Open Enrollment | Subscribe to Target Marketing HERE
Connect
Follow us on
Advertisement
 

Think You Know Churn? We’ll See About That.

April 21, 2014 By Matt Shanahan
Get the Flash Player to see this rotator.
 
Predictive analytics is a powerful tool for creating an efficient and effective customer success organization. However, predictive analytics developed from intuition and hunches without proper validation can be detrimental to a business. Customer success teams need to understand the balance between customer coverage and predictive accuracy to identify false alarms and fire drills, and to know when to act to prevent churn. If not done properly, some scoring rules actually hurt rather than help the customer success organization.

If you implement scoring rules for identifying at-risk customers, you will want to be sure the rules actually help your customer success organization, i.e., that the rules provide a return on investment (ROI). A scoring rule with low accuracy hurts your organization by reducing efficiency and effectiveness. Many scoring rules are developed from the experience and intuition of customer success managers, but most have not been validated as to their customer coverage or predictive accuracy—the two facets that determine ROI in predicting churn.

What Are These Facets and How Do They Affect Your Organization?
Customer coverage is the percentage measurement of the customer base for which the scoring rule provides insight. For example, if a rule is implemented based on survey response, there will be low coverage. Typically, 20 percent is considered an awesome response rate for a survey. Most survey response rates are in the 10 percent to 15 percent range. The implication is more than 80 percent of your customers will not respond to the survey—that means that scoring rule based on survey responses has low customer coverage. Creating rules around other metrics, such as number of open support cases or attendance at customer events, can fall into the low coverage category. Rules with high customer coverage include demographic, firmographic, purchase history and usage metrics.

Predictive accuracy is the percentage measurement of a rule's true vs. false predictions. In the case of churn, if a scoring rule predicts someone to be a non-churner and they do in fact churn, that is a false prediction. Likewise, another false prediction would be if the rule predicts a churner and, without any intervention from customer success, the churner renews. True predictions are, of course, the opposite of these. The percentage of true predictions vs. the total provides predictive accuracy.

 

SPONSORED CONTENT

MORE ON DATABASE, LISTS AND CRM >>

FROM THE BOOKSTORE

<i>The Business of Database Marketing</i> covers all the bases for the typical business reader.  It even includes a catalog of the 37 “Best Practices” and a roundup of some of the major “Dos and Don’ts” in making business sense of the world of database marketing.  It will be the one easy-to-read and easy-to-understand guide for putting database marketing and customer relationship management to productive use for every business. The Business of Database Marketing

The Business of Database Marketing covers all the bases for the typical business reader. It even includes a catalog of the 37 “Best Practices” and a roundup of some of the major “Dos and Don’ts” in making business sense of the world of database marketing. It will be the one...

ORDER NOW

 

SPONSORED CONTENT

MORE ON MARKETING STRATEGY >>

FROM THE BOOKSTORE

PDF FORMAT

<i>"Despite news to the contrary — especially from the social media space — reports of the death of email are greatly exaggerated. In fact, as your inboxes most likely show, email is growing and becoming even more sophisticated."</i> -- from <i>The Ultimate Guide to Email Marketing</i> 

It's true. Email marketing is still going strong, and continues to be one of the most important factors in any marketing campaign. 

From the first six months of 2010 to the first six months of 2011 alone, there was a nearly 21 percent increase in email volume! The average number of emails received per day in the first six months of 2010 was 472, and during the first six months of 2011, the daily average increased to 571. Marketers are having success with their email campaigns and using it more and more.

That being the case, your email marketing campaign needs all the attention it can get, and knowing what works and what doesn't is the best way to start. That's where "The Ultimate Guide to Email Marketing" comes in. 

The Guide is brought to you by the email marketing experts at DMIQ and their extensive research into one of the largest email campaign archives in the industry. On top of latest trends, it features 19 best practice chapters from today's email marketing thought leaders. You will learn how to create a relevant email program to nurture leads and drive sales, how to best use call-to-action visuals in your emails, and how to use social email to improve marketing effectiveness.

