective translates into analysis of the phenomenon of abandoners, with the aim of preventing a single out-going churn event on the basis of a succession of behaviours that the client demonstrates in a specific period of time.
Preventing the possibility of abandonment of clients with multi-varied statistical methods is a fundamental competitive advantage for companies. It allows them to adopt counter measures required to maintain and gain the loyalty of so-called “at risk” clients, with a vision aimed at the prevention of abandonment.
Predict to prevent must be the final aim of a churn management system, which supports the company in the constructing a privileged and long-standing relationship with its clients.