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Predicting likelihood for renewal is the process of using data and machine learning to forecast the probability that customers will renew their subscriptions, contracts, or memberships with your business. This is crucial for businesses operating on a subscription-based or recurring revenue model, as it allows them to anticipate customer behavior, tailor retention strategies, and maximize customer lifetime value.
One of the significant challenges for businesses offering subscription-based services or products is predicting which customers are likely to renew their subscriptions. Without accurate predictions, companies risk losing valuable revenue and may struggle to retain their customer base. Traditional methods of renewal prediction often rely on manual analysis and lack the ability to leverage data effectively.
The challenge lies in accurately predicting which customers are at risk of churning and proactively addressing their needs to ensure retention. Without predictive analytics, businesses often struggle to identify and prioritize at-risk customers, leading to unnecessary churn and loss of revenue.
Shimoku's Renewal Prediction solution, powered by AI, offers a comprehensive approach to forecasting customer renewal behavior. By employing advanced machine learning algorithms, our solution analyzes historical subscription data, customer interactions, usage patterns, demographic data, and other relevant factors to predict the likelihood of individual customers renewing their subscriptions. This enables businesses to proactively identify at-risk customers and implement targeted retention strategies to maximize renewal rates.
Our solution changes the way businesses approach customer retention. By leveraging advanced predictive modeling techniques, we empower businesses to predict the likelihood of renewal with precision and confidence. Our platform analyzes historical data, customer interactions, and engagement metrics to generate actionable insights that drive retention strategies.
Utilize AI Scores to identify and prioritize accounts at risk of non-renewal.Anticipate potential non-renewal customers using predictive analytics, allowing for early intervention and cost-effective retention strategies. Utilize predictions to identify high-risk customers and enhance retention campaigns, driving improved success rates and maximizing ROI and customer lifetime value.
Craft personalized emails aimed at enhancing customer value through your product.Leverage predictive insights to personalize outreach strategies, ensuring targeted and effective communication that prevents churn. Make informed decisions about the right treatments for each customer, optimizing effectiveness and resource allocation.
Integrate predictions seamlessly into your CRM, marketing automation, and other third-party tools to activate potential non-renewal customers.
Uncover the signals influencing customers' churn behavior. Generate rapid predictions tailored to different definitions of churn and time horizons, adapting to evolving business needs. Understand the signals and reasons behind potential non-renewal on various days, such as day 30, 60, or 365, for effective proactive strategies
Improving customer engagement
Identify product champions
Engage at the right time
Customer satisfaction and enhance loyalty
Get started by uploading historical subscription data, including customer profiles, subscription plans, product usage data, past renewal behaviors, demographic and firmographic data, and historical payment data. Our platform will analyze this data to build predictive models that forecast customer renewal probabilities and extract actionable insights.
Once the Renewal Prediction model is trained, leverage the insights gained to prioritize and focus retention efforts on customers with the highest predicted churn probability. The model's output will provide a ranked list of customers based on their probability of non-renewal, accompanied by an explanation of the factors (drivers and barriers) influencing this scoring. This focused approach allows you to determine which accounts require immediate attention and devise strategies to enhance retention.
After the AI model generates a prioritized list of customers along with their renewal probabilities, these results can be seamlessly integrated into a dynamic discount prediction system aimed at boosting renewal rates. Customers identified with a high likelihood of non-renewal can then receive personalized discounts tailored to maximize renewal.
Retention efforts on customers with the highest predicted churn probability
Devise strategies to enhance retention
In the world of AI, the concept of Explainability has emerged as a core of trust and transparency. While AI models are incredibly relevant, their intricate architectures can often operate as "black boxes," making it challenging for users to understand their underlying mechanisms and decision pathways. Explainability in AI aims to demystify these processes, offering clear, intuitive insights into how algorithms arrive at specific outcome. This is not just about technical transparency but about building a bridge of trust between AI and users. Gaining an understanding of how AI models work will enhance your confidence in the system, encourage broader adoption, and ensure alignment with business goals.
Our solution provides an Explainability layer and transparent insights into the factors driving the model's predictions, allowing you to understand the key drivers influencing non-renewal behavior. By identifying the drivers and barriers behind renewal behavior, businesses can tailor their strategies to optimize customer retention, and maximize revenue.
At the core of our solution lies an Actionability layer that bridges the gap between data insights and tangible business outcomes. At Shimoku, we firmly believe that the true power of AI lies not just in understanding data but in leveraging it to drive meaningful actions within a company's operations.
With traditional analytics solutions, businesses often find themselves drowning in a sea of data, struggling to derive actionable insights that can drive real change. Our approach flips this paradigm on its head by not only providing valuable insights but also empowering businesses to swiftly translate these insights into concrete actions that drive monetization and efficiency.
Our solution leverages Generative AI technology to automate the creation of offers and discounts tailored for customers with a high likelihood of non-renewal. Gone are the days of generic, one-size-fits-all outreach. Our AI solution analyzes customer data and model outcomes to craft automatically hyper-personalized offers tailored to each individual which are then seamlessly delivered to them via email or other communication channels.
Seamlessly integrate our Renewal Prediction solution with your existing tech stack, including CRM systems, customer databases, and marketing automation platforms. Our platform is designed for easy integration, allowing businesses to leverage AI-driven renewal predictions within their existing workflows.
Empower your team to implement targeted retention efforts based on AI-driven predictions, ensuring timely and relevant interventions to prevent churn. With automated workflows and personalized outreach, businesses can effectively engage with at-risk customers and increase renewal rates. Our platform empowers businesses to take proactive measures that ensure long-term customer satisfaction and loyalty.
Start optimizing your Renewal processes today with Shimoku's advanced AI solution.
Join the hundreds of companies already leveraging the value of AI and increasing their revenue with Shimoku. Complete the form and discover how we can help your business.
