A complex problem but one where we have developed a practical way to help.

Our five step analytical approach

1. First we analyse a copy of your customer and trading data - after first merging any multi-company data - and break down your customers into discrete sales and marketing segments.

2. We next compute lifetime value and profitability for every customer, plus derive indicators that can be used in our lapse prevention process.

3. Using several statistical methodologies and also taking account of external market factors, we examine purchasing patterns and identify data that combines in some way to predict customers likely to lapse or defect (churn). 

4. Usually on a monthly basis we compare snapshots of sales transactions and identify where customer behaviour is significantly different from our predictions. We translate these findings into 'marketing action' indicators - order value decline, etc. - and compute a likelihood to lapse score.

5. We produce the output that will drive your sales activities. This can be a file for your I.T. team to match into your contact management system, with content tailored to suit your business. It is likely to contain data as shown opposite...

Typically any system can be customised to store and use our lapse prevention scores including Salesforce, Siebel, SAP, Pivotal, Goldmine, Act, Mail Order systems, etc.

Note. We can often help with the update if you have limited internal resources.
What's more, as well as providing data to put in your CRM or operational systems, we can make available our on-line 'targeting workbench' solution - loaded with the same data for more complex campaigns, and also show the customers that need to be visited on customised maps. These can also be structured to show connecting routes for optimised call plans.

Applying the intelligence

By sorting and selecting your contacts using this new insight, you can identify who, and in which order, your telesales team should call - those with the greatest likelihood to lapse.

Or, for customers of less value to your company, you can select who to mail or email with an appropriate offer.

We score your customers based on their likelihood
to lapse, then help you select people with
high scores so you can take corrective
action using telemarketing, mailing and email

Keeping your lapse prevention scores updated

On a monthly basis we will analyse your new sales transactions, and re-run our lapse prevention models. Updated scores are fed back to your CRM system so you can see how well your risk prevention is working and find out who to contact next!

We can also adopt a similar approach for retail and trade outlets, partners, resellers, distributors, etc. - but using different models depending on your objectives.

If you used a retail (or trade) partner channel, we can track sales patterns month on month by partner by store, and where the actual sales vary from our predictions (after first taking account of market and optionally geographic factors), we can provide you with a risk alert in whatever format you need. 

For instance, whilst all of your resellers may experience a slowdown from time to time, if one or more outlets are out of kilter with the rest, we can help identify them - and by product or brand. The cause may not be just a lack of prospects, but could be due to the repositioning of your product range to a less prominent position in the store.