Using Customer Grids to defect customer defection early

In Repeat Customer Insights you can use the Customer Grid as a customer defection early-warning system.

Let's say you compare your Customer Grid to your past performance and see this in your defection customer segments:

Customer Grid showing defections over time

This says a lot about the store

  1. Loyal customers have shifted out to other segments (Loyal segment)
  2. The most loyal customers have defected (Defected Loyal segment)
  3. A large number of customers are about to defect (Defection Risk segment)
  4. Less customers are purely neutral

Whenever any of the four defecting segments are increasing, that's a symptom of a problem. In this case some customers moved out of Defection Risk Loyal but since they match the Defected Loyal, that's a clear sign they actually defected.

Some good news is that the Defection Risk segment might be worth saving. Contacting them with an anti-defection campaign could pull them back to Neutral and other positive segments.

Repeat Customer Insights takes these Customer Grid snapshots every month automatically for you. That can give you historic trends that you can't get with regular customer segmenting.

Eric Davis

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Topics: Customer behavior Customer defection

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