DIY retailer
FOCUS
Commercial Team Enablement
QUESTION
How do I ensure that my sales & marketing function is spending their time on high-value activities?
BENEFITS
Deeper customer understanding
Increase in lifetime value
Decrease in churn
The Challenge
A DIY retailer wanted to understand how to increase lifetime value.
Our Solution
We built a churn model that helped identify, with 97% accuracy, how likely a customer was to churn over the next 12 months and a segmentation model to break down customers into high, medium and low-value groups. With the help of their marketing team, we then tested various retention incentives across these groups to determine the most effective ones for retention.
Impact
Our initiative delivered a 7% decrease in churn, estimated at £13 million in incremental sales.