There is stiff competition in every industry for acquiring and retaining customers. The companies these days focus more towards the retention of the existing loyal customers so they do not get shifted towards purchasing products from other competitors in the market. Companies design and develop strategies so as to be able to identify and get engaged with such customers pre-emptively so that loyalty gets shored up and they are able to retain their revenue. Churn analysis is a very useful tool here to achieve this kind of identification or further for the calculation of the attrition rate and identifying which customers could get impacted. It is obvious that Churn analysis has several benefits for a company. These could be aiding in the development of result oriented marketing strategies and campaigns for helping and identifying the most valuable customers based on the contribution to profit.
- Optimization of Results: Doing a comparison of the latest data mining algorithm in order to identify the most profitable model. Produce easy profit charts as well
- Model Scoring: Often software provide the option of real time scoring which means that the churn models are improved and profit charts can be generated for comparison
- Sharing of data: When the user is in a multiuser environment where collaborative efforts count, there are software options that allow you to share data, churn the models and get benefit from the collaborative work.
- Real time processing: this again is very helpful as it helps in building and determining both batches wise as well as in real time the customers who could possibly shift their purchases to another company or transfer businesses elsewhere.