Sentrana Model Provides Insight into Customer Retention
Today Sentrana announced the development of a quantitative model that enables foodservice distributors to identify which customers are most likely to stop purchasing certain products within the next three months. Developed by Sentrana’s quantitative modeling team, the Customer Retention Model predicts which customers are most likely to stop purchasing certain types of products so that action can be taken to retain their business.
Customer churn results in significant opportunity costs in the form of lost sales as well as considerable sales costs (in time and effort) to win back lost business as well as acquire new customers to replace those that have left. By identifying which customers are likely to stop purchasing prior to their defection, distributors can save time and money by taking preemptive action to retain their at-risk customers. Sentrana’s Customer Retention Model is able to identify those customers who are likely to stop purchasing from major categories, such as beef and other highly profitable categories, so that the sales associates can take steps to maintain the business of those customer-category combinations.
Predicting customer churn is especially important in the foodservice industry where distributors often have slim margins. “Once a customer’s business is lost, it takes significant effort on the part of the salesperson to win back that business,” said Principal Scientist Dr. Liuxia Wang, Ph.D. “By identifying those customers who are at a high risk of switching to competitors, the salesperson can take immediate action to retain that business and save the distributor a lot of money,” added Wang.
As it is important for distributors to maximize the profit from their customers, the Customer Retention Model provides another tool for increasing sales force efficiency and maintaining revenue.
Headquartered in Washington, DC, Sentrana helps business leaders holistically coordinate their marketing, pricing, product mix and sales activities to drive demand for their products and services with the data and capabilities they already possess. The Sentrana Precision Sales & Marketing Cloud allows sales and marketing teams to easily execute precise actions at an individual customer and product level to drive growth and profitability. By providing precise actions at the most granular level, we enable our clients to customize their product and service offerings to the unique preferences and needs of each customer in alignment with enterprise performance objectives.