Project Case Study

Enhancing Customer Retention Through AI-Powered Prediction

Client Overview & Problem Statement

Our client, a mid-sized financial institution, faced a significant decline in active credit card users, impacting revenue and long-term customer relationships.

Key Challenges:

  • Revenue Loss: Fewer active credit card users led to declining fee-based income.
  • Customer Retention Costs: Retaining existing customers is more cost-effective than acquiring new ones.
  • Competitive Pressure: Increased customer churn eroded market position and brand loyalty.
  • Customer Lifetime Value (CLV): A shrinking customer base limited cross-sell and upsell opportunities.

To address these challenges, the client sought a predictive solution to identify at-risk customers early and implement targeted retention strategies.

Our Solution Approach:

Mithril Advisory developed a structured, data-driven approach to address customer churn, utilizing multiple AI-powered classification models:

  1. Customer Churn Analysis
    • Performed exploratory data analysis (EDA)to uncover key churn indicators and predictors.
  2. Data Preprocessing & Feature Engineering
    • Handled data anomalies using statistical imputation techniquesand feature engineering to enhance model interpretability.
  3. Machine Learning Model Development
    • Evaluated multiple classification models, including Gradient Boosting, XGBoost, and AdaBoostand optimized model performance through hyperparameter tuning.
  4. Framework Development
    • Developed a customer segmentation frameworkbased on key indicators.

Results & Impact:

We used our AI-Driven Predictive Model to support our client and:

  1. Proposed numerous proactive engagement and retention strategies.
  2. Designed afeedback system to enhance customer interactions.
  3. Designed an analytical frameworkto provide leadership with actionable insights and track customer retention campaign performance via integrated dashboards.

 

Through Mithril Advisory’s AI-driven predictive model, the client gained:

✅ Early identification of at-risk customers, enabling targeted intervention.

✅ Proactive engagement strategies that increased customer retention and loyalty.

✅ Optimized customer segmentation for improved decision-making.

✅ A scalable AI framework to drive future retention initiatives.

By leveraging data-driven insights, the client was able to implement measurable retention strategies, strengthen customer relationships, and protect long-term revenue.

The Mithril Advantage:

Mithril Advisory’s approach goes beyond data science—we combine business strategy with AI expertise to deliver practical, high-impact solutions.

Why Partner with Us?

  • Deep Industry Expertise– Our team has extensive experience in corporate strategy, financial modeling, and AI-driven analytics, ensuring solutions align with business objectives.
  • End-to-End AI Solutions– From data collection to model deployment, we provide cost-effective, scalable AI solutions tailored to your organization’s needs.
  • AI Talent & Change Management– We help companies develop internal AI capabilities through hiring, training, and upskilling strategies, ensuring long-term success.
  • Ethical & Responsible AI– Our solutions are designed to be fair, transparent, and aligned with business ethics, with enterprise-wide change management support.
  • Customized for Global Businesses– Whether in developed or emerging markets, our AI models are built to adapt to local business dynamics, ensuring relevance and scalability.

 

At Mithril Advisory, we don’t just deliver models—we transform insights into action to drive measurable business success.

Contact Mithril Advisory today to unlock AI-powered customer retention strategies

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