Churn prediction directly impacts growth
From SaaS companies to telecom, e-commerce and insurance companies, tracking churners, i.e. users that stopped using your product(s) or service(s) is key as the cost of retaining existing customers is often lower than acquiring new ones. Reducing the revenue slackening due to churn, businesses with strong levels of customer success eventually grow even faster.
A McKinsey report from 2016 showed that lower net-revenue churn, i.e. the percentage of revenue lost from existing customers on a given period, is correlated with higher growth.
Hence the importance of controlling churn and predict it efficiently.
Common pitfalls of churn prediction
Churn prediction, because of the business impact it generates and its relative ease to execute, is often seen as a good first project to address using machine learning and AI.
However, such projects can be slowed down due to several pitfalls:
- Data availability and capture: coming from multiple, cross-functional tools
- Predictions timeframe and scope: predicting people that will obviously churn?
- Output integrations into your existing sales pipelines
Supercharge growth and customer loyalty
ForePaaS is an AI application platform aimed at helping companies build and own their path to AI at scale. Creating and maintaining in production a churn prediction pipeline becomes simple thanks to ForePaaS’ killer features:
- Data collection and preparation: pick preconfigured sources in ForePaaS marketplace (including your favorite CRM) before analyzing, cleaning and organizing your data in the most relevant data model
- Predictive modeling: build, train, score and run your predictive models, manage your project versions to deploy the best model and monitor performance efficiently
- Deployment: leverage ForePaaS managed deployment to turn your POC into a production-grade business application ready to deliver value to your sales and customer success teams
Detect your most vulnerable customers from your history of customer interactions and help your teams renew them efficiently and increase their loyalty to better customized offers.