Industry: Healthcare

Empowering Nuffield Health Retention teams with pre-emptive churn mitigation measures and marketing interventions to avoid gym members' cancellation with NowVertical's churn prediction solution.

Benefits & Results

  • Significant drop in churn rates as predicted customers were engaged proactively
  • Enhaanced communication strategies led to better customer satisfaction and loyalty
  • More stable customer base reduced pressure on acquisition teams, leading to optimized acquisition spends
  • Improved retention directly contributed to higher and more stable revenue

Achieved a high retention rate of 11% over a period of three months based on churn identification and retention strategy defined by marketing teams, resulting in revenue 'savings' of £700,000

Background

Nuffield Health is a leading healthcare and wellness brand in the UK, running multiple facilities including private hospitals, fitness, and wellbeing centers. They envision providing a 'Connected health and wellbeing service' by offering an end-to-end range of health experts and services to cover all customers' health needs - physical, nutritional, or emotional, ensuring accessible and personalized care by their clinicians either face-to-face or through digital channels.

Challenges

Issue Identification: Nuffield Health's gyms lacked a comprehensive understanding of the underlying reasons for their high churn rate and the inability to identify potential churners to apply relevant marketing interventions

Issue Impact: High churn led to an annual revenue loss of £6 million and high investment in acquisitions due to lower customer retention, leading to overall high operational costs. This adversely affected long-term planning and resource allocation as the organization struggled to maintain a consistent customer base and annual revenue.

Solution

NowVertical developed a comprehensive churn prediction solution leveraging advanced data science techniques and predictive analytics to identify at-risk customers. Dashboard visualizations generated actionable insights for Retention and Marketing teams to take pre-emptive churn mitigation interventions to avoid gym membership cancellations.

Implementation

  • Data Collection and Integration: Gathered data from various sources including customer interaction logs, membership details, and service usage patterns.
  • Data Analysis: Utilized Python and AWS (Postgres) to process and analyze the data, identifying key indicators of churn
  • Model Development: Developed a churn prediction model using machine learning algorithms validated against historical data
  • Dashboards: Developed visualizations and reports to identify 'churn risky' gym members of each customer cohort
  • Actionable Insights: Generated actionable insights and recommended interventions to reduce churn such as personalized retention communications and personalized offer recommendations
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