Overview
A competitive energy supplier operating in a deregulated market was experiencing high customer churn rates and struggling with costly customer acquisition processes. The company, which serves both residential and small business customers in a highly competitive marketplace, needed a more sophisticated approach to customer retention that could identify at-risk customers and provide targeted interventions to improve win-back success rates and overall customer lifetime value.
Challenges
- High customer attrition and the difficulty of profitable customer acquisition were major challenges
- These issues necessitated a more targeted and data-driven approach to retain existing customers and attract new ones effectively
How We Made It Happen
Propensity Model Development
- Developed a sophisticated propensity model using historical data
- Predicted which customers were most likely to renew their commitment
- Considered factors such as customer tenure, tariff type, meter type, previous complaints, and billing history
- Provided a comprehensive understanding of customer behaviour
Tailored Conversational Strategies
- Equipped associates with tailored conversational strategies for outbound calls
- Focused on addressing key issues and leveraging strengths in the customer relationship
- Personalised interactions to engage more effectively with customers
- Addressed specific customer needs and concerns
Addressing Red Issues
- Identified and addressed the main reasons for customer attrition, known as 'red issues'
- Provided targeted solutions to retain customer interest and resolve ongoing issues
- Mitigated the risk of losing customers
- Strengthened customer loyalty through proactive engagement