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Topic to
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“Chapter 4 Enhancing Customer Loyalty and
Retention”

Group Members:

Asuncion, Donalie

De Guzman, Raiza Jane

Esguerra, Alexandra

Martinez, Jamaila

Mañores, Angelica
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Subject: Customer Analytics
ADELINE
Course: Bachelor of Science in Office Administration
Professor: Mr. Ian Emmanuel Arsolon
Semester/Year: First Semester, Second Year
Schedule: Tuesday, Thursday and Saturday
Time: 2:00-3:00 PM
Topics:
“Chapter 4 Enhancing Customer Loyalty and

Retention”

• Understanding churn

• Focusing on retaining valuable customers

• Operationalizing analytics

• Enhancing loyalty and advocacy

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Introduction:
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In ADELINE
this chapter which is the Customer Loyalty and
Retention we will learn on how important it is
especially in terms of business. Like if an
organization does not focuses on customer retention
but instead focuses on solely on expanding its
customer base, it is potentially losing out on repeat
customer. While the process of gaining new customer
or customer acquisition, is important, it is also much
more expensive. Maintaining them into recurring
customers is just as important of a process as gaining
new ones. We will also discuss the Churn and its
types, how to increase customer retention, the 3 types
of operationalizing analytics, the predictive modeling
and the importance of Growing customer loyalty and
advocacy. It is short topic but we will learned a lot.
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Presentor #1
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Asuncion, Donalie
CUSTOMERS
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 Customers
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product information. Previously, customers depended
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on the advice of a salesperson or on their limited
personal network of friends and family. They can
now find most of the information they need online
without ever talking to a salesperson.
 They can shop in the store, find the best price,
discover coupons with their mobile device, and
receive their products at their homes the next day –
all without an organization’s directed input. This puts
more pressure on marketers to employ tactics that
create loyal customers and decrease churn.

CHURN
- Refers to
the percentage of customers you lose in a given
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timeSAINT
OF period. Decreasing churn or attrition is a top
focus in today’s competitive climate; no one wants
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to lose customers to competitors.
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Presentor #2
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Mañores, Angelica
Coping with Customer Churn
 Customer loyalty is hard to come by given the
fluctuations in the economy, increasing competition
from domestic and global companies, advances in
social media, and a fickle customer base. The
customer now drives the relationship and expects the
organization to provide an authentic interaction, not a
generalized “push” advertisement.
 If a customer suspects that she’s not getting the
service she deserves, she can tell her followers on
social media platforms like twitter and facebook.
Organizations need to monitor social media and be
transparent about problems with their products.
Losing a customer is significant because it has a
direct impact on the bottom line. Just a small
improvement in customer retention rates can yield a
huge increase in profits.
 But what actually goes into customer retention? It’s a
combination of understanding customer needs and
delivering offers that resonate. Without the right data,
trained employees, and automated programs serving
up the right offers, you’re fighting a losing battle.
 The key is being proactive so you aren’t putting out
fires and trying to save aggravated customers who
may already be lost or customers that have a low
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value to your business. Let your competitors
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have the people that are resource drains at
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minimum profit levels. Customers have option
to go elsewhere, and they will if they’re
unsatisfied; that’s why it’s important to focus on the
customer and not just on the product.

Impact of Customer Churn:

Customer churn has a big impact on your revenue. It
is generally thought to cost five times more to gain a
new customer than it costs to keep an existing
customer, and research out of Bain and Company
shows that boosting your customer retention rate by
just 5% leads to a profit increase of 25% to 95%.
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OF SAINT Types of Churn
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There are four (4) different types of churn:
customer churn, revenue churn, gross MRR churn,
and net churn. A low churn rate improves your MRR,
customer lifetime revenue, and customer retention rate. A
good monthly churn rate for SaaS businesses is below
1%.
• CUSTOMER CHURN
- Is the percentage of customers who cancelled their
subscriptions with your business within a given period.
• GROSS CHURN RATE
- Known as the gross MRR churn rate, this metric is
the percentage of total monthly revenue lost from contacts
cancelled by your users. It includes any money lost from
both downgrades and cancellations.
• REVENUE CHURN
- Revenue churn, or MRR churn, is a measure of how
much MRR your business loses from existing customers
in a certain time period. It includes users downgrading
their plans.
• NET CHURN RATE
- The net revenue churn rate gives you the percentage
of revenue that is lost from downgrades and cancellations
after accounting for the expansion MRR generated from
existing customer.
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Precentor
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Esguerra,
ADELINE Alexandra

