Is There a Better Option?
Is there a better option?
Not a comment you ever want a customer to utter to themselves, especially in competitive industries such as telecommunications, banking, retail or insurance.
In telecommunications, and for Communication Service Providers (CSPs) specifically, a fundamental tenet is that it costs much less to retain an existing customer than it is to acquire a new one. The challenge, therefore, is to identify customers who are at the highest risk of churn before they switch to another provider.
By understanding customer behavior, preferences and patterns, CSPs can improve processes at every customer touchpoint – on the web, by phone, or in a retail store – and predict those customers likely to churn.
By providing customer insights and the appropriate next best action to undertake with particular customers, those on the front lines of each channel can now execute retention campaigns to avoid customer loss.
By leveraging the power of IBM Smarter Analytics, XO Communications, a leading nationwide provider of advanced broadband communications services and solutions based in Herndon, Virginia, has improved customer retention by nearly 60 percent and created millions of dollars in annualized revenue protection with better quality customer interactions in contact centers and through more effective marketing campaigns.
XO has vast amounts of customer data, including demographics, transaction history, calling patterns, and conversations with call center agents. They compiled more than 500 data variables on its customers, and used the software to identify specific trends and correlations in those variables that were the most predictive to voluntary churn.
Traditionally, XO’s retention programs were focused on keeping customers in contract and when contracts should be renewed. Now, XO prioritizes their proactive outbound calls to “high risk” customers and better organizes their resources so each client services manager can monitor churn risk on up to 400 accounts and spend more time proactively engaging with the most valuable and profitable customers who carried the highest churn scores.
XO would otherwise likely need twice as many client services managers to achieve the same level of churn intervention through frequent contact and relationship building. And there's no guarantee they'd be reaching out to the most 'at risk' customers, meaning wasted effort while potentially high value clients disconnect.
With a better overall customer experience, XO is now able to stay competitive against other carriers and create more strategic decisions affecting their top and bottom lines.
Hear directly from XO Communications and learn how they achieved such incredible savings and retention by joining a webinar on Wednesday, April 11 from 11:00am – 12:00pm EDT. Register here.
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