The online market is highly competitive – the closest it can get to the definition of ‘Perfect Competition’ in a standard micro-economics text book. Margins are thinning with time, and customer loyalty is becoming just a concept. In this scenario, it becomes essential to take calculated steps in an attempt to identify reasons for customer attrition, the time estimate when they are likely to drop off, and approach them with a smart retention strategy to increase their lifetime value. This approach not only brings extra revenue from an existing customer, but also saves a significant cost of acquiring a new one.
The Nabler Edge
To identify the correct segments to be targeted and nurtured, Nabler uses some of these methods:
- Cohort Analysis: We use a time-based segmentation methodology and chart the relationship of customers with your company over time. This helps in identifying the time period by when the cohort is expected to discontinue with your service.
- Parameteric Identification: We identify your company’s key proposition value and the parameters that influence the journey of the customer with your company.
- Logistic Regression: We use logistic regression to study past behavior and predict the influence of the parameters on the cohorts.
- Retention Strategy: Once the parametric influence, attrition factors, and time of drop off are recognized, we help you design the optimal retention strategy to improve the existing customers’ value contribution.
What you get?
Nabler offers tested methods, proven approach, and the science of statistics to help you save significant marketing dollars from being spent on acquiring new customers. We enable you to focus on segments that are about to drop-off and prolong their journey with smart retention strategies that cater to the exact needs of each of those segments.