Market Nurturing Program Improves Retention by 26%
![2647256](https://lscmarketinggroup.com/wp-content/uploads/2021/10/2647256.png)
Client
A $13 billion US travel, entertainment, and hospitality reservation platform
![1193750](https://lscmarketinggroup.com/wp-content/uploads/2021/10/1193750.png)
Situation
This subscription-based subsidiary was struggling with retaining fee-paying users at their 12-month promotional contract expiry.
![3874656](https://lscmarketinggroup.com/wp-content/uploads/2021/10/3874656.png)
Problem
The company suffered from a 58% attrition rate after one-year introductory rate expiration and an insufficient allowable cost for new members to continue with current acquisition programs.
![668937](https://lscmarketinggroup.com/wp-content/uploads/2021/10/668937.png)
Solution
Apply a Bayesian statistical inference model to focus on current retained subscribers and ignore all defectors’ demographic attributes and purchase behaviors.
![637346](https://lscmarketinggroup.com/wp-content/uploads/2021/10/637346.png)
Results
The program improved retention by 26% overall and over 50% in the top performing deciles. This translated to a positive campaign ROI and a recalibration of the organization’s acquisition target market audience selection strategy.