Subscription-based businesses are increasingly focusing on retaining existing customers to ensure predictable revenue streams. The cost of acquiring new customers has risen significantly over the past decade, making customer retention a critical aspect of the business. Danish startup Subsets has developed an AI-enabled platform to address this challenge, helping companies reduce churn and retain subscribers.
Key Takeaway
Subsets’ AI platform offers subscription businesses a transparent and data-driven approach to reduce churn and retain customers, with a focus on the digital media vertical.
Explainable AI for Churn Prediction
Subsets leverages explainable AI to identify subscribers who are at risk of churning. The platform provides insights and conducts “retention experiments” to determine the most effective strategies for retaining customers. Explainable AI plays a crucial role in justifying the decisions and insights provided by the platform, making it more transparent and trustworthy.
Focus on Digital Media Vertical
While Subsets’ platform can be applied to various subscription businesses, the company is currently concentrating on the digital media vertical. By analyzing subscriber data points from internal systems such as CRM and CMS, Subsets offers commercial teams a web app to visualize churn audiences and conduct retention experiments.
AI Algorithms and Y Combinator Backing
Subsets has developed its own AI algorithms using gradient-boosting models with temporal sequencing methods. The company has also utilized frameworks from Elon Musk’s xAI to make churn-driving behavior understandable. With a recent $1.65 million pre-seed funding led by Nordic early-stage VC Upfin and Y Combinator, Subsets aims to further enhance its platform and expand its customer base.
