Customer retention is a term used to define the number of customers that continue buying from a business after the initial purchase. A customer retention rate is used to measure this – it is the percentage of customers that the company manages to retain over a specified period. Churn rate, on the other hand, is the opposite of retention rate and it shows the percentage of customers which the company lost over a specified period.
In business decision making, the consideration of the customer retention rate is crucial. In the past, a manual calculation was made to find out the customer retention rate and it used to be inaccurate and did not provide much insight. However, with the advancement of technology, businesses have realized the potential of Data Analytics, Data Science, Big Data, Business Analytics, Business Intelligence, Visualization, Machine Learning, Data Mining and Artificial Intelligence in general. All of these subsets have opened up a new way for businesses to target customers and perform more efficient operations.
Customer Retention Analysis
Customer retention analysis is one of the most powerful tools as it helps businesses better understand customer persona, customer retention rates, as well as the factors which affect retention. Actionable insights are provided through it. Thus, more effective marketing and product decisions can be made for better results.
A sales or product team will find it hard to determine the performance of a product with a target audience. If customers are growing, the team might be misled into believing that the product or brand is doing well. However, if only new customers are buying the products and old customers keep on switching to other products, it is an alarming situation where machine-learning-based customer retention analysis will help the business react before it is too late and their market is saturated.
Artificial Intelligence is revolutionizing the world. Data Analytics, Data Science, Big Data, Business Analytics, Business Intelligence, Visualization, Machine Learning, and Data Mining are the forefront of this change.
Companies already have customer data and it is vital to make the most of this data to make effective marketing and overall business decisions. Machine learning is changing the entire business landscape. Companies can leverage data through machine learning to achieve their full potential and to make long-term sustainable decisions.
How NextBee can help?
If you want your business to actualize the power of Predictive Analysis, then you need NextBee to help you. NextBee is one of the most popular data-driven companies. With a stellar team and a successful track record of over 10 years, the company can help your business reach its true potential.
The world is changing constantly and with new technologies being introduced every single day, it is crucial to hire an expert to help in your business growth. Simple and efficient machine learning models are created by NextBee so that you can use the framework to gain insights and take actions based on those insights.
The company can successfully help your business integrate, deploy and create machine learning-based models that offer the best results. The AI layer can integrate with existing technology in your business to allow for machine learning to be done easily. The company ensures that data collection is effectively done for model deployment and faster analysis.
When you choose NextBee to help you achieve your business goals, you get to boost customer lifetime value, drive more sales, boost cross-sells, and build greater brand affinity. By having a close customer community, solid brand affinity can be built based on the shared principles and values so that you can better identify with the customers and ensure that customers are always updated when it comes to holidays, special offers and events. NextBee is the next best thing for your business. If you want to take your business to the next level, then you need NextBee as a reliable partner.