Today, most businesses are making customer retention a top priority while gearing towards the automated prediction of customer churn, also known as attrition. Pivotal in any subscription-based business model (banking, telecom, digital services, etc.) refers to identifying the customers who will most likely unsubscribe or simply stop using a product or service in the near future.
Traditional surveys based on running questionnaires or interviews suffer from a high cost, limited access to customer population, and data self-reporting. Detecting churn by observation is almost impossible. That’s where we come in.
Churn Prediction Services by Tremend
Tremend provides a bespoke Churn Prediction model specifically designed for the needs of modern companies. Let’s explore some of the strengths of our model below:
- Domain expert knowledge: given that customer churn is tied to the particular business process and, in many cases, a form of identification or prediction is already ensured through hand-designed rules, we come with the experience to extract the domain expertise while moving forward.
- Data insights: through data science techniques, we gather and understand more about the available data volume and quality to further process and refine it to your best advantage. The usual process involves starting with a proposed set of features and elaborating it in several iterations with the domain experts while ensuring intermediary analysis, filtering, and processing steps.
- State-of-the-art AI model design and development: the model architectures we’re proposing to our customers take into account the best practices in the specific industry and usually include research tailored to fit the data and knowledge at hand.
- Adapting the framework to the specific client needs: since multiple business decisions and goals rely on identifying the future ex-customers, the results may differ from one case to another. Based on our experience, we recommended building two or more separate models with different structures and processed data that would better fit each case.
- Root Cause Analysis: while the early detection of customer attrition is the main goal, another key point of interest is extracting the main reasons (data features) that led to the system prediction, thus providing insights of how to approach customer retention in the preliminary stages.
- Recurrent model training: given that markets, options, and strategies change, there is a permanent need for re-training the model to account for the new data while slowly disregarding the old one. This option can be made operational after obtaining a steady model and a relevant measure of evaluation. The data period taken into consideration for training and the timespan until new coaching is needed can be extracted on a case-based scenario.
- Deployments freedom - on-premise or cloud: we have experience with integrating the churn prediction model both on-premise, in a container-based solution, as well as integrating customer data sources with cloud deployments, using customized cloud-based AI pipelines. We make sure to leverage the client’s infrastructure while ensuring complete data confidentiality.
Benefits of Implementing our Churn Prediction System
Our team implemented churn prediction models over banking customer’s data sets from several sources. Even though the path of obtaining a Proof of Concept is similar from one case to another, the decision-making process depends on the intrinsic structure of the business model and the data that is available or can be collected in every particular environment.
Usually, it is more expensive to try and attract new customers in businesses than to retain the existing ones. While the real-life retention improvement results are generally in the realm of 1-digit percentages (from the entire user base) in the early model iterations, this can have a tremendous impact when scaling out to hundreds of thousands of customers, especially in cases of recurring revenues per customer (e.g., subscriptions).
Moreover, the immense added business value is that, by predicting the churn customers, we are also analyzing why they churn, which provides strong insight for the future business process, yielding greater financial benefits in the long run.
Why choose Tremend’s Customer Churn Prediction Services?
Tremend stands out in the industry by having a highly experienced team in churn prediction, including specialists with an AI-specific Software Engineering background playing key roles in the entire Churn Prediction process: from the discovery workshop, extracting the needed knowledge, to obtaining an MVP and putting it into production.
Contact us for any type of Smart Prediction or AI implementation services you need and capitalize on our promise of providing top-notch AI services for your specific requirements.