How marketers can target high risk customers by identifying the characteristics that correlate with high sensitivity to a given intervention.
Eva Ascarza shares new research based on field experiments with over 14,000 customers that suggests that the traditional A/B testing churn prevention strategy used by marketers isn't as effective in reducing churn rates and maximizing ROI. The author argues that instead, firms should use A/B test data alongside customers’ behavioral and demographic data to determine which subgroup of customers will be most sensitive to the specific intervention that’s being considered. As such, they can easily target their campaigns at the most receptive customers to mitigate churn and boost ROI.