The client introduced a customer value management programme, but was looking to capitalise on these efforts and build advanced analytical capabilities (“smart analytics”), which would provide real time or near-real time management and be fully integrated and digital.
Facing fast changes in end-customer expectations and behavioural patterns, the client wanted to include social network analytics in their churn prediction and next best offer model.
Solution implementation can give 35%
PwC developed a churn prediction model (churn probability, probability over time, most likely churn trigger), lifetime value of customer and probability of retention in order to prioritise action plans and channels.
Additionally, PwC developed a next best offer model for the customer and the micro-segment, helping optimise campaigns to increase adoption and profitability.
Relations between customers and their behavioural/social network data were analysed in order to identify social groups and influencers for various effects (e.g. churn, cross-selling).
The client was equipped with an operating model and system architecture designed for the target analytical environment, including a dedicated Big Data Lake, tailored for analytics. Additionally, three advanced analytical models – Churn Prediction, Next Best Offer and Social Network Analytics – were embedded in daily business processes, and a roadmap was provided for analytical capability development.
The solution provided a tool that allowed the retention team to plan its strategy proactively and efficiently. It also helped increase ROI by feeding customised offers directly to internal Campaign Management Systems. Our platform also delivered reports on network influencers, as well as identifying communities and social pressure factors.
The rise of digital channels, and subsequent advances in data mining, provide your business with much more information about your customers’ transactions, activities and interests. This data can help you create a more comprehensive picture of customer profitability across every product and every channel if you employ it holistically.
by as much as 20%