Customer Retention for a health insurance company
A healthcare insurance company wanted to develop a customer retention model in order to reduce the potential attrition cases. The client has been targeting their customers with promotional messages, emails, adverts etc. but this has not been able to drop the attrition rates. So, the client needs to understand the major drivers of the attrition and how can these drivers be used in targeted promotions.
R, SQL, Excel and QlikView (for visualization)
The major challenge here was to identify the existing customer behavior, and the identify the drivers that resulted in customer attrition. This was achieved by segmenting customers into different groups based on the product type, payment plans etc. In this way, we were able to understand the specific customer behavior and the existing promotional strategies. Next, we used two different model types to predict the customer retention, i.e., survival analysis models and logistic model and the best one was chosen based on the evaluation metrics. Finally, after identifying the key drivers of attrition and potential attrition customers, we also recommended customizing the targeted promotions based on the customer behavior in order to achieve better retention rates.
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