A major cable company was experiencing churn due to high competition from satellite providers. The company needed to overcome their "utility company" perception with their current customers.
Solution
Targetbase addressed the retention problem by creating an individualized VIP program.
Business Intelligence identified that the key time period when churn was highest was also the same time period for greatest opportunity to cross-sell. In fact, those customers who signed on for more services during this critical time period were significantly more likely to be not only higher-value customers, but also longer-tenured customers.
A predictive target profile was developed of the key customers who were highest-value prospects. These prospects were "invited" to the VIP program which included:
- Immediate recognition of new customers with a personalized thank you.
- Special invitation to VIP program, where "special offers" and "new service introductions" were provided based on individual profile provided by customer.
- Special customer service and web site were provided for VIP members for questions and problem resolution.
Results
- Customer satisfaction levels higher among VIP members.
- VIP customers showed an increase in number of services purchased.
- Over 80% of geographical markets signed up for program, increasing after first-year results.
