Improving Customer Retention

A roadmap to retain high-value customers

Project Overview

A large telecommunications company experienced higher than usual attrition of new customers while also challenged with increased costs to serve the existing customer base, impacting profitability.

Client Challenge

Leadership in both operations and the contact centers faced significant obstacles in pinpointing the underlying issues with retaining customers. The lack of data to understand customer behavior and customer value coupled with the inability to drive the appropriate agent behavior was taking a financial toll on the company.

Lack of trust in data – Nearly all agents were self-reporting metrics, including the data used to pay their commissions. Metrics were defined differently among various contact centers and the tools used to capture data were mostly manual.

Insufficient visibility to agent performance – There was no single visualization tool in place to consistently define, capture and compare call center KPIs across the company. Agents and leadership typically created their scorecards each month manually.

Inconsistent definition of customer value – There was no standard calculation to determine the customer’s value to the organization, nor was there any data available to try to understand a customer’s buying habits.

Existing compensation plans drove poor fiscal results – With compensation plans that paid agents based on keeping a customer, with no regard for discount percentages or the customer’s value, the company was increasing costs while hurting margins and keeping low-value customers.

Approach

RevGen worked closely with the client to align their priorities, create consistent business metric definitions, and develop a detailed roadmap on how to utilize their sales and customer data more effectively. This included how tools and technology and new comp plans could be used to drive agent behavior which ultimately leads to positive fiscal results.

  1. Met with the client’s senior leadership team and subject matter experts to discover the pain points and business needs.
  2. Shared industry-wide best practices on how to approach customer retention improvement. Also shared RevGen’s proprietary maturity model for customer retention as well as results that could be expected when applying key pieces of each.
  3. Provided a detailed, step-by-step roadmap to improve Customer Retention and reverse recent fiscal results.

Solution

RevGen developed a detailed, targeted, multi-step plan for the client to implement.

  • Stakeholder Alignment. The executive team contact center leadership, IT, and operations agreed on their end vision, the priorities on how to reach the end goal, and the steps necessary to reach success.
  • Defined Metrics and Provided Solutions to Move Forward. Accurate and informative agent dashboards were proposed to make it easier to understand current performance and areas for opportunity. Also proposed options for the underlying architecture solution necessary to feed the dashboards.
  • Change Agent Behavior through new Commission Structure. Create transparent plans with the new, accurate data that focus on maintaining customer revenue levels and high-value customers.
  • Determine Customer Value. Define and create models to determine customer value, then use this customer value to drive both offer management and retention strategies.

Success Stories

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