Customer Retention

Customizing Rates based on Individual Data using Data Analytics and AI

Goal

Strategic Advantage → Customer Satisfaction → Increased Revenue and ROI

Challenges

The primary goal of any business is to stay in business. In other words, any business is aiming to retain customers for as long as possible, as it boosts the revenue of the company and increases the lifetime value of the customers. It is widely accepted that retaining a loyal customer in the Insurance industry is rather cost effective than acquiring a new one. Rule-based systems which is the traditional method for churn analysis, are inflexible and miss customers who leave, while at the same time generates false positives, ending-up giving expensive incentives to customers who do not need them.

Opportunities

Artificial intelligence and machine learning are the perfect solutions for customer retention and churn prevention. Data-Driven AI can deploy a variety of data, as well as new data sources and historical data, in order to determine risk. Artificial intelligence can also determine what type of promotional offer can achieve the best result for the highest engagement and retention for each individual customer. Based on this, the system can automatically personalize the promotional offer without the need of human intervention.

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