Elangova madhivanancasepresentation
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The document analyzes the retention rate gap between different types of customers by identifying attributes that impact churn, gathering data to analyze the attributes, and recommending ways to increase retention rates such as understanding the needs of existing online customers and avoiding loyalty erosion during in-store visits.
Elangova madhivanancasepresentation
- 1. Customer Retention Rate Gap Analysis Efficient way of creating a metric to track reason for retention rate Created to show case my Case Presentation Skill gap between two types of enrolled customers. Prepared by Elangovan Madhivanann
- 2. Created to show case my Case Presentation Skill Unhappy Customers Churn Increase in customer retention rate by 2 % gives same effect on the bottom line as having saved 10% of the costs1 75 % of the 17 to 20 million subscribers signing up per year are coming from another wireless provider and hence are already churners2 1 http://mineful.com/customer-analysis/retention-rate.html 2 http://www.dbmarketing.com/telecom/churnreduction.html
- 3. Created to show case my Case Presentation Skill Approach Attributes Data Gather Analyze Recommend Identifying attributes which impact churn rate or influence retention rate. Gather data ( explain assumptions) Choose appropriate framework & analyze Results & Recommendation 3
- 4. Created to show case my Case Presentation Skill Attributes to be Measured Customer Demographics Age, Gender, Income, Ethnicity Product lines ( Business unit information) Phone, Internet, Cable etc. Pricing Startegy In-Network, Out-of-Network, SMS,Family package, call history & plan usage etc Customer Service log Exit survey results, Method of de-activiation 4
- 5. Created for Mu-Sigma Case Presentation Gather Data Assumptions 10000 churned customer demographic data for t month. Customer service log for t, t-1 and t-2 data collected. Call history & data plan for t,t-1 and t-2 data collected. Modes of deactivation available? Retention rate is inversly propotional to Churn rate and its good to measure on smaller proposition. ( Churn rate)
- 6. Created to show case my Case Presentation Skill Retention rate influencer model for churn analysis Demographic Is it Customer beneficial log to stay ? Product & Consequnces Price Account closure Active Deactive
- 7. Created to show case my Case Presentation Skill Income Customer Profiling Retention Age Ethnicity rate Hypothesis: Younger Age people has more churn rate in Education both In-Store and Level Online enrolled customer Observation: Place of enrolement ( in-store & Online) not necessarily 100% reason for retention rate
- 8. Created to show case my Case Presentation Skill Customer Behavior Hypothesis: Customer with more time & less income are sensitive to rentention rate. Varaible: Income, Age Cluster Numbers : 4
- 9. Created to show case my Case Presentation Skill Customer Value Hypothesis: Mutliple attempt of reaching customer help desk increses churn rate Node: Age , # of attempts to reach help desk Observation: Younger are quicker and require issues resolved quickly Result supports Hypothesis
- 10. Created to show case my Case Presentation Skill More of business sense In-store scenario: Agent would have laid plan in specific to Prospects 100% satisfied with value proposition before enrolement Customer prefer human interaction Online scenario: Got attracted towards Unique Selling Points Enrolled without clearity about their need state Easy deactivation features Observation: Intervene and understand needs of existing online customer - Increase few more months of retention.
- 11. Created to show case my Case Presentation Skill Recommendation Price sensitive customer likely to churn for slight variation in price Deeply involved customer hesitate to churn Loyalty errosion are avoided during in-store visit ;demotion & increased churn rate for online customer Summary: Along with In-store & Online enrolement , customer behavior and value segmentation influence retention rate , greatly.