Stratum gives Sales and Marketing Managers a helicopter view of customers with the highest current and future potential revenue value. Using Machine Learning, Stratum predicts the future behaviour of your customers, recommending intervention dates so you can optimise marketing resources and sales strategies.
Data-driven Customer Segmentation
Accounts are automatically classified into a ‘Customer Segment’ such as ‘Champions’ (your best customers) or ‘Lost’ (customers who have stopped buying). Stratum uses a customers Churn Probability rating and past / future revenue, to define which segment they fall into.
Once you have uploaded your most recent transactional data file. Stratum’s Machine Learning algorithm's dynamically cluster your customers into intuitive segments to guide sales and marketing activities.
|Champions||Champions are your VIP Customers, they don’t get any better than this! Assign a top customer relations manager and keep these customers happy.|
|Loyal customers||Loyal Customers need premium services, more recognition and for some, a 1-1 Key account advisor in order to make them Champions.|
|Can’t Lose Them||These customers are too important to lose, investigate why these once Loyal and high value customers have recently changed buying patterns and utilise retain strategies.|
|At Risk||At Risk is customers showing signs of a future decline in buying patterns, try win-back and retain strategies to avoid increasing the risk of losing these customers.|
|Potential Loyalist||Potential Loyalist’s have strong signs of growth potential, with recent changes in behaviour for old customers as well as new arrivals. Try reinforcement activities and nudges to nurture these customers.|
Promising customers are those that are showing signs of future growth, they can be new customers or old customers who have come back alive. Try reinforcement activities and nudges to identify Potential Loyalists.
|Need Attention||Need Attention are customers whose buying behaviour is drifting away, a change in marketing and sales activities may be required to re-activate these customers.|
|About to Sleep||Infrequent and low value buying activity signifies these customers as About to Sleep. Try automated activities to re-activate customers.|
|Lost||What can you learn from Lost customers and accounts, how can you avoid losing similar customers in the future? Are any of these opportunities to win-back?|
Churn and retention
Churn is a measure for the likelihood a customer has ended their relationship with your business and provides a quantitative metric of how loyal each customer is. Stratum presents churn as ‘Churn Probability’, a data-driven metric that reacts in real-time to your customers buying habits over time.
Churn scores are calculated using RFM metrics to quantify the buying behaviour of customers over time.
0% = ‘Alive’, this is an active, healthy and loyal customer.
100% = ‘Dead’, this customer has churned and no longer an active customer.
Retention refers to your businesses ability to ‘retain’ its customers and is a business critical measurement of sustainability. Research done by the inventor of the net promoter score (Fred Reichheld), shows increasing retention rates by 5% “produces more than a 25% increase in profit”, as returning customers tend to buy more from a company over time and act as ambassadors in referring new customers.
Stratums ‘Churn Probability’ affords sales and marketing teams an additional layer of insight when deciding which customers to engage in Retention activities.
Customer lifetime value (CLV)
Customer Lifetime Value (CLV) is the predicted 3 year future revenue of a customer or customer base.