Building a Customer Churn Analysis for Data Protection Software Company
Learn how the Aimpoint Digital team helped a data protection software company analyze and revive its customer churn to recover millions of dollars in lost revenue.
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The Challenge
A leading software company specializing in data backup and recovery solutions was losing an estimated $7M annually due to customer churn. Initial analysis showed that half of the churn was preventable. Although the company maintained steady data streams of real-time events, including telemetry data and customer usage metrics, the analysis of this data was only conducted once a quarter through batch processes. The infrequent processing of data meant many churn events were either missed or identified too late for effective intervention.
Our Approach
To address this challenge, the Aimpoint Digital team deployed Databricks as a central data platform, integrating all the company’s systems into a single source of truth. Our team merged customer data streams to create a comprehensive, cohesive dataset and incorporated a live stream of telemetry data to ensure real-time insights. We also implemented daily ETL (Extract, Transform, Load) processes for ERP and customer data to keep data updated regularly.
By combining these elements, we created dynamic data tables capable of maintaining consistently up-to-date information.
Our Decision Sciences team then developed a predictive model to ensure the model remained accurate and relevant by continuously retraining and updating. The team also created real-time alerts to automatically notify key decision-makers when a customer showed potential signs of churning.
Results
The automation of data ingestion and consolidation resulted in the creation of an enterprise data warehouse, which the client previously lacked. This opened numerous opportunities for advanced reporting, business intelligence, and application development.
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The automation process significantly reduced the amount of manual work required by the client’s team, freeing up resources for more strategic tasks.
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By effectively predicting and preventing customer churn, the client realized substantial financial gains, safeguarding millions in revenue that would have otherwise been lost.
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Key Takeaways
Aimpoint Digital’s strategic deployment of Databricks enabled our client to transform their approach to customer churn. Through real-time data integration, predictive modeling, and automated alerts, the client could identify and address churn risks promptly, leading to enhanced customer retention and significant financial benefits.
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