Business Analytics for Sales and Marketing Managers: How to Compete in the Information Age

CREATING COMPLEX INFORMATION AND WARNING SYSTEMS

If you have used the decision tree in the beginning of this chapter (Exhibit 6.1), you have been directed to this section because you have indicated that you want to start using churn prediction and integrating it into your business intelligence systems. To a large extent, what is formulated in this section can be seen as an add-on to what is presented in the last section, where pop-up systems and marketing automation were used to execute churn prevention campaigns. This section also explains how churn prediction or early-warning systems can be implemented for customer scorecards and to set up feedback mechanisms within your organization.

A customer scorecard is a report that sums up what has been delivered to a customer on dimensions that customers believe are relevant, including whether what has been delivered is within the service-level agreements made with the customer. Customer scorecards also ensure a fact-based dialogue and long-term partnership between the two parties.

Feedback mechanism within your organization are necessary to ensure that service-level failures are reported to the responsible parties within your organization while also informing the responsible client manager.

Working with complex warning systems is most relevant in industries that create or deliver complex products or services on a continuous base. It might include a travel agency that on a daily basis provides travel arrangements to large corporations. ...