Customer Stories / Software and Internet
Toustone Builds Predictive Intelligence Tool to Forecast Membership Churn Rates with 82% Accuracy
Discover how the Australian advanced analytics and decision intelligence company helped a community sports club boost membership growth and retention with AWS.
Companies often must strike a fine balance between customer acquisition and retention. While new customers help companies grow, each acquisition can cost five to seven times more than retaining an existing one. As such, many companies are turning to customer data to generate better business insights and improve customer retention rates.
Toustone is an Australia-based advanced analytics and decision intelligence company that leverages data to help its customers make better, more informed business decisions. Founded in 2014, Toustone has customers across various sectors, including transport, enterprise and government, and operates primarily in the Asia Pacific region.
Built on Amazon Web Services (AWS), Toustone used Amazon SageMaker, a machine learning service, to develop a new predictive intelligence tool in 2022. Using this tool, Bankstown Sports Club (BSC), one of the largest sports club groups in New South Wales (NSW), was able to reduce member churn rate and achieve the highest membership growth rate in 2023.
Opportunity | Driving Membership Retention Through Predictive Analytics
BSC was established in 1958 as a meeting place for various sports in the local community. Over the years, it has expanded to over 160,000 members, and now includes an extensive range of F&B and entertainment establishments, including recreational gambling facilities.
In 2022, the NSW government introduced new initiatives to promote responsible gambling. With recreational gambling accounting for up to 72 percent of the club’s income, BSC recognized that it may be financially impacted. To reduce its reliance on recreational gambling for income, BSC needed to diversify its income sources, minimize membership churn, increase long-term membership renewals, and better engage new prospective members.
While BSC planned to achieve the above-mentioned goals by tapping its wealth of membership data, it had previously stored its membership data across disparate and siloed systems. As a result, BSC had to designate a staff member to manually identify and analyze data from different sources, which often took weeks to complete. This complex, highly labor-intensive process was prone to human bias and errors, which undermined the quality of data and business insights.
In 2022, Toustone proposed RetainMember, an advanced and predictive intelligence solution that would forecast membership churn rates, identify at risk members, highlight marketing opportunities to grow their membership base, and improve the overall member experience.
With Amazon SageMaker, we created a highly accurate machine-learning model that predicts churn rate and identifies who is at risk of leaving their membership, and unlocks new links with data for value creation. By building our predictive intelligence tool on AWS, our customers can make evidence-based decisions with unprecedented confidence and ease of mind.”
CEO & Co-Founder, Toustone
Solution | Harnessing Data to Develop Predictive Intelligence Tool
Toustone used Amazon SageMaker to build, train, and deploy a machine-learning model that formed the basis of RetainMember, its predictive intelligence tool. By analyzing BSC’s visitation, point of sale (POS), gaming, paging, promotion and membership data, RetainMember can accurately identify members at risk of discontinuing their memberships, which in turn allows BSC to implement targeted marketing initiatives, member retention programs and plan their future capital expenditure. Since using RetainMember, BSC has achieved their highest membership growth rate of 25 percent during the period of April to October, 2023.
“With Amazon SageMaker, we created a highly accurate machine-learning model that predicts member churn rate and unlocks new marketing and business opportunities with data to help clubs grow. By building our predictive intelligence tool on AWS, our customers can make evidence-based decisions with unprecedented confidence and ease of mind,” said Craig Lefoe, chief executive officer and co-founder of Toustone.
Toustone used Amazon Simple Storage Service (Amazon S3), an object storage service, and Amazon Redshift, a cloud data warehousing service, to build and deploy a robust data pipeline. RetainMember can now tap on a unified database to generate deeper business insights and make accurate churn predictions. For instance, RetainMember helped BSC achieve its highest-ever membership growth in 2023 by identifying with an 82 percent accuracy rate which members were likely to discontinue their engagement with the club within the next 12 months. With Amazon S3 and Amazon Redshift being fully managed services, there was no need for additional manpower from Toustone to manage the database, resulting in a more cost-effective solution to its customers.
“With Toustone’s RetainMember, we now have a unified dashboard that includes key metrics, such as member lifetime value and churn rates. This allows us to efficiently allocate marketing resources, target at-risk members, and focus on their long-term retention. Today, we have achieved our highest membership growth rate. This in turn drives staff across the business to engage in acquisition and retention campaigns,” said Chris Villani, Group Strategy & Commercial Manager of BSC.
Outcome | Inspiring New Product Innovations
Toustone plans to build on the success with BSC by extending the technology behind RetainMember to other use cases. For instance, Toustone recently developed RetainTalent, a version of the predictive intelligence tool that uses machine learning to predict when an employee might leave an organization within the next 12 months. This helps Toustone’s customers reduce the turnover rate and improve talent retention.
With Environmental, Social, and Governance (ESG) reporting becoming a significant focus for corporations, Toustone’s sustainability reporting and carbon footprint predictive intelligence tool is yet another solution to help Australian businesses meet their business goals. The predictive component of Toustone’s sustainability solution integrates machine learning algorithms and analyzes energy and other consumption data points to help businesses understand their usage and greenhouse gas emissions up to 24 months ahead. This allows businesses to understand and test different scenarios to help reduce their carbon footprint. Toustone’s sustainability solution aims to help customers measure, report on and improve their material sustainability progress.
Toustone is an Australia-based advanced analytics and decision intelligence company that leverages data and machine learning to help its customers make better, more informed business decisions. Founded in 2014, Toustone has medium to large enterprise and government customers across various sectors, including transport, enterprise, clubs and agriculture, and operates primarily in the Asia-Pacific region.
AWS Services Used
Amazon SageMaker is a fully managed service that brings together a broad set of tools to enable high-performance, low-cost machine learning (ML) for any use case.
Tens of thousands of customers today rely on Amazon Redshift to analyze exabytes of data and run complex analytical queries, making it a widely used cloud data warehouse.
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Amazon Simple Storage Service (Amazon S3) is an object storage service offering industry-leading scalability, data availability, security, and performance. S3 is built to store and retrieve any amount of data from anywhere.
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