Churn Management via CRM


Every player is an individual with their own expectations and behavioural factors, henceforth requiring tailored and individualised actions which pre-empt the customer’s potential of churning and terminating their life cycle with your business.

Acting too late means that a certain loss in revenue is on the table, both in unseen revenue as well as marketing costs that would be required to acquire a new, replacement customer to fill the hole left by the customer who has now churned.

For the most part, customers have tunnel vision when interacting with your business and will always negate the costs you incur to service the individual in favour for a direct revenue based take on the situation.

This plays a direct influence on the player’s expectations and requires your absolute attention to be managed, as the longer it is left to be, the more impact it will have on your bottom line and the more impractical player expectations will become meaning churn is highly probable. One technique required to analyse and react to such is automated customer cost profiling, whereby varying methodologies are implemented for servicing such profiles in the most cost effective method possible.

Let us take the example of two players who meet differing cost profiles, yet who both at face value see themselves as €10,000 losers to your business. On one hand, we have player A, who never withdraws and has registered 10 deposits of €1,000 to our business in his lifetime whilst on the other hand we have player B who consistently deposits and withdraws, sometimes up to 10 times a day for months on end with cumulative assorted payment and retention costs associated with servicing such a player. Whilst player B may have lost €10,000 to the business and therefore holds the mentality and expectations of customer A, the reality of the situation is that the revenue tells a largely different story, with a discrepancy of revenue stemming from payment costs and retention rewards which in many cases may vary to the point that the customer is not profitable at all to the business as all revenue acquired has been depleted through the servicing of the customer in question.

Understanding such differences associated and structuring various customer cost profiles and reacting appropriately through the use of automated technological parameters helps maximise the profitable customer’s lifecycle while effectively managing cost efficiency and expectations from the get-go.