Recency for Customer Retention on Subscription Based Services |
The generic technique of recency analysis, has to be adopted to the different context of every Business: unique Customer lifecycle, product type. In this article we examine the important case of subscription based (or continuity) services. Such services involve the continuous usage by a Customer, often based on a contract. Common examples are: bank accounts, credit cards, fixed & mobile telecommunication services. These services are offered in highly competitive markets, characterised by high customer switching (attrition or churn) rates, which erode the profitability of those who suffer it.
|
