Customer Case Study
Cablecom Cablecom switches on to customer retention How SPSS is helping to reduce churn through a programme of enterprise feedback management and the use of predictive analytics technology At a glance Country:?SwitzerlandSituation Industry: Telecommunications and Cablecom GmbH is Switzerland's largest cable network operator. Broadcasting to broadcast 1.6 million homes across the country, Cablecom offers customers cable television, Date founded:?1931broadband internet, mobile and fixed-network telephony. Company type: Part of UPC Employees: 1,400Cablecom has a reputation in its market as an innovator, being the first operator to provide customers with quadruple play services. This reputation is mirrored Applicationin-house with the company using the very latest technology in order to offer the Customer churn reductionbest service to its customers. Solutions usedChallenge mrInterviewTIn an age where churn is an issue across most industry sectors, being able to target Clementine®customers efficiently with tailored marketing initiatives is hugely important to the success of any organisation. And, in the broadcast and telco space, where churn is a major worldwide issue, this approach is vital.
"Seeing the world through the customers' eyes is at the heart of our business," said Federico Cesconi, head of customer insight and retention at Cablecom. "Customer information and feedback is key to this process and is enabling us to take a proactive approach to one of our industry's most pressing problems."
"It's much easier to retain a customer than to try to win him or her back. Many win back activities and offers are often too late for the customer looking to switch providers. In many cases, the decision has been made weeks before and it is costly and difficult to reverse," explained Cesconi.
SolutionCablecom recognised the key to tackling churn was to identify the point at which customers become dissatisfied with the service and before they made the decision to switch to an alternative provider.
As a result, the company turned to SPSS for help to support an enterprise feedback management programme and to make use of predictive analytics technology to better understand its customers, in terms of their characteristics, behaviour and attitudes.Customer churn reduction
It selected SPSS' best-of-breed survey application and Based on their responses, customers were scored according market-leading data mining technology to assess and to their likelihood to churn. Those most at risk of switching analyse customer feedback across various phases of the were then targeted by a dedicated customer retention customer lifecycle. It now uses this insight to predict team. This team proactively contacts those customers who future behaviour and adapt its activities to meet customer completed the survey to discuss their issues and suggest demands and cut churn. solutions in order to persuade them to stay. Feedback from customers involved in this process has been positive with At significant points across the customer lifecycle, Cablecom many appreciating the call.solicits detailed customer feedback to better understand the customer and assess his/her likelihood to churn. The information garnered from this survey is then analysed with SPSS' data mining solution. This has revealed more In the pre-sales stage, feedback is collected through sales than 100 indicators that would suggest if a customer is likely channels to understand whether a subscription exists with a to churn, including the initial activation period, the number competitor and when it will terminate. And, once the sale is of customer service queries, price band and the original made, Cablecom proactively contacts customers regarding sales channel.their initial satisfaction with the company and its offerings. This covers the purchase and installation, as well as the On the back of this analysis, SPSS' solution is then used to initial usage of the service. assess the satisfaction level of people not taking part in the survey, providing useful insight across the entire customer Following initial results, Cablecom discovered that base. Customers identified as being likely to churn can be unsatisfactory events in the early to midterm portions of the passed to the retention team whilst others can be contacted customer's lifecycle have the deepest effect on churn, in by the sales teams with cross- and up-s... [download for more]
