Reduce Customer Balking
A leading American multinational coffeehouse chain with over 800 locations and 29 million annual customers partnered with Decision Studio to tackle customer balking—visitors entering stores but leaving without purchasing. Using predictive modelling and real-time tracking, the initiative delivered an £80M revenue increase and a 50% reduction in balking.
In collaboration with Decision Studio, the coffeehouse chain took a data-driven approach to tackle this issue. First, technology was deployed across a flagship UK store to track customer entry, movement, queue times, and wait durations. The team conducted exploratory analysis to identify patterns influencing balking across different store zones and customer segments.
Using predictive modelling, they applied linear regression to assess the impact of variables such as queue length and staff availability, while logistic regression allowed for real-time predictions of when a customer was likely to balk. Based on these insights, prescriptive solutions were developed, including opening additional service counters during peak times, adjusting staff deployment dynamically, and sending digital incentives to customers at risk of leaving without purchasing.
50% reduction in the balking rate
£80M
increase in annual revenue
50%
reduction in the balking rate
40%
decrease in wait times at service counters
20%
reduction in collection point wait times
This project not only improved the in-store experience for customers but also empowered the coffeehouse chain with a scalable, predictive solution. The success of this initiative has positioned customer experience as a strategic growth lever, one that can be replicated across other locations to drive further business growth.
