Company
Date Published
Author
Miguel Álvarez
Word count
1118
Language
English
Hacker News points
None

Summary

The utilities industry is facing significant challenges due to rising customer churn and increasing competition, with nearly 15% of domestic customers switching suppliers in the US and EU every year. Acquiring new customers can be 5-25 times more expensive than retaining existing ones, making it crucial for companies to focus on improving customer retention strategies. Spatial Data Science techniques are being used to capture spatial patterns that standard data science methods fall short in identifying, allowing companies like EDP Portugal to build a predictive model that can identify potential churners and provide insights into the drivers of churn. The model has been shown to have a recall of 70% and can be integrated into CRM platforms to enable personalized actions to retain customers. By retaining just 10.5k out of 300k churners, companies could potentially retain over $10M in annual revenue.