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Where Business Intelligence Comes Easy  Hussein AL-NATSHEH Founder & General  Manager Ciapple L.L.C. Customer Retention March , 2011
© Ciapple LLC 2 What is Ciapple? Ciappleenables medium-size Retailers in MENA and Europe and e-commerce companies globally to: Retain their profitable customers  Design targeted offering Ciapple solution analyzes the sales data and     discovers the spending pattern (buying trend)of the retailer’s customers
3  Problem Solving ,[object Object]
 Annual Average Profit/Customer = 100 USD
 Annual Company Profit = 5 M USDE-Commerce/ Retailer Case Study Atrisk Not resolved 30% Unsatisfiedcustomers 20 % Complain 5% Decline in Spending 50% Lost 30% Do not complain 95 % Satisfiedcustomers 80 % Retained 40% Ciapplediscoversat least 30% of silentunsatisfiedcustomers = 2800customers 1000Customers Retained = 100 000 USD Profit LostCustomers 50 % = Source: Response Tek Networks © Ciapple LLC
© Ciapple LLC 4 Customer Retention Value 20 USD/year Customers’ Life Value (CLV) = 5x Annuallost profit Cost to win back them (companies usually don’t) 150 USD/year 1000 Customers Annual 100 KUSD 500 K USD 1.5 M USD 1500 USD/year Source: Rob Yanker, Partner, McKinsey & Company Cost to retainthemwithCiapple Annual LOSS without Ciapple Averagecostto retainthemwithother solutions 10 K USD 50 K USD
© Ciapple LLC 5 Clustering Using the data that shows how much each customer spends on each product category, customers will be grouped (clustered) according to their buying behavior
6 Customer Retention : Customers who stopped spending  : Customers who still spending  : Predicted silent unsatisfied customer  © Ciapple LLC
7 Similarity Insights © Ciapple LLC
© Ciapple LLC 8 Chart Sample 	Customer Retention Web Application (Cloud Service)
Technical Requirements ,[object Object]
 If you also have the customers demographics, it will be better

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Ciapple Customer Retention Predictive Analysis Solution Intro

  • 1. Where Business Intelligence Comes Easy Hussein AL-NATSHEH Founder & General Manager Ciapple L.L.C. Customer Retention March , 2011
  • 2. © Ciapple LLC 2 What is Ciapple? Ciappleenables medium-size Retailers in MENA and Europe and e-commerce companies globally to: Retain their profitable customers Design targeted offering Ciapple solution analyzes the sales data and discovers the spending pattern (buying trend)of the retailer’s customers
  • 3.
  • 4. Annual Average Profit/Customer = 100 USD
  • 5. Annual Company Profit = 5 M USDE-Commerce/ Retailer Case Study Atrisk Not resolved 30% Unsatisfiedcustomers 20 % Complain 5% Decline in Spending 50% Lost 30% Do not complain 95 % Satisfiedcustomers 80 % Retained 40% Ciapplediscoversat least 30% of silentunsatisfiedcustomers = 2800customers 1000Customers Retained = 100 000 USD Profit LostCustomers 50 % = Source: Response Tek Networks © Ciapple LLC
  • 6. © Ciapple LLC 4 Customer Retention Value 20 USD/year Customers’ Life Value (CLV) = 5x Annuallost profit Cost to win back them (companies usually don’t) 150 USD/year 1000 Customers Annual 100 KUSD 500 K USD 1.5 M USD 1500 USD/year Source: Rob Yanker, Partner, McKinsey & Company Cost to retainthemwithCiapple Annual LOSS without Ciapple Averagecostto retainthemwithother solutions 10 K USD 50 K USD
  • 7. © Ciapple LLC 5 Clustering Using the data that shows how much each customer spends on each product category, customers will be grouped (clustered) according to their buying behavior
  • 8. 6 Customer Retention : Customers who stopped spending : Customers who still spending : Predicted silent unsatisfied customer © Ciapple LLC
  • 9. 7 Similarity Insights © Ciapple LLC
  • 10. © Ciapple LLC 8 Chart Sample Customer Retention Web Application (Cloud Service)
  • 11.
  • 12. If you also have the customers demographics, it will be better
  • 13. Generating bi-weekly table view shows the average monthly spending for each customer and his spending in the last month
  • 14. The table view could be in SQL, MySQL, or Excel format
  • 15.
  • 20.
  • 21. Hussein AL-NATSHEH Founder & General Manager h.natsheh@ciapple.com www.Ciapple.com Tel: +962 797 27 27 00