Click me
Transcribed

Driving effective customer retention for communications

EFFECTIVE CUSTOMER RETENTION FOR COMMUNICATIONS In a world where penetration rates for services like mobile have reached more than 100% in many countries, Communications Service Providers (CSPS) are shifting their sales and marketing investment from attracting new customers toward maximizing customer value through improved revenue and retention. As CSPS shift focus from customer acquisition to retention and margin, we have identified a few key best practices related to retention. START RETENTION AT "HELLO" Traditionally, CSPS first implemented their retention strategies on customers who were dissatisfied and about to churn. More advanced Implementing Retention Strategies into Every Customer Touch Point CSPS now realize that it is more effective to make sure customers never get on the exit path in the first place. RETENTION STRATEGIES Preemptive Proactive Reactive WinBack Not thinking about leaving Thinking about leaving CHURN RISK Leaving Left RETURN ON INVESTMENT More effective Most expensive Low effectiveness PREEMPTIVE strategies O PROACTIVE strategies Applied before there are any recognizable churn signals from the customer. Applied when initial churn signals first appear like complaints in service, reduced usage or repeated technical support events. Requires the ability to predict customer lifetime value. Requires predicting the likelihood of churn. Executed without considering likelihood of churn and in the name of providing an excellent customer experience. Once data is analyzed and patterns are discovered, it can be applied against current subscribers to find those that are likely to churn. With preemptive and proactive strategies, CSPS are integrating these strategies and their offers into every customer touch point, regardless of channel. A centralized source - a "decision hub"- provides every channel with the right offer at the right moment in the customer lifecycle. DECISION HUB CHANNEL D CHANNEL C CHANNEL A CHANNEL A CHANNEL CHANNEL CHANNEL B CHANNEL C CHANNEL C CHANNEL D CHANNEL D CHANNEL A ull. With all retention strategies, a critical factor in driving effectiveness is taking a customer-centric approach to determining propensity to buy' when presenting products and services. This propensity modeling significantly improves acceptance rates. CREATE THE 1:1 BUSINESS CASE FOR RETENTION From Segmentation to Value of Customer MASS CUSTOMER LIFETIME SEGMENTATION VALUE Suscribers are broadly grouped Using real-time decisioning combined with a guided interaction to present the most appropiate basket of offers for each suscriber. and labeled. Works well for acquisition but sacrifices profitability in retention. THIS INDIVIDUAL APPROACH OPTIMIZES PROFITABILITY BY MAKING EACH OFFER A PERFECT FIT AGAINST RETENTION VALUE YES! OFFER A FOCUS ON DECISIONS, NOT DATA NO, THANK YOU DISCOUNT Imperfect data can give great results 24 Leading CSPS are finding out that they can get good retention results even on incomplete and imperfect data. By starting with limited data values that are just good enough to make sensible recommendations or automate retention decisions, With this approach, CSPS are turning conventional retention strategies around, taking an incremental approach and using the business results of the early phases of their retention solution implementation to fund additional data quality initiatives. they get business results. HERE ARE A FEW BEST PRACTICES Constructing a minimal set of data that supports the highest value decisions and then use predictive analytics and decision strategies to confirm the key data elements that will deliver actionable results. Making sure the decision strategies automatically prompt for missing data elements that are used as input to the rules or predictive models embedded in that strategy. Setting up the solution to statistically analyze data and make it either useful or automatically reject the offending data element. If after data analysis not enough data remains to create and support an accurate predictive model, simply deploy a model with known lower predictive performance. Even models with low predictive capability are likely superior than assumptions or guesswork. 15% 21% 8% 25% THE REAL-WORLD EXPERIENCE GAINED, AND THE POWER OF THE ANALYTIC CAPABILITIES IMPLEMENTED CAN SIGNIFICANTLY ACCELERATE THE DELIVERY OF DATA QUALITY RESULTS WANT TO KNOW MORE? CSPS NEED TO DISCOVER MORE EFFECTIVE WAYS TO RETAIN THEIR BETTER CUSTOMERS LONGER IN ORDER TO ENSURE PROFITABILITY Pega The above ideas represent what is likely only the beginning of the road toward much more sophisticated retention best practices. www.PEGA.COM ABOUT PEGASYSTEMS Pegasystems revolutionizes how leading organizations optimize customer experience and automate operations. Six of the 10 largest global CSPS use Pega technology to deliver an exceptional customer experience, improve retention rates and maximize customer lifetime value. Our patented Build for Change® technology empowers business people to create and evolve their critical business systems. Pegasystems is the recognized leader in business process management and is also ranked as a leader in customer relationship management software by leading industry analysts. For more information, please visit us at www.pega.com. %24 DRIVING

Driving effective customer retention for communications

shared by ElkanoData on Apr 30
637 views
1 shares
1 comment
In a world where penetration rates for services like mobile have reached more than 100% in many countries,Communications Service Providers (CSPs) are shifting their sales and marketing investment from...

Publisher

Pegasystems

Designer


Source

Unknown. Add a source

Category

Business
Did you work on this visual? Claim credit!

Get a Quote

Embed Code

For hosted site:

Click the code to copy

For wordpress.com:

Click the code to copy
Customize size