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In Part One of this two-part blog, we started providing a short overview of just some of the propensity models that Principa has developed. In this Part Two, we continue to look at different types of propensity models available across the customer engagement lifecycle that are used to predict behaviour and solve business problems.
Propensity modelling attempts to predict the likelihood that visitors, leads and customers will perform certain actions. It’s a statistical approach that accounts for all the independent and confounding variables that affects said behaviour. The propensity score, then, is the actual probability that the visitor, lead, or customer will perform a certain action.
Maximise profitability by reducing the churn of profitable customers Genius Retain is an analytics-as-a-service offering that allows you to statistically predict the probability of your customer cancelling their account, identify which customers are worth retaining and how to retain or re-activate these profitable customers. [FIND OUT MORE ABOUT GENIUS RETAIN] The ability to retain and re-activate dormant customers is vital to sustaining a profitable business. Companies with a clear plan to retain and activate dormant customers with a strong analytical overlay, can have a successful and profitable outcome. We discuss the value of a customer and how to retain and revive them. What is the true value of losing a customer?
Peoples habits are changing - Are you adapting?
What is Genius Leads? Principa’s Genius Leads is a POPI compliant provision service of South African consumer leads. We use advanced analytics and Machine Learning to optimise lists of new or existing marketing leads, so you target your most desirable customers and those profiled as most likely to respond to your campaign – improving campaign take-up and long-term customer profitability.
According to Marketing Metrics: The Definitive Guide to Measuring Marketing Performance, the probability of selling to a new prospect is 5 to 20%, while the likelihood of selling to an existing customer is 60 to 70%. Your customer growth strategy is an easy way to grow your bottom line and improve your revenue.
The right customers are important for every business. Marketing to and serving customers who are not profitable removes your focus from your best customers and ensuring they remain loyal to your business. (Click to Tweet!) Scorecards can help you identify and focus on your ideal customers by ranking your customers by the common criteria historically shown to be shared by your best customers.
As the pressure of intensifying competition mounts every day, companies must look to boost customer loyalty, considering that it costs five times as much to onboard a customer than it is to retain one. And with consumer influence now stronger than ever, businesses that fail to respond to their customers’ needs will feel the impact on their sales figures. A recent study by Bain & Company revealed a 10% increase in customer retention levels results in a 30% increase in the value of a company, and a 5% increase in customer retention rates increases profits by between 25 and 95%.
South African credit providers are heavily reliant on debit orders as a payment channel. According to the Payments Association of SA (PASA), around 48 million debit orders get processed monthly across all industries within the borders of this country. Of the two broad types of debit orders that we have, 33.5 million are standard debit orders, and 14.5 million are early debit orders. The early debit orders are further broken down into two types – being Non-Authenticated Early Debit Orders (NAEDO) and Authenticated Early Debit Orders (AEDO), with only around 1 million of the 14.5 million early debits being AEDO’s.