What is Churn Detection?
Every retailer knows that some customers stick around while others quit shopping at their store. However, it’s difficult to detect which customers have decided to shop elsewhere and which ones are simply idle.
Custora runs advanced customer modeling to detect specific shoppers who are fading away. First, Custora analyzes historical data to get a sense of what different types of shoppers “look like.” For example, some shoppers might only purchase around the holidays, some might purchase four times a year, and some might purchase every few weeks.
Our advanced Churn Detection modeling allows you to detect when specific shoppers are fading away. First, we analyze historical data to get a sense of the shopping habits of different types of customers. That allows us to see what it looks like when different types of shoppers heat up or go cold. For example, some customers might purchase ever few weeks, while others might only shop occasionally or on holidays. This insight lets you identify when specific customers deviate from their normal tendencies.
Churn detection enables more timely “winback” communication
Traditionally, retailers have followed a simplistic, one-size-fits-all approach when flagging customers as active or inactive. For example, a retailer might say that anyone who has not purchased for 90 days is inactive.
There are a few problems with this approach. First, for a customer who orders every week, waiting 90 days might be much too long! Second, for a customer who only orders once per year, reaching out with a “winback” campaign after 90 days is premature. Churn Detection alerts you when each customer starts to fade away so you can reach out with the right message at the right time.