Online Web Research Services & Data Research, Data mining

For almost every business, the cost of acquiring a new customer exceeds the cost of retaining existing loyal customers. The first thing a business need to do is gather data to predict which customers will leave and which will stay. The business need to carefully choose the variables from its customer database and incorporate them in a single model for intuitive analysis.

Next, the business needs to figure out who are “loyal” customers. This is not a data mining issue but a business intelligence followed by a calculation. It has to construct a model to profile its loyal or profitable customers and unprofitable customers. This model can be used for customer retention and identify customers who are not yet profitable but might become so in near future.

You can also construct a model to foretell which of its profitable customers will leave. As in most data mining issues, identifying what data to use and how to collaborate existing data is much of the challenge in model development. Based on the results of this modeling, a business can identify some potential offers that can encourage customers to stay.

A business can provide their customers a higher-fee service with lots of value addition. It can then build models that would predict which would be the most effective offer for a specific user. The net result is a drastic improvement in business’s customer retention and allows it to save half of its money per month in customer acquisition costs.

Source: http://www.outsourcingwebresearch.com