CUSTOMER RETENTION:
 Customer Retention is the
collection of activities a
business uses to increase the number of repeat
customers and to increase the profitability of each
existing customer. Customer retention strategies
enable you to both provide and extract more value
from your existing customer base.
INCREASING CUSTOMER RETENTION:
Increasing customer retention is all about being proactive
instead of reactive. With customer analytics, you can
 Immediately spot small problems that could
become large ones through anomaly detection.
ANOMALY DETECTION – Identifies data points
that are significantly different from the rest (in the case
of churn, determining behaviors that fall outside of the
desired norm).
 Target those customers at risk of defecting and
score them on their propensity to churn.
 Deliver a timely targeted retention offer to get
customers back on track.
 Track and report success of retention efforts.
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Presentor
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De Guzma, Raiza Jane
ADELINE
Customer Analytics:
 Customer Analytics enables you to identify the
customers who need attention and those who should
be “managed out” without requiring staff to make
that identification and decision.

Prioritized your retention efforts. For those high-value

customers who are at risk of defecting, execute an
outbound health check that matches up the appropriate
call center representative to each individual customer’s
needs.
OPERATIONALIZING ANALYTICS
TO MAKE BETTER DECISIONS

- One of the most significant changes in consumer

behavior in the Internet age has been the 24-hour
nature of maintaining customer relationships. Online
shopping fueled by social media interactions means
it’s more important than ever for your organization to
be prepared to react appropriately to each customer as
an individual however you happen to be
communicating web, call center, social media, or
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mobile device. These interactions are all
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guided by the intersection of two main
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decision-making engines.
- Organizations are increasingly adopting
predictive analytics and adopting these predictive
analytics more broadly. These models are
increasingly used in real-time decision-making and
in operational, production systems.
OPERATIONALIZING ANALYTICS HAS THREE
ELEMENTS:
1. A collaborative environment and shared framework for
problem definition to ensure that the analytics created are
solving the right problem.
2. A repeatable, industrial-scale process for developing
the dozens or even thousands of predictive analytic
models needed.
3. A reliable architecture for deploying and managing
predictive analytic models in production systems
What is Predictive Modeling?
- Predictive modeling is a method of predicting future
outcomes by using data modeling. It’s one of the premier
ways a business can see its path forward and make plans
accordingly.
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What
is a
churn
model?
- A churn model is a mathematical representation of
how churn impacts your business. Churn calculations are
built on existing data (the number of customers who left
your service during a given time period).

Presentor #5
Martinez, Jamaila

“Growing customer loyalty and advocacy”

Customer Loyalty VS Customer Advocacy*
 Customer Loyalty – A loyal customer will return to
a brand.
 Customer Advocacy – Will evangelize for your
brand.
Smarter organizations are realizing that some of the time
they spend retaining customers could be better spent
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turning loyalists into advocates. They quickly realize
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that brand exposure is exponentially increased by
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building advocates. In the age of social media, these
organizations focus on finding
 Customers with high influence
 Patterns that identify influential behavior
 Members of a network that connect other
influencers.
The value of SNA (Social Network Analysis) is that it can
also uncover relationships and patterns that are difficult to
see if they aren’t mapped. For example, people may not
contribute in a substantial way monetarily; however, they
may wield significant power based on their relationships
to influencers. After you’ve determined who these
influencers are, you can target them for special treatment.
Customers are increasingly distrustful of traditional
marketing messages and increasingly placing more and
more trust on peer recommendations. Turning a satisfied
customer into an advocate is key to enhancing brand and
customer loyalty.