Press Release
Inchcape Hong Kong, Singapore, Peru, and
Australia launch Aftersales Churn Prediction
Algorithm to increase Service retention rates by
identifying and targeting customers at highest risk
of leaving our Service business
07 January 2021 13:00 SGT
Inchcape Hong Kong (Toyota & Lexus), Singapore (Toyota, Lexus & Suzuki),
Inchcape Peru (BMW) and Australia (Subaru) today announced the launch
of an Aftersales Churn Prediction Algorithm. This product will increase Service
retention rates by allowing the Aftersales business, for the first time, to
proactively identify and target customers who are most likely to churn from
our service businesses, and develop strategies to retain them. This predictive
analytics solution was developed in-house by the Data Analytics Platform
(DAP) in partnership with our Aftersales teams.
A common challenge for Aftersales teams trying to increase Aftersales
retention is a lack of data-driven understanding of what drives Service
customers to leave us, and knowing which customers are most at risk.
Inchcape’s proprietary Aftersales Churn Prediction Algorithm helps solve this
problem by providing machine learning based predictions on how likely a
customer is to leave our Service business. The algorithm also provides ‘reason
codes’ for its prediction across factors including distance, warranty expiry,
pricing & discounts, and vehicle data.
“We are genuinely excited by this Aftersales Churn prediction model.
For the first time, Aftersales can now have a data-driven and scientific
prediction on churn, allowing us to proactively intervene rather than
reactively rescue like we used to after a customer has churned. With
the predictive model, we will now have the power to pinpoint high-risk
customers in advance, and manage intervention spending more
effectively. In a time when the conventional Aftersales business model
is challenged by many disruptive trends, this predictive model can
become a powerful tool to help us strengthen our loyal customer base
for the business and in return, better Aftersales retention and higher
profitability”
Alvin Lee, Aftersales Director, Greater China
By understanding the needs of our customer proactively, we can improve the
trust our customers have on us allowing them to service with us throughout
the vehicle’s lifetime. Inchcape businesses are now using the insights to
contact at-risk customers and improve retention.
“The aftersales churn prediction model has been an absolute success
in the Australian Business Development Centre. The insight it provides
identifies who is at risk and where we need to shift our focus. Customers
are contacted through the outbound churn campaign and feedback
is obtained directly from our customers providing insight into the
underlying issues that have driven the churn prediction probability %.
The feedback provided by our customer is then used to understand the
underlying issues which are impacting our customers and profitability,
allowing us to focus on corrective actions to improve our customers
experience and retain our customer base. The churn prediction model
is now an imbedded tool in our BDC and has had a positive impact on
customer retention and aftersales profitability”
Craig Cairnduff, Franchise Director, Australia
The Churn Prediction algorithm will be deployed to more businesses
throughout 2022 and the results integrated into Salesforce to streamline the
targeting of at-risk customers.
Contact:
Ram Thilak
Global Head of Data Science
Inchcape Plc