Case Study – Customer Churn Prediction

Industry

Apparel Retail Group

Function

Customer Analytics

Business Challenge

A major fashion retailer in the Middle East with over 50 stores in the UAE faced high customer attrition. A campaign-based program was needed to reduce churn among core customers essential to the business.

Project Objective

Reduce customer attrition through targeted campaign interventions.
Identify and retain key customers crucial to the business.

Approach & Solution

Developed a churn prediction model to identify customers with varying propensities to churn.
Segmented customers based on their likelihood to churn and their future spending potential.
Designed and executed targeted campaigns throughout the year, offering tailored incentives to high-risk, high-value customers.

Project Outcome

Transaction counts and revenue increased above average during each campaign intervention.
Regained a significant number of customers who were predicted to churn, resulting in cumulative spend in the millions.
Achieved over 5% response rate from churned customers, generating substantial revenue from previously inactive accounts.