Challenge:

In business today, it costs significantly more to acquire a new customer than it does to retain them. From the marketing initiatives to attract and acquire qualified leads to the onboarding of a new customer, the time and money invested can be costly. But what can be even more costly is when a customer is lost. In the US, the cost of losing a customer is at an estimated $1.6 trillion. In Canada, customers are even less forgiving and thereby even harder to re-acquire. Once a customer is gone, they are gone for good.

As a non-profit, membership-based organization, most of the client’s services are affordable — and many are free of charge. Despite a booming economy, the client saw a decline in their membership renewal. The client approached ISM Canada to analyze their existing data to find out which members were at risk of leaving, and what could be done to retain them.

Solution:

Using the client’s existing data from the past 10+ years, ISM Canada built a predictive analytics model centered around customer retention. Using the insights from this model, the client was able to easily make data-driven decisions. With the meaningful insights pulled from data they already had at their disposal, the client could make more informed decisions regarding its at risk members.

Result:

Just a 5% increase in customer retention can lead to 25-95% increase in profit. With that said, the client was able to retain almost 60% of the members who were at the risk of leaving. Partnering with ISM Canada and leveraging the power of their existing data helped this client to develop effective, proactive business solutions to boost customer loyalty and successfully retain more of their existing members.