AI Churn Scoring

Introduction

Acquiring new customers can cost up to five times more than retaining existing ones. Customer retention is not only more cost-effective, but it also delivers better long-term returns for your business. But how do you determine whom to retain vs not?

That's where Chargebee's AI Churn Scoring comes in. Using advanced Artificial Intelligence and Machine Learning models, Chargebee analyses your billing & usage data and scores each customer across your customer base based on their likelihood to churn in the near future e.g. next 90 days.

Chargebee stores the churn score for all your active paying customers as attributes that help you build targeted segments and run more effective Retention engagements with them.

There are two out of the box attributes available to assess the churn risk of a customer:

• Churn Risk Score: A numeric value ranging from 1 to 100 that indicates a customer's likelihood of churning. The higher the score, the higher the likelihood of churn for the customer.
• Churn Risk Levels: A simplified interpretation of the score, categorized into one of three levels:
  • High Risk: Any customer with a churn score between 70 to 100 is flagged as a high risk customer.
  • Medium Risk: Any customer with a churn score between 40 to 69 is marked as a medium risk customer.
  • Low Risk: Any customer with a churn score 1 to 39 is flagged as a low risk customer.

Once enabled Churn Scoring is accessible within your Growth application in a couple of different places.

• Audience Module as AI recommendations: Here we automatically provide you with predefined template audience segments that can be duplicated to create your own custom audience segments by combining them with other important attributes.
  
• Retention dashboard as Churn risk levels widget: Here you can track & asses the overall churn risk associated across your customer base. You can either target customers in a play or preview the customers within each of the churn risk levels.
  

Creating audience segments with churn risk attributes

You can choose to create audience segments with the churn risk attributes and combine them with any other attributes available to create a play. These audience segments can then be used to target customers with personalised Retention offers to improve your Retention rates.

To create an audience segment using the churn risk attributes, follow these steps:

1. Navigate to the Audiences tab and click + New Audience.

2. Under Audience Definition, click Add Another Rule.

3. Select the Property drop-down and the churn risk attributes are denoted by the retention AI tag.

   

4. Proceed to define the Audience settings further and click Done.

Any audience segment that contains one or more churn risk attributes are also denoted by the Retention AI tag to help you easily differentiate them from other audience segments.

Targeting churn risk customers

Chargebee not only provides you insights regarding your customer risk but also lets you perform target intervention to mitigate those risks.

Targeting customers in a Retention play

The churn risk widget has options to directly target your at-risk customers in a play with Retention offers using plays.

To target customers based on the churn risk attributes in a play, follow these steps:

1. On your Dashboard, under Churn Risk Levels, simply click Target customers in a play for High Risk, Medium Risk, or Low Risk categories respectively.

   

2. You will be redirected to the play builder interface to create a churn prevention play. The Audience section of the play builder is automatically populated with a temporary audience segment as per the risk level chosen by you. Any audience segment containing the churn risk attributes are denoted by the Retention AI tag. Click Confirm Audience.

   

3. You will be redirected to the Audience definition screen with the churn risk level is automatically populated as one of the attributes. Here you can combine the churn risk attributes with other attributes such as MRR, plan, and so on to create powerful and enriching audience segments.

4. Click Done to save the newly created audience segment.

5. You will then be redirected back to the play builder interface with the newly created audience segment automatically populated in the audience drop down. You can use the View Audience Definition button to view or change the audience segment again.

   

6. Once you are done confirming the audience segment, you can proceed to set up the rest of the play.

You can also choose to create a new Retention Play using the Plays module.

This will require you to specify the target audience in the audience drop down. You can either choose from an existing list of audience segments or create one from scratch.

Targeting customers in cancellation flow

You can also target churn risk customers and personalise their cancellation experience. For example, you can give better offers to high risk customers and reduce offer exposure to low risk customers.