Losing Subscribers? Get To The Root Of Your Churn Rate Woes With Big Data In Marketing Analytics

Losing Subscribers? Get To The Root Of Your Churn Rate Woes With Big Data In Marketing Analytics

Businesses across every sector experience a churn rate. In the United States, significant sectors experience a churn rate between 10-25%. Suppose a company has a million subscribers with average revenue of a hundred dollars per year per customer. Even if the business has a meager 10% churn rate, it will lose ten million dollars every year!

Is there nothing businesses can do to get rid of their churn rate woes? Well, they definitely can. Companies can focus their attention on using big data in marketing strategies.

Importance of Big Data in Marketing

The use of big data in marketing helps businesses to get valuable insights about their potential, current, and ex-customers. With big data, businesses can better understand their customers’ needs, likes, dislikes, and wishes. This helps marketing teams create better, personalized and engaging marketing campaigns that can help lower churn rates.

Types of Big Data Useful in Marketing

Data comes in various forms. However, if businesses want to use big data in marketing, they need to focus on three main types of data – customer, financial and operational.

Let’s have a look at each in detail.

Customer Data

This includes the customers’ names, ages, contact details, email addresses, subscription history and other data, which helps build customer profiles and personas that can help with marketing strategies.

Financial Data

This includes the expenses on sales and marketing campaigns and other costs incurred to gain or retain customers. Businesses can also have their competitor’s data, such as product pricing included, if needed.

Operational Data

This includes data related to different processes along the customer’s journey. Data such as customer feedback, IoT sensors and logistics are included in operational data.

How Big Data Proves Helps In Marketing

When effectively used, big data helps marketing teams to get a better understanding of their customers. This enables them to optimize their marketing strategies, accelerate processes and improve customer loyalty and retention. Here’s how using big data in marketing helps lower churn rates.

Ensuring Constant Customer Communication

Big data can be used to stay in constant touch with the customers. Businesses can send regular emails, messages and discount coupon links that can help keep the customer engaged with the company. Moreover, it can make the customer feel special and believe that the business cares about them. This helps with customer retention and reduces customer churn.

Designing Better Marketing Campaigns

Using big data in marketing enables businesses to create personalized marketing campaigns that better connect and resonate with the intended customer. This increases the chances of the customer signing up to use your product and services.

Big data analytics helps businesses understand what the customer likes and dislikes. They can thus create marketing campaigns that only focus on products liked by the customer.

Enhancing Pricing Decisions

Earlier, businesses decided the selling price of their products based on minimal factors, such as cost of production, transportation costs and competitor prices. But, in today’s digital age, businesses have to focus on various parameters to determine the optimal price of their products. These include customer purchase decisions, average cart value, product preferences and economic situations, to name a few. Thus, dynamic pricing is the new pricing model adopted by businesses.


Big data can help businesses determine and automate the best pricing strategies for their products. It provides insights regarding the preferred price point, the type of discount frequently used and the customers’ preferred payment method. Thus, businesses can price their products at competitive prices and offer fantastic discounts. These can help with onboarding and retaining strategies and prevent the customer from switching to your competitor.

Improving Customer Service

One of the primary reasons why customers leave is poor customer service. According to research, poor customer service is the leading cause of customer churn. Another research validates this claim. It found out that 70% percent of customers leave due to poor customer service.

Using big data in marketing can help improve customer service and reduce customer churn rates. One of the major applications of big data to improve customer service is chatbots.

Businesses can use chatbots to automate conversations with customers. They can be used in marketing campaigns involving customer responses. Similarly, chatbots can address customer queries and provide solutions to their problems instantaneously. This reduces the wait time experienced when connecting with a human customer service employee.

Moreover, chatbots can also help businesses reduce operational costs and eliminate human errors.

Predicting Customer Behavior

Data analytics methods, like predictive analytics, can play a significant part in reducing customer churn rates. The big data gathered from various sources build a customer profile. Different data parameters, such as the historical purchase data of the customer, are fed into machine learning and AI business analytics tools, which then analyze the data to forecast future customer purchases with high accuracy.

This can help marketing teams create better marketing campaigns to upsell, resell or cross-sell their products and services, while reducing the chances of the customer ending their association with the business.

Major Tech Companies Using Big Data in Marketing

Using big data in marketing has proven helpful for major reputed companies. Let’s have a look.


Arguably, the king of OTT video streaming platforms uses big data to improve customer services and relationships. The most prominent use case is to provide customers with data-driven recommendations that keep them hooked to the platform.


The eCommerce giant has leveraged big data analytics to improve personalization and customer satisfaction. Now, you know why you are recommended products that you magically end up buying.


Airbnb uses big data to gather critical insights, such as the customer’s stay preferences, budget and destination to improve their marketing strategies.

Businesses that utilize big data in marketing and sales operations are guaranteed to see success. They are more likely to retain their existing customers and lower their churn rates. Moreover, using big data in marketing can also help attract new customers, leading to further business growth.

Big data can transform the outlook of the marketing team completely. The possibilities are truly endless when using big data in marketing.


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