BIG DATA STRATEGY RETAINS HIGH-VALUE CUSTOMERS & BOOSTS BOTTOM LINE

Using data to drive customer retention and maximize marketing and promotion dollars

SITUATION

A Fortune 100 company used big data to improve customer retention and maximize marketing and promotion dollars. Historically, renewal offers were applied consistently across its customer base. The company wanted to know how to maximize marketing dollars to retain the highest-value customers.

THE SYNAPTIC SHIFT

This client used internal data to identify upcoming renewals by location and credit history. Capto recommended layering in third-party data, including competitor offers, macroeconomic data, psychographics and even weather data influencing its customers by geographic area. The company segmented its customers and tailored offers by economic and competitive factors and by ZIP code, with a high degree of accuracy and cost efficiency.

RESULTS

The company improved upon its churn performance by 3 percent — nearly unheard-of in its industry, while reducing spending retention offers to customers with high propensity to renew.