INCREASED CUSTOMER RETENTION AND MARGIN
Renowned Energy SupplierCHALLENGE
Due to the open market, competition is fierce resulting in low customer retention rates.
Improve customer retention rate while improving margin.
Decision Intelligence For Sales & Marketing
Supporting the agent with personalized offers which are optimized for both margin and conversion. These are offered with context, at the right moment in the process. This way the right decisions can be made to protect revenue and margin. As business impact is key, we applied hyper focus on trust, convenience and speed, resulting in a simple UI, with a very high user adoption.
Underlying AI's as part of the decision model:
•Churn Risk Prediction
•Prediction of Customer Lifetime Value
•Prediction of the cost-to-serve
•Personalized offer selection: Top 3 offers with highest chance to be converted while protecting margin;
Multi digit growth of the customer retention rate and margin.
1. Involve the business to get the right problem statement and domain expertise
2. To impact the outcome like the bottom line, you need to involve the different stakeholders and the capability to optimize multiple objectives at the same time (retention and total margin)
3. Find the right balance between human and artificial intelligence.
- ERP: Order data > products & services, recensy, frequency, monetary value, payment behaviour,
- CRM: Customer data like type, location, NPS
- Service: Complaints and number of hours worked per customer
Due to accurate predictions about who will leave and their customer lifetime value, we could pick the ones that need a specific treatment. Even more, we predicted which offer would be relevant to keep them onboard while keeping the margin at the same or higher level, boosting the total margin.