When two business intelligence and quanti experts joined forces, they disrupted conventional wisdom by focusing on real users, not abstract algorithms
MIAMI, FLORIDA, USA, February 25, 2020 /EINPresswire.com/ — When Adi Asavaid and Marcelo Salup founded CEO Analytics they created a counter-intuitive company. Both hailed from the quanti side of business. Both were experienced in business intelligence and predictive algorithms. But both agreed on their focus in a single afternoon: Love. The love that keeps a customer coming back.
Interview with Adi Asavaid, Principal of CEO Analytics.
Q: Why focus on retention?
Adi: I’m an engineer and have worked in business intelligence all my life. Retention is by far the most efficient way to increase your revenues. When you focus on retention, you focus on profits.
Q: You’re referring to numerous studies that say that acquiring a client can be as much as 5 times more expensive than getting one?
Adi: Exactly. Your customers already love something about your business. We unearth that and help our clients increase retention, reduce churn, increase revenues.
Q: Which companies do you think should focus on retention?
Adi: In principle just about every company with customers, right? But especially companies that see hundreds or thousands of consumers daily. In those companies, even tiny losses have significant impact on revenues.
Q: Give me an example.
Adi: Take a company with 10 restaurants and yearly revenues of $500,000 per store. Losing even 1% of your customers per month, means losing slightly over 11% of your customers per year. So, you’d lose $500,000 per year.
Q: And that’s only for loss…
Adi: Yes, churn is a completely different matter, but also expensive. If, for every customer you lose you must replace them just to keep even, your acquisition costs never go down… and they also affect your margin.
Q: So what is your approach?
Adi: We combine lots of factors: a unique version of a sophisticated tool –Disassociated Conjoint Analysis—then predictive algorithms to figure out what customers really love and are eager to spend money on.
But, then we did something even more unique: we included marketing and merchandising factors to the mix. So, we can tell you what your customers truly love about you, then we can also tell you how to reach them more effectively.
Finally, we give our customers the ability to segment the data by dozens of variable, so they can develop a retention effort for different customers.
CEO Analytics can be reached at firstname.lastname@example.org and at www.ceo-analytics.com
Source: EIN Presswire