Churn Analysis for Better Customer Retention

Clients come to us saying, ‘We’re losing customers, and we don’t understand why.’ Losing business can often feel like a situation that’s out of your control, but it doesn’t have to be.

At INSIGHT2PROFIT, our first step in preventing customer churn is analyzing your transaction-level data and identifying customers’ conventional ordering patterns. Once we understand each customer’s historical norm, we use that information going forward to offer visibility into instances where their behavior begins to fall outside of the norm – which may be an indication that you are in danger of losing that business.

Order Pattern Trends - identify at risk customers by observing order patterns over the past 12 months

order pattern trends

Customer churn analysis and prediction isn’t just a math exercise, though.

Customer patterns can change for any number of reasons – seasonality, promotions, market dynamics – and we use our expertise to help you understand whether a behavior shift is meaningful. When our analysis and know-how determine that a customer’s behavior is indicative of potential churn, you then have the chance to have a conversation with that customer before you lose the business. You can be proactive – do you want to position new products with this customer, do you want to adjust your pricing to be competitive with another firm in order to maintain the relationship – and turn the possible loss of business into a strategic decision rather than a situation that’s out of your hands.

Analytics That Can Help You Better Understand the Market

With INSIGHT’s analytics, the customer or products at risk for churn can be delivered directly to your sales team, and tasks can be added to their call reports. Closing the loop by adding the reason for churn or if the business has been recovered can help you better understand the market and the dynamics within your customer’s business.

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