SubscribeCo provides specialist accountancy services to contractors and self-employed professionals through its innovative cloud platform. As a subscription business, SubscribeCo’s business model relies on holding customers for the long-term and keeping customer churn low.
To aid these efforts, SubscribeCo sought help from Eagle Point Partners to predict which customers might be at risk of leaving, so that they could pro-actively contact these customers and address any potential problems. This would serve to reduce customer churn and improve profitability.
Eagle Point analysed anonymised data from several internal sources to gain a comprehensive understanding of SubscribeCo’s customer base and their behaviour. We then designed a churn propensity model to score customers based on a set of variables, all using SubscribeCo’s own data sources.
These variables included location, occupation, in-app activity, acquisition channel and many more. We also included scores based on Squirro’s text analysis tool to gauge customer satisfaction from email interactions.
The churn propensity model allocates each customer a score between 0 and 1, with 0 indicating a customer is highly unlikely to churn and 1 indicating they are highly likely to churn. Based on this score, SubscribeCo could identify which customers should be targeted as part of a retention campaign and reach out to those customers accordingly.
SubscribeCo has integrated the churn propensity model into its workflow. Every month, the customers most likely to churn are identified and pro-actively contacted to investigate any problems the customer may have with the service.
On the flip-side, SubscribeCo can also profile customers with a low propensity to churn to help the them isolate the segment of their customer base who are the most profitable.