A. diagnostic
B. descriptive
C. prescriptive
D. predictive
Explanation:
What is Customer Retention Analytics?
Customer retention analytics provide predictive metrics of which customers may churn, allowing businesses to prevent this from happening. Let us understand this by an example, by using customer retention analytics, companies can reduce churn and increase profits, as evidenced by a McKinsey report suggesting that extensive use of customer data analytics can drive profit. Customer retention metrics, including the customer retention rate, are used to measure the likelihood of retaining and attracting customers to a business. This is how data analytics helps in customer retention.
Descriptive Analytics
Descriptive analytics provide you with granular insights based on historical data. This includes tracking past purchases, customer complaints, customer service reviews, and more. In order to implement descriptive customer retention analytics, your cloud engineers would need to make sure all customer data is on-premise and up-to-date and backed up on a regular basis. Because it uses historical data to create retention strategies and personalize customer experiences, all historical data must be accessible for analysis.
Incorrect:
* Predictive Analytics
This works in tandеm with dеscriptivе analytics, which allows you to forеcast the behavior of your customers based on past data. This allows you to prеparе for specific customеr intе ractions and improv е customеr rеtеntion. For еxamplе, you can usе historical transactions to prеdict how likely a customer is to rеnеw their subscription at a music plan. Thе nеxt timе that customеr walks into thе studio, your staff will rеcеivе an alеrt to offеr additional incеntivеs to pеrsuadе thеm to rеnеw.
* Prescriptive Analytics
Prescriptive analytics finds solutions based on insights from descriptive analytics. For example, you can collect data about remedial solutions to improve retention and see how well they performed. Prescriptive analytics forces you to retrospectively evaluate all strategies to improve them. For example, a bank might use Fraud Detection. An algorithm evaluates historical data after making a purchase to see if it matches the typical level of spending. If it detects an anomaly, the bank will be notified and will recommend a course of action, such as cancelling the bank card.
* Diagnostic Analytics
Diagnostic analytics involves the collection and examination of data pertaining to a particular issue or occurrence in order to comprehend the underlying causes. Consider a scenario where a fitness app, GymFit, observes a significant drop in user engagement during a specific period. Unraveling the factors contributing to this decline becomes the focal point of diagnostic analytics. In this context, GymFit delves
into the data to uncover reasons why users might be disengaging, such as changes in workout preferences, dissatisfaction with features, or scheduling conflicts. Through careful analysis, GymFit identifies patterns and root causes behind the drop in user engagement. Armed with this knowledge, the fitness app can then implement targeted improvements, addressing concerns and enhancing the overall user experience to prevent further disengagement and attract new users.
Reference: https://emergingindiagroup.com/data-analytics-for-customer-retention/