![case study](https://cdn.quantiphi.com/2024/02/37c7305c-cpg-banner.png)
Churn Prediction Model for CPG Manufacturer and Distributor
Retail & CPGBusiness Impacts
Data driven identification of churn factors
Enhanced customer lifetime value
Significant increase in retention rates
Customer Key Facts
- Country : United States
- Industry : CPG
Developing a churn prediction model to identify consumers most likely to churn
The customer, an American wholesale manufacturer, and distributor of bakery ingredients and products wanted a system to identify consumers who were more likely to dissociate with the brand so they can take preventive measures.
Challenges
- Limited data availability
- Inconsistent variables
- Weightage of unidentified factors affecting retention
- The untuned model resulting in reduced accuracy
![](https://cdn.quantiphi.com/2024/02/36b5b791-cpg-case-study_challenge.png)
Technologies Used
Google Cloud Platform
![Google Compute Engine](https://cdn.quantiphi.com/2023/04/7e033202-compute_engine.png)
Google Compute Engine
![Google BigQuery](https://cdn.quantiphi.com/2024/02/da18ec97-bigquery.png)
Google BigQuery
![Google AI Platform](https://cdn.quantiphi.com/2024/02/eac04aab-google-ai-platform.png)
Google AI Platform
![Google Ads](https://cdn.quantiphi.com/2024/02/eb6c96ab-google_ads_logo_icon_171064.png)
Google Ads
![Cloud Storage](https://cdn.quantiphi.com/2024/02/321aa23a-cloud-storage.png)
Cloud Storage
![Cloud IAM](https://cdn.quantiphi.com/2024/02/bed8ed9b-cloud-identity-access-management.png)
Cloud IAM
![Cloud Monitoring](https://cdn.quantiphi.com/2024/02/7df42292-cloud_monitoring.png)
Cloud Monitoring
![Cloud Logging](https://cdn.quantiphi.com/2023/04/0e942db2-logging.png)
Cloud Logging
![Vertex AI](https://cdn.quantiphi.com/2024/02/8119a4c3-vertexai-e1656078086129.png)
Vertex AI
Churn Analysis Model for an American Wholesale Bakery Goods Manufacturer and Distributor
Solution
Quantiphi segmented customers into various buckets through RFM analysis and developed a churn model which will help them understand the segment of customers most likely to drop off along the way.
This helped the client devise mitigation plans for factors associated with each segment.
Result
- Data-driven identification of churn factors
- Enhanced customer lifetime value
- Increased retention rate