Retention & Churn Management / Adastra

Customer Insight & Marketing

Retention & Churn Management

Loyalty is earned not in good times when everything works, but when customers can run into issues. Hence, the loyalty of customers is dependent on your operational efficiency.

Do you run your services always without errors? If the answer is no, you should be thinking about retention processes and saving the customer in a time when they might be thinking about leaving to the competition.


The cost of acquiring a new customer can be higher than that of retaining a customer by as much as 700%.

An effective churn management process is a good tool to increase overall company profitability. To achieve this goal, however, you need to understand the value of your customer, their preferences and motivation as well as properly set-up the bottom line on how much costs an organization can spent to keep particular segments of customers on books. Effective set-up of retention campaigns requires deep analysis of historical data with a goal of:

  • Identification of endangered customer segments with similar characteristics
  • Understanding of preferences of each defined customer segment
  • Calculation of customer lifetime value and bottom line for retention costs
  • Definition of proper retention strategy and tools for each customer segment

Increasing customer retention rates by a mere 5% could increase profits by 25% to 95%.

Our Services

Portfolio Development Program

Definition of customer life stages, including preparation of development plan for each life stage of customer.

Churn Prediction Models

Preparation of statistical model defining segments of customers with higher likelihood of churn.

Proactive & Reactive Retention Campaigns Set-up

End to end definition and set-up of proactive and reactive retention campaigns aimed at offering customer waiver fees or non-public discount in a way that reduced chance of customer churning outweigh these costs.

The portfolio development program consists of plans for each individual life-stage of a customer. It’s not just about retention programs for leaving clients or clients that are predicted to leave, but also about preventing the will to leave your company. The best way to keep customers is to make them use your services and ensure they are happy doing so. This can be helped by loyalty programs, product bundling and onboarding strategies.

Example of a high level portfolio development program depiction:


Proactive & Reactive Retention Campaigns needs to be set-up for leaving clients or clients that are predicted to leave. Retention offer usually consist of a waiver of fees or a non-public discounted offer, ideally tied with product bundling. In either way, the retention offer yields costs off opportunity compared to a full product price. We need to make sure that these costs are outweighed by a reduced chance of customer churning. A precise financial evaluation can benefit from attrition and lifetime profitability models.