In times of aggressive low-cost competitors and increasingly price-sensitive customers, it is crucial to retain existing, or to win back former customers. We, therefore, supported our clients, the B2C segments of several Retail OpCos in Germany and abroad, in improving and extending their churn strategies.
In short Diagnostics Phases of one month, our experts created an understanding of the current churn situation (quantitative figures, reasons for churn, existing churn campaigns and processes, governance, data models, etc.) and identified potential improvement levers and their financial impact.
During two-month long implementation phases, we developed or enhanced churn prevention campaigns and their enablers, such as:
- Direct win-back campaigns
- Proactive campaigns (including the development of a churn prediction model)
- Measures to increase the number of phone numbers and Opt-Ins of existing customers
- Revision of the product portfolio and introduction of reacquisition- and loyalty products
- Refinement of customer value
- Optimization of the steering model and the scripts of call centers
As a result, we implemented or improved more than 10 campaigns (e.g. 25% of customers who are likely to churn were retained by proactive campaign), added several new products to the portfolio, and gathered thousands of phone numbers and Opt-Ins (e.g. in one OpCo, increase of Opt-In rate of more than 600%). This helped our clients to retain or re-acquire ~10% of “lost contracts”, i.e. thousands of customers, generating an NPV EBIT mid-term potential of 8-10 mEUR.
In order to support our clients in the best way possible, our team consisted of experts in the Retail business, as well as data analytics and data modeling experts.