Energy supplier increases customer win-back success rates by 60%

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