Remember that Tom Cruise movie, “Minority Report,” set in a future in which authorities were equipped with the capability to predict - and prevent - crime?
Imagine if you were equipped with the capability and tools to predict - and prevent - customer churn for your digital platform (and without the need for those pool-floating ‘precogs’ - watch the movie and you’ll know).
Well, you don’t have to imagine it - or go to the movies to see it - because you already live in a present in which these capabilities exist.
For subscription-based businesses, customer churn is ever-present - it pretty much is joined at the virtual hip as an industry constant - which means churn management activities must be just as much at the forefront to combat it.
We talk a lot about churn management in this space because it's one of the incredibly important things we help address - and mitigate effectively - but for today let’s focus on one specific corner of the churn management ecosystem, explained in two words: prediction & proactivity.
Customer Outcome Desires
In order to maximize usage and realize desired outcomes, most technology companies today are investing heavily in customer success capabilities to proactively support customers. Doing so requires internal orchestration across the entire customer journey and close collaboration among a variety of functional teams, yet most organizations are far from achieving this heightened level of focus on customer-centricity.
As referenced in the Deloitte report, “Customer Outcomes: The Cornerstone of Exponential Growth,” a 2021 study the accounting firm did of chief customer officers (CCOs) in the technology industry found that nearly 90% of them strongly agree that a focus on customer outcomes is the next business model evolution. However, the same study also found only 15% stated they had the right level of technological maturity to deliver on that strategy.
Intelligence & Learning
And this is where AI/ML comes into the picture. System-stored subscriber data including details such as viewing history, log in frequency, payment history, methods of payment used and more can be used to predict the likelihood of future customer actions in their journeys - including the potential for churn. Advanced AI/ML models can be put to work to learn from this data, analyze behavioral trends, and predict everything from customer churn rate to customer satisfaction.
Such predictions can be utilized to segment subscribers and help craft hyper-personalized offers. Subscribers with a high propensity to churn can be offered more attractive discounts or other enticements, based on the gathered knowledge and analysis.
Consider the two scenarios, built on the knowledge of particular customers through gained subscriber data: A long-term subscriber may be retained with an additional 10% discount for a year while a rather new customer may consider being retained by the offer of, say, a free sports package for a limited time or something of similar value. It is all based on gathered and analyzed intelligence.
At Evergent, we’ve applied our own in-depth intelligence in this area in combination with years of experience in recently launching the Evergent Captivate Product Suite, our multi-pronged collection of specialized tools to reduce voluntary and involuntary churn, analyze and enact the right proactive measures.
The proactive prong of this set of products is Captivate Proact, an AI/ML-based churn prediction and analysis tool. Service providers are equipped with a strategy to deliver personalized offers or dunning treatment to their subscribers likely to churn, often averting an actual churn before it occurs.
Using advanced machine learning models, Captivate Proact can predict churn and trigger an appropriate promotional response. Service providers gain intelligent insights on churn candidacy potential via payment failure, affordability, billing information validity and more.
It’s “Minority Report,” for churn, right?
To learn more about the advanced capabilities of Captivate Proact along with the rest of our new Evergent Captivate Product Suite of churn management solutions, please set up a time to meet with our team of experts.