Customer Analytics Case Study

Reduce Customer Churn and Encourage 2nd Visit for First Time customers of a Mid-Western Casino

  • Background

    • A mid-sized casino the mid-west was experiencing poor repeat visits of first time visitors coupled with increased churn of their repeat customers

    Approach

    • Score all new guests following their first visit - What is their likelihood of returning 2+ times within 12 months and spending at least $100?
    • Each new customer has a scores of their likelihood to repeat visits
    • Developed another model to score customer churn probability
    • Each repeat customer has churn probability score
    • Developed both models based on logistic regression
    • Used model drivers to recommend media, offer and creative

    Results

    • First time Visitors’ retrial increased by 20%
    • Reduced customer churn by 15%
    • The above two aspects contribute to $750K/year in incremental revenue