With economic development and social progress, supermarkets have become the main channel of everyday consumption of people. Retaining their existing customers in this fiercely competitive environment is the crucial problem that most supermarket enterprises are having to face now. All these enterprises have just one goal, to keep their customer churn rates as low as possible.
Gone are the days when one could walk into any restaurant in their neighborhood, order some delicious food, have some amazing taste experiences in a peaceful environment, and drive back home with a happy tummy. Thanks to the ever-growing human population and the dinginess in metropolitan cities, people now must reserve a table at a restaurant before arriving at the same. Well basically, a table reservation is an advance arrangement to reserve a table in any restaurant either using a phone call, personal meetup or online portals.
You might be wondering how car rental companies end up making money. Well, they buy cars in reasonable amounts and then make money by selling them for more than they paid. Just like any owner who rents out his home for tourists on vacation, when car rental businesses rent these cars out, they are merely covering the operational expenses while waiting to resell the vehicles at a fair price. Sounds crazy but this is the way such businesses have been operating for decades. Moreover, yes, that's the reason you might still be able to rent a car at $6.50 a day in Las Vegas sometimes.
Eighty percent of online users from India have made purchases from E-commerce platforms within the last thirty days. This huge number can be attributed to the fact that e-commerce brands are now an integral part of our ever-growing economy. However, this statistic also shows the brands just how many competitors exist to cater to all those requests. The e-commerce sector is now a substantially more crowded marketplace, each passing day adding more.
Say you are back after traveling from a long fun trip and you are busy recalling all those wonderful experiences you had. You might spend a couple of minutes recalling the car rental experience. But more often than not, you might end up forgetting it. You may notice that it’s not really a problem with the car rental industry being deficient in certain tools, technology or the workforce. The issue here would most likely be the mindset of the service providers who would rather approach this business as just an income earning service and not exactly something that can count as experience.
Though I come from the data science background, I am compelled to avoid
using word “Predicting customer churn”. Because “Prediction” is a machine
learning term and it tends to bring along the associated overwhelm for the
business executives. This overwhelm has been the number 1 reason why most
SaaS enterprises focus on adding new customers and tend to ignore the fact
that their existing customers are leaving them every month.
If You are the founder, senior management leader or head of sales for a traditional business that is being conducted online, then you are more likely to be wondering about strategies to acquire new customers constantly. According to Peter Krasilovsky, chief analyst at Local Onliner, SMBs are more aware of ways to spend on customer acquisition than retention.
Superficially, the title of the blog looks like an oxymoron. We immediately map the terms Research & Development with the Innovation. It is so much prevalent in our perception that innovation comes straight out of R & D, ready made, ready to be consumed and everlasting. But when you carefully look at the process of R & D, it is just an iterative process where you form a hypothesis, conduct experiment and test the theory with the obtained result. If the results are conclusive, then you get your innovation. But it's most often that you can be wrong. When you fail at the intermediate steps of the experimentations, you go back, re-formulate the hypothesis and test again. It’s called as rinse and repeat. This process demands the sheer amount of energy of the people involved and requires time to do that.