TELECOMMUNICATIONS SECTOR

Model case study: “Churn Prevention 2.0”

THE PREMISE

An important Tlc company conducts traditional customer retention activities (predictive retention), based on the customer satisfaction index (CSi) and addressed only to certain valuable groups of customers, to whom it reserves promotional offers.

Mikaline highlights the poor results of the CSI. Therefore, it proposes a new approach aimed at containing the abandonment rate and at strengthening and developing the customer portfolio, through a targeted loyalty action, both on certain classes of (valuable) customers, and on the risk segments, identified through a renewed predictive model.

ANALYSIS

The introduction of new customer experience indicators, developed with different depths on individual clusters (groups) of customers, has made it possible to bring to light specific critical issues on individual management processes / areas.

The general values, differently declined on the individual touch points, are:

14% of customers were acquired through the “word of mouth” tool.

19% of customers are detractors.

24% are under risk of abandonment.

RESULTS

The dropout rate was halved.

A targeted upselling made it possible to reach a break-even point of operational activity in about three months, compared to seven for the traditional retention approach.

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