Success Story: Fatso
Predicting the exact point a customer will cancel, saved $70,000 a year
The One Thing
Fatso, an online movie delivery service, works on a subscription basis for its customers. Churn and cancelling customers is a natural part of a subscription service's lifecycle. However, to get their business running leaner, the Fatso team realised they needed to understand this behaviour much more effectively.
If Fatso could identify the trigger points of a customer's disatisfaction, they could preemptively avoid those points to keep the customers engaged for longer.
$280K saved revenue over 4 years.
Fatso’s one thing, was to understand which combination of moments, in a customer’s lifecycle, significantly contributed to them leaving the service.
The Delft team used basic customer behaviour data, and looked at each customer's on-site patterns as well. Adding the warehousing and product delivery performance to the mix, the team now had a full picture of what each customer personally experienced while on the service.
25% churn from high-risk customers.
Delft pinpointed the 4 main areas of the business, which, if the customer became disengaged, or had a certain portion of negative experiences, would likely cause them to quit the service.
The Fatso team now had the exact moment a customer was likely to leave. Better still, they knew who these customer were 8 weeks before customers actually cancelled. Delft had created a predictive tool which allowed the Fatso team to intervene with offers, phone calls, emails and other touch points, to personally engage each customer again.
Focused the business on 4 key areas.
Now, the Fatso team has an automated dashboard which allows them to see both the number of ‘high-risk’ customers on the service, and, whether their interventions are having the same affect of keeping them on the service.