A McKinsey survey reveals that companies employing extensive customer data analytics to inform their business decisions achieve a over competitors that do not utilize analytics or do so sporadically. While average performers among survey respondents incorrectly attribute bottom-line success to their marketing, pricing and campaign management efforts, industry champions recognize their customer analytics and customer-driven initiatives as their main winning factor.
With profitability directly linked to customer retention, the reduction of customer churn through robust data analytics remains an underutilized area with high ROI.
Businesses with high volumes of customer data such as the ones in the Telecom and Broadcasting Service industry can achieve significant results whether they unlock the value of their own client-behavior data, or complement it with data obtained through research.
A success story
The client retention project we delivered to the world’s largest international TV and broadband company, Liberty Global, demonstrates the power of data-driven analytics to ensure long-term profitability. Building upon the latest trends in machine learning, the project reduced Liberty Global’s churn rate by 34%.
To that end, GemSeek developed a functional technique to model different survey research outcomes, and apply these to internal customer datasets including CRM, transactional data, and others. This application of data fusion and Artificial Intelligence (AI) revealed customers at risk of leaving with 80% accuracy, while the propensity-to-save model we built as a following step identified churners most likely to be rescued. Allowing for more targeted rescue initiatives, our model enabled call center agents to target unsatisfied clients individually, and as a result improved ROI and increased success rates of retention campaigns by 18%.
When striving to rescue leaving customers, businesses need reliable information to maximize success. Picking customers at random or calling them indiscriminately are not viable solutions when addressing customer churn. Good intentions aside, they are inaccurate, costly and reputation-damaging. Seven times more precise than other approaches to identifying highly dissatisfied customers, GemSeek’s propensity model allows resources to be spent where it matters most – to keep customers happy.
In others’ words
The innovative approach and impressive results achieved in partnership with Liberty Global received world-class recognition when GemSeek won the 2018 Market Research Society award for Innovation in Data Analytics among fellow finalists Omnicom Media Group and Twitter & IPG Mediabrands.
When commenting on the awarded project the judges said, “There is real evidence of resultant client action directly based on this state-of-the-art study, plus very positive customer service/commercial impact too. A clear winner.”