Customer lifecycle and churn is at the core of Retention Marketing. Understanding how to encourage additional purchases and lengthen the customer lifecycle is worth just as much attention and effort as your acquisition marketing efforts. Luckily the Cortex data science models will evaluate your customers' post-purchase behavior and place them into three easy-to-understand buckets.
Customer Churn States are based on a Cortex-calculated Churn Score. The churn score model evaluates the purchase behavior of your existing customers, and scores all your customers accordingly. Churn Score considers the amount of activity and time customers spend on site, the products they've browsed and purchased, their number of purchases, and even their individual demographics. Churn score is a self-correcting system and will adapt to your individual business and customer profile.
Ready To Buy
Ready to buy customers are exhibiting behavior that indicates they are likely to make another purchase within the expected customer lifecycle for your brand. This is the most valuable group of customers to focus on as their lifetime value is often far greater than that of new acquisitions who may churn after as little as one purchase.
Clients in the At Risk group were Ready To Buy, but are now very close to matching the behavior of Churned customers. It is important to re-engage these customers to extend their customer lifespan and increase the odds of another purchase. Users in the At Risk group are between 2 and 15 times more likely to purchase than Churned customers.
Churned customers are not expected to make additional purchases. However, winning back these customers can be extremely valuable, since the cost of new acquisitions can be much higher than the cost of re-activating someone who is already interested in your products, and customers who make repeat purchases are much more likely to continue purchasing from your brand.