Our client, a major Australian bank, experienced a significant decline in customers within a specific segment. With soaring churn rates and escalating customer acquisition costs, the bank faced challenges in meeting its business unit KPIs. To tackle this issue, they sought a solution to identify customers who were likely to churn in the near future, enabling them to take proactive measures for customer retention.
Ingrity developed a sophisticated churn prediction model leveraging transactional information, customer behaviour, and demographics as key features. This model accurately predicted the probability of customers becoming dormant within the next 3 to 6 months with high confidence. As a result, we delivered a list highlighting 17% of retail accountholders deemed at high risk of dormancy.
With the model successfully deployed in production, our client gained the capability to regularly evaluate customer behaviour. Armed with these actionable insights, they were able to proactively intervene and address customer concerns promptly, thereby improving customer satisfaction and loyalty.
By leveraging the churn prediction model, our client gained a strategic advantage in prioritizing marketing campaigns aimed at customers with a high propensity for churn in the near term. This targeted approach resulted in a remarkable 23% reduction in customer attrition.
The ability to identify and manage at-risk customers proactively empowered our client to optimize their retention efforts, mitigate churn, and ultimately strengthen customer relationships. This, in turn, positively impacted their business performance, minimizing customer acquisition costs, and fostering sustainable growth in a highly competitive banking landscape.