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Comms providers deploy analytics to call time on churn

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19th Feb 2010
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Three communication service providers have introduced predictive analytics software in a bid to both enhance their marketing campaigns and boost customer retention levels in a highly competitive sector known for its high churn rates.

Predictive analytics (PA) software takes large volumes of both historical and real-time information from different internal and third party sources, puts it through a statistical model and predicts likely outcomes based on a range of causal factors.

As a result, the UK’s Tesco Mobile decided to deploy IBM’s SPSS PA applications in an attempt to understand its customers’ motivations, opinions and preferences more effectively, with the aim of increasing loyalty.

The move enabled it to provide clients at risk of going elsewhere with incentives and offers in a bid to get them to stay as well as design new marketing campaigns to target high value customers more effectively.

Digital +, which is part of Spanish concern Sogecable, also used the system to improve the performance of its call centre staff. Because the software can generate predictions based on individual client’s past behaviour, it was able to suggest potential sales opportunities to agents when on the phone. The suggestions, which included product upgrades or new services, were assigned ratings and appeared on a ‘pop-up’ screen.

Omar Rois, Digital +’s customer analysis manager, said that being able to offer clients customised offerings has reduced churn by 20% and increased cross-sell campaigns by 5-10% over outbound campaigns.

Finally, Netherlands-based firm UPC Broadband, which provides both digital and analogue TV, broadband internet and digital telephony services, went down a similar route in an attempt to cut customer churn rates and boost sales.

It used the software to analyse client behaviour and purchasing patterns as well as socio-demographic data in order to undertake more targeted marketing campaigns.

Jim Jenkins, UPC’s director of database marketing, said that the move had led to response rates that were four times higher than previous campaigns and there had also been a "substantial" reduction in customer turnover.

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