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Analytics reveals root causes of customer churn and enables a telecommunications leader to reduce attrition and boost loyalty.
Advanced analytics solutions are reducing customer acquisition costs and boosting market share for a top-ranking US telecommunications leader that serves tens of millions of subscribers.
Accenture Analytics analyzed root causes of customer attrition and applied targeted strategies to help reduce overall customer churn. The scope of the project included all service channels and related processes to strengthen customer loyalty.
Wireless communication is an increasingly commoditized service in the United States. To achieve profitable growth, it is critical for providers to reduce attrition or “churn.” This wireless and data provider had addressed the “low-hanging” causes of churn, but wanted to dig deeper to identify and understand root causes of customer attrition. They looked to Accenture Analytics to help take them to the next level of improvement by using advanced analytics.
Accenture Analytics went beyond the ordinary approach by front-end-loading analytics with hypotheses about why customers tend to leave. Along with gathering historical data, our skilled team members captured the knowledge of company leaders, as well as from Accenture specialists in telecommunications and churn.
We industrialized the process for capturing and prioritizing hypotheses, which provided a continuous pipeline of ideas on ways to diminish churn in each customer segment.
By employing a well-integrated and transformational approach, Accenture is providing analytics-powered insights for multiple teams to enable:
The marketing group to design optimal treatments for churn “hot spots.”
An integrated Churn Command Center (spanning analytics, customer segmentation and execution) to prioritize and measure progress toward performance targets.
The delivery-channels team to execute across the Web, phone, direct marketing and at retail touch points.
The change team to motivate all people involved to focus on customer retention and improved loyalty.
Within nine months, Accenture Analytics analyzed more than 150 hypotheses and helped launch more than 25 churn-reduction campaigns. The project helped the US wireless and data provider to speed program ramp-up time, accelerate access to insights and reduce cycle time from ideas to market execution.
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