Start-up Custora unleashes predictive analytics for customer retention

Start-up Custora unleashes predictive analytics for customer retention

Software-as-as-Service start-up Custora has come up with predictive analytics software that is aimed at boosting the customer retention levels of online retail websites.

The US firm, which is backed by seed funding provider Y Combinator, enables organisations to analyse order logs and distinguish between those customers that have not placed an order for a while and those who have gone for good.

It also manages email campaigns to try and keep customers engaged. For example, individuals that have been identified as being about to take their business elsewhere are automatically sent promotional messages. Specific incentives are also recommended for repeat customers and those that the retailer is trying to reclaim.

Jon Pospishchil, the firm’s co-founder told the Travolution website: "Our software analyses transaction patterns to get a pulse on how different customers behave. Using that understanding, we give individual predictions about what we expect from each customer over the next two years."

Historical transaction patterns are also matched against the behaviour of new customers when they sign up, which means that the software can project their likely activity too, he added.

Custora has already signed up 12 customers and claims to offer predictions that are 100 times more accurate than simple marketing approaches and nine times more accurate than more sophisticated ones such as recency, frequency and monetary tactics.

According to the TechCrunch website, non-retail customers, including Salesforce.com, Foodzie and GetSatisfaction are also using the offering to try and determine which users of free software are most likely to convert to paid options and what kind of incentive would be most likely to encourage them to do so.

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