Service company

BOB Autowas

Plan

Interprice

Mission

Uncover the worst performing customer segment and reduce the overall churn rate

Introduction

BOB Autowas is a Dutch national B2C company that offers car wash services for customers. The company applies a hybrid business model which combines the subscription-based service model with the traditional service model. Currently operating in 21 locations, BOB Autowas has more than 15,000 subscribers and 80,000 regular customers. As a customer-oriented service provider, the company is committed to creating a friendly and high-standard experience for its clients.

Problem statement

Just like any other B2C business, achieving high customer satisfaction and low customer retention have always been on the agenda for BOB Autowas. Despite Year-over-Year growth and profitability over the last few years, the company’s customer churn rate was around 4.6% per month. Due to scattered client information, BOB Autowas was unable to identify which customer segment was performing poorly and therefore tailor their engagement approach. Hoping to increase the revenue share generated by its subscription-based model, BOB Autowas aimed to retain its subscribers while expanding the customer base. To achieve this, the company first needed to have clear customer segmentations so that it could execute corresponding targeting campaigns. To fight churn and expand its current customer base, BOB Autowas was in need of a retention solution, that’s when they discovered Churned.

“Reduce subscriber churn and identify segments.”

Retain existing subscribers while attracting new ones
Identify customers with different needs

Our strategy

Due to scattered data, BOB Autowas was not able to derive valuable insights from the existing database to understand why certain customers cancel their subscriptions. To help the company overcome this barrier, we first integrated all customer data from different platforms into Churned AI engine and created a unified dashboard that has real-time customer insights. Important metrics, such as customer health scores, key churn factors, and churn risk rates were essential to help BOB Autowas understand how churn rates of various customer segments differ from each other. This implementation saved the company from time-consuming and repetitive manual work, such as categorizing customers and searching for specific numbers. Further, by leveraging the machine learning power, BOB Autowas was able to identify the effectiveness of the carry-out marketing campaigns, and how these campaigns affect churn rates in the long run. For example, our solution demonstrated that even though offering a free one-month subscription attracts many new customers, 70% of these customers were lost over the subsequent six months. BOB Autowas needed precise data-driven insights to drive retention actions instead of “intuitions”, and Churned helped them achieve that. These insights not only enabled BOB Autowas to uncover the actual effects of their marketing actions but also predict the customer lifetime value of the newly acquired clients. In addition, we worked with BOB Autowas to set up A/B tests in their active campaigns which target customers in the high-risk segments and optimize their strategy to minimize churn and maximize retention. We were also proud to be able to incorporate our analytical results for BOB Autowas into the Google BigQuery environment and feed Active Campaign, a marketing automation tool with churn predictions.

The results

  • Reduced average monthly churn rate from 4.6% to 3.5% (relative to a decrease of 23.91%).
  • Implemented an accurate churn prediction model which achieved an accuracy rate of 92%.
  • Increased the number of active subscriptions by 26%.

Curious what we can accomplish together?

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These experts worked on this case

Francisco Blasques

Founder & CDSO

Michiel Doornenbal

Founder & CEO

Kerim Karatas

Data scientist

Our happy clients

CEO

Johan Arensman

“Fortunately, our customers are very loyal. Sometimes there is unavoidable churn, but sometimes the reasons are less clear and churn could possibly have been prevented. Churned helps answer this. Thank you for the impressive work. Your results and analysis are the tools to further improve our customer success in the coming year.''

CEO  

Boris Blijham

''Together with Churned we’ve gained valuable insights into our customers and integrated those into marketing automation which resulted in a lower churn rate and in a higher customer lifetime value."

CEO  

Pieter Duijs

"Thanks to the product recommendations of Churned, we achieved automated personalization that increased the average order frequency, average order value and more returning customers."

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