The client is a leading health-tech firm which offers subscription-based health and wellness plans to customers in the US and other countries in the world.
Armed with multiple decades of experience in customer retention, the Tenzai team devised a three-stage approach to address customer churn.
Data from multiple sources like CRM, product usage, subscription behavior and campaign system were considered for the analysis. Key drivers of churn were identified based on in-depth exploratory analysis. Based on the insights from analysis, marketers were able design strategic interventions/programs to address churn.
Next, Tenzai developed a customer segmentation model to understand customer behavior among diverse customer groups. Customers were segmented into clusters based on their product usage, value, loyalty, and subscription frequency. It helped in understanding the variances between multiple customer segments.
Tenzai employed a unique approach, to identify potential churners and then prioritize the right customers for retention. A two-stage stacked ensemble model was built, the first model was used to predict the propensity of customers who are most likely to churn.
Then to prioritize the right customers for retention, customer lifetime value (CLV) for each customer was calculated using a regression model. Customers were then prioritized for retention campaigns based on their churn propensity and CLV score.