Key takeaways
- Proactive Retention: The most critical period for customer churn is around the end-of-contract (EOC) period, specifically two months before and two months after the contract ends.
- Customer Lifecycle: Learn about the three key moments: MOC (middle of contract), EOC (end of contract), and OOC (out of contract).
- Segmentation: To effectively combat churn, companies should segment their customer database based on value and churn risk, using predictive models. An example segmentation categorizes customers into "Blue" (most valued, low churn risk), "Red" (low value, low churn risk), "Grey" (medium value, medium churn risk), and "Green" (high churn risk).
- Actionable Strategies: It's essential to have foster open-mindedness, testing, and regular optimization of retention processes. CRM departments should support these efforts with predictive models and system integration based on a clear Customer Value strategy.
The author, Ola Pytel, is an expert in loyalty tactics and churn reduction, with 20 years of experience in telecommunication.
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