As with many eCommerce businesses, our client was facing difficulties retaining and driving long term value from its customers. Liberty was engaged to review the data and solve the customer retention and value problem through advanced analytics.
A leading digital marketplace for home services was struggling with a challenge many businesses have: that many of their customers were leaving prior to becoming profitable after acquisition costs are considered. They wanted to understand what causes these customers to leave, what they could do in order to prevent that from happening, and keep more long-term satisfied customers.
Liberty conducted a weeklong fact finding session, interviewing the business, IT, customer service, and customers to understand what might be causing the attrition. Liberty then worked with IT to gather the requisite data points and put the data through its repeatable Analytic Model Testing Framework in order to build, train,, and select the appropriate model. That model was run through an economic model to ensure that the resulting process changes would deliver an acceptable ROI before operationalizing a call center change that allowed our client to keep 8-10% of the customers it expected to lose. The results were material to the company’s bottom line.
ROI from Advanced Analytics Project
After Liberty conducted a six week Advanced Analytics program to understand the business problem. They helped drive and implement a change in the call center that proactively reached out to customers before they quit, resulting in 8-10% less attrition and a 14.6X in ROI.
