Retention Pricing & Customer Basket/Bundling Pricing to reduce attrition
Historical and transaction customer data was used to determine drivers that were most commonly linked with the likelihood of customer switching providers. These drivers ranged from their product basket, usage behaviour to complaints logged. Customers that were predicted as likely to drop out were assessed for their value to the organisation by computing their customer lifetime value. They were also assessed on their likelihood to respond positively to a price promotion. For those with a high CLV and likelihood of positive response to price promotions, predictive price recommendations were provided to sales to negotiation new contracts.