Customer data platform for subscription based business models
Overview and Problem Summary
Companies such as insurance, credit cards, health clubs all utilize a subscription business model. Subscription business models have the notion of memberships.
There are multiple challenges associated with subscription models, most of which center around answering key questions about members and potential members:
- How many active members do we have?
- Who are our most valuable members and what are their characteristics?
- How do we increase spend during membership?
- How do we increase the average membership lifetime?
- Why do members cancel and when are they likely to do so?
The EC team developed cloud based full lifecycle member analytics platform.
The platform had four key components:
- Data acquisition – infrastructure to acquire, validate, cleans and merge member data
- Member model – a proprietary data model which allowed for tracking of members across their entire lifecycle, including the spanning of multiple memberships
- Analytics – an AI based system which generated current state and predicted values for key metrics such as member CLV, attrition rates, etc.
- Graphics – a dashboard and reporting engine which provided visualizations, alerts and reports across multiple channels
The member analytics platform supported a membership base over 700,000 members across 250 different locations. It allowed users to grow revenue by identifying attributes of high value members as well as opportunities for spend increases. It also reduced attrition rates by proactively identifying members at risk of attrition to allow for intervention.