7 Revive Sell
Revive Sell is a product recommendation model that recommends products to the customers focussing on lapsed/lost customers to improve their relations with the vendor as repeat/better customers.
In Cross Sell section, we learned about recommending products via collaborative filtering. Further, we learned about Churn. However, there are weaknesses and hurdles we have to overcome.
In the Cross Sell model, we segment the customer by RFM quartiles, and recommend products to those who have similar profiles. However, if the customers made certain purchases that led them to become lapsing/lost customers, Cross Sell will still recommend them simply because they have similar profiles, which means their RFM status is unlikely improve because they will be stuck with products that led other customers to become lapsed/lost.
In the Churn model, we detect customer retention algorithmically, with more urgency and in more detail compared to RFM. This adds a nice extra layer of detail for segmentation and targetting, but does not lead to data science based decision guidance for the customer.
Revive sell combines both, while fixing the weakness of cross sell.