You’ll also learn:

•	Email Marketing Trends in 2011
•	Best Practices in Writing Subject Lines
•	The Strategy (and Tricks) for Improving Open Rate and Response
•	6 Tests to Improve Email Program Results
•	5 Best Practices for the Gangbusting Email Campaign
•	Best Practices for Improving Email Performance
•	6 Ways to Make Your Emails Mobile-Ready
•	Email Branding — The 16 Most Effective Strategies
•	11 Best Creative Practices for B-to-B Email Marketing
•	The Keys to Developing a Successful E-newsletter
•	How to Determine Your Customers’ Email Content Tolerance
•	How Email Marketers Can Optimize the Social Media Opportunity
•	…Just to name a few!

This comprehensive report also offers three in-depth case studies, so you can see practical examples of how these methods worked for real-life businesses. "The Ultimate Guide to Email Marketing" is an essential tool for any business that ever sends an email. 

<b><u>100% Money-Back Guarantee</b></u>

Your order is risk-free. If you are not completely delighted with “The Ultimate Guide to Email Marketing,” notify us within 30 days for a complete credit or refund, no questions asked.

<u>About DirectMarketingIQ</u>
The Research Division of the Target Marketing Group, DirectMarketingIQ (www.directmarketingiq.com) is the go-to resource for direct marketers. Publishing books, special reports, case study stockpiles and how-to guides, it opens up a new world for those who seek more information, more ideas and more success stories in order to boost their own marketing efforts. DirectMarketingIQ has unparalleled access to direct marketing data - including the world's most complete library of direct mail as well as a growing library of promotional emails across hundreds of categories - and proudly produces content from the most experienced editors and practitioners in the industry.

Note: You must have Adobe Acrobat Reader in order to read The Ultimate Guide to Email Marketing, which is in PDF format. The Ultimate Guide to Email Marketing

PDF FORMAT "Despite news to the contrary — especially from the social media space — reports of the death of email are greatly exaggerated. In fact, as your inboxes most likely show, email is growing and becoming even more sophisticated." -- from The Ultimate Guide to Email Marketing It's true....

ORDER NOW

(PDF Download)

Direct mail, email, mobile, social media, video, search ... the marketing landscape can either be a minefield where mistakes can kill campaigns, or a perfectly integrated mix of channels that maximizes the reach of the message and gives a nonprofit the best chance to capture more donor dollars.  

<b>In <i>"The Art & Science of Multichannel Fundraising" </i> from DirectMarketingIQ, the roadmap to that "perfectly integrated mix" is thoroughly laid out in over 130 pages -- <u>it's specifically created (and priced) for nonprofits</u>. </b>
  
First, 9 chapters from leading fundraisers give you the latest best practices in multichannel fundraising, including how to:  

• Choose the right channels for your campaign 
• Develop creative that works across multiple channels 
• Revitalize the direct mail component of your multichannel mix 
• Make sure email plays its increasingly important role perfectly 
• Seamlessly integrate mobile marketing into the fundraising campaign 
• Boost your online strategy with social media 
• Create a multichannel donor renewal campaign 
• Figure out that you're doing right — via testing and results measurement 
• Use all the pieces of the multichannel puzzle  

Second, in 8 robust case studies, find out the secrets behind multichannel fundraising campaigns that worked.

About DirectMarketingIQ
The Research Division of the Target Marketing Group, DirectMarketingIQ (www.directmarketingiq.com) is the marketers’ go-to resource. Publishing books, special reports, case studies and how-to-guides, it opens up a new world to those who seek more information, more ideas and more success stories in order to boost their own marketing efforts. DirectMarketingIQ has unparalleled access to direct marketing data – including the world’s most complete library of direct mail as well as a massive library of promotional emails across hundreds of categories – and producly produces content from the most experienced editors and practitioners in the industry.

<b>Note: You must have Adobe Acrobat Reader in order to read , The Art & Science of Multichannel Fundraising which is in PDF format.</b> The Art & Science of Multichannel Fundraising

(PDF Download) Direct mail, email, mobile, social media, video, search ... the marketing landscape can either be a minefield where mistakes can kill campaigns, or a perfectly integrated mix of channels that maximizes the reach of the message and gives a nonprofit the best chance to capture more donor dollars....

ORDER NOW

 

COMMENTS

Click here to leave a comment...
Comment *
Most Recent Comments: