DTH Subscribers Churn Model
CASE STUDY
DTH Subscribers Churn Model
Managing Subscribers Churn through Proactive Retention ...
Summary
• To identify & control Subscribers Churn• To identify & control Subscribers Churn
Business
Objective
• Proactive ...
Business Objective
The DTH industry is the most competitive industry in the world with high
acquisition costs and changing...
Cequity’s Analytical Approach
Understanding the
transactional
Developing a
Mathematical
Cequity deployed advanced modeling...
Cequity’s Analytical Approach
Understanding the
behavior from multiple
sources of data
Customer
Service
Vintage
DTH
Subscr...
Cequity’s Analytical Approach
Deactivation Probability
= fnfnfnfn (Subscriber
/Product
Characteristics)
Artificial Neural ...
Applying the model parameters
80%
90%
100%
Efficiency
0%
10%
20%
30%
40%
50%
60%
70%
80%
Population
DetectedEfficiency
Gain
Results
Cequity’s Predictive Model has enabled the DTH service provider to
identify the high value high churn propensity s...
Worldwide Offices
INDIA USAINDIA USA
Mumbai Office: 105-106, 1st Floor, Chicago Office: 626, Grove
Street, Anand Estate, 1...
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DTH Case Study

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DTH Case Study

  1. 1. DTH Subscribers Churn Model CASE STUDY DTH Subscribers Churn Model Managing Subscribers Churn through Proactive Retention Program Client: Large Direct-To-Home Service Provider
  2. 2. Summary • To identify & control Subscribers Churn• To identify & control Subscribers Churn Business Objective • Proactive Retention Campaigns enabled by Cequity’s Proprietary Predictive Modeling Methodology • Proactive Retention Campaigns enabled by Cequity’s Proprietary Predictive Modeling MethodologySolution Proprietary Predictive Modeling MethodologyProprietary Predictive Modeling Methodology •Developed a multi-dimensional model on a variety of variables & dimensions driving churn based on subscribers’ behavior. Applied the output & results for prediction of churn •Developed a multi-dimensional model on a variety of variables & dimensions driving churn based on subscribers’ behavior. Applