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Churn prevention

Strengthening customer loyalty

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  • Project Experiences

Task

In times of aggressive low-price competition and increasingly price-sensitive end customers, it is crucial for energy suppliers to retain existing end customers and win back former ones. This is why we have supported our clients in this project - the B2C segments of several energy retail OpCos in Germany and abroad - in improving and expanding their churn strategies.

To best meet this challenge, our team consisted of experts in the fields of retail business, data analytics and data modeling.

Strategy

Our strategy encompassed several project phases: First, our experts carried out an analysis of the current churn situation in short diagnostic phases of one month. The analyses included figures, background information, existing measures and processes, governance and various data models. We then identified possible levers for improvement and determined their financial impact.

On this basis, we developed campaigns to prevent contract terminations and optimised their implementation in a subsequent two-month phase.

Implementation

The implementation of our strategy to reduce the churn rate comprised several components:

  • Direct "win-back" campaigns
  • Proactive campaigns (including the development of a predictive churn model)
  • Measures to increase the amount of telephone numbers and opt-ins from existing customers
  • Revision of the product portfolio and introduction of buy-back and loyalty products
  • Refinement of customer benefits

Optimization of the steering model and scripts of call centers

Results

In total, we have carried out or optimised more than 10 campaigns. 25% of the customers who would most likely have migrated could be retained by the proactive campaigns. We also added several new products to our portfolio and collected thousands of phone numbers and opt-ins. The opt-in rate at one distribution company could be increased by more than 600 %.

This helped our customers to retain or win back about 10 % of the "lost orders" - the equivalent of several thousand customers - and to generate a medium-term NPV EBIT potential of 8-10 million euros.

 

4

Your point of contact for
Digital Customer Experience

Max Deitmer
Partner Digital & Data Contact us now:
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Your point of contact for
Digital Customer Experience

Daniel Sochaczewski
Associate Partner Contact us now:
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