Staying ahead means continuously innovating and adapting strategies to meet evolving consumer demands. Incorporating advanced solutions and features, such as predictive modeling, is rapidly becoming a table stakes component for agencies and SaaS platforms alike.

Predictable’s Churn Propensity Model is a key competitive differentiator, offering an advanced method to precisely identify customers at risk of churning. These predictions support the development of personalized lifecycle marketing and efficient retention strategies.

What is Churn Propensity?

Churn propensity refers to the likelihood of a customer discontinuing their relationship with a business within a given timeframe. When key first party customer data points are analyzed by Predictable’s AI engine, we create a powerful churn score, allowing businesses to predict and prevent customer churn much more effectively.

Methodology Behind the Model

Predictable’s Churn Propensity Model relies on first party data sources, including but not limited to:

• Transaction Data
• Email Engagement Data
• Web/Pixel Engagement Data

By incorporating these key data pillars, along with other forms of first party data, Predictable generates highly customized predictions that enable targeted interventions.

Seamless Integration

Integrating the Churn Propensity Model into marketing workflows is seamless with Predictable’s plug-and-play approach. Customer scores and segments are built to be directly populated into an Email Service Provider (ESP), CDP, eCommerce platform, or data warehouse.

These scores and segments are automatically updated daily by default, this dynamic update ensures marketers can create strategies that remain relevant and impactful over time.

Strategically Powered Segmentation

Effective segmentation is at the heart of successful marketing strategies. Predictable’s Churn Propensity Model categorizes customers into high, medium, and low propensity segments, each immediately ready for activation:

• High Churn Propensity: Customers in the top 20% most likely to churn
• Medium Churn Propensity: Customers in the middle 60% likelihood to churn
• Low Churn Propensity: Customers in the bottom 20% likelihood to churn

Smart Segments

Smart Segments are strategically refined by combining model scores with customer features. The churn propensity model powers the following smart segments:

• Priority Winbacks: Customers who have no purchases within the churn modeling window but had a high LTV score previously

Real-World Applications

The scores and segments from the churn propensity model offer remarkable versatility, allowing for diverse deployment across your marketing channels. Common strategies for each segment include:

• High Churn Propensity: Exclude these customers from paid media to optimize resource allocation.
• Medium Churn Propensity: Encourage maintained loyalty with special offers or discounts.
• Low Churn Propensity: Limit the number of discounts and offers provided to customers who are likely loyal shoppers to optimize AOV.
• Priority Winbacks: Create re-engagement campaigns to regain customer interest and loyalty.

Proven Results

A leading retail brand used Predictable via a white label integration into a leading CDP platform. Using the churn propensity model, they created targeted re-engagement campaigns, resulting in a 25% increase in customer retention rates. By focusing efforts on those most likely to churn, they optimized their marketing spend and improved overall ROI.

Constantly Evolving

Predictable is designed for adaptability, aligning with the dynamic nature of the digital marketing ecosystem. Our models learn from ongoing data streams and update daily, ensuring the predictions they generate are always current and relevant. This empowers marketers with predictive data that aligns with the latest trends in customer behavior, making our solutions not just responsive but proactive.

Other Key Components Gained with Predictable

1. Transparency: Our five transparent scoring models are built with insights by design, expanding your BI & Analytics capabilities.
2. Scalable Analytics Without Analysts: Natural language queries give improved access to marketers and non-technical users, allowing you to scale your analytics team without hiring additional analysts.
3. Cookieless Solution: With upcoming cookie deprecation, our cookieless solution is your answer to data privacy concerns.
4. Rapid Time to Value: Enjoy zero-copy integration achieving results in days, not weeks.
5. Proven Testing Methodology: Our proven testing methodology ensures a smooth roll-out.

The Decision to Use Predictive Modeling

Integrating predictive AI is pivotal and should be undertaken with careful consideration of timing, methodology, and underlying objectives.

When to Use Predictive AI

The optimal time to start utilizing predictive AI is after establishing first party data collection processes. Leveraging data-driven insights for enhanced decision-making becomes a natural progression. This often aligns with growth stages such as expanding your customer base, launching new products, or entering new markets, which necessitate a refined and broad pool of strategies. Conversely, it can also be crucial when your growth is stagnating or proving ineffective.

How to Implement Predictive AI

Start by ensuring access to clean, comprehensive first party data. If necessary, Predictable collaborates closely with partners to support data readiness. Once the data is in place, Predictable can seamlessly integrate into existing systems and workflows, delivering swift and effective results.

Why Choose Predictive AI

Predictive AI, especially Predictable’s Churn Propensity Model, serves as a force multiplier for marketers. This model moves beyond reactive strategies, enabling engagement that is both relevant and timely. By predicting which segments are most likely to churn, marketers can allocate resources more efficiently, maximizing ROI while minimizing waste in ad spend and efforts. Predictable’s success stories highlight the substantial impact these models can have on retention and customer lifetime value.

Conclusion

Leveraging first party data effectively can be the difference between thriving and merely surviving in today’s competitive market. Predictable’s Churn Propensity Model offers businesses a detailed, nuanced understanding of their customers, empowering them to make informed, strategic decisions that drive retention and customer loyalty.

Interested in seeing how Predictable’s model can revolutionize your platform or marketing strategies?

Schedule time with one of our experts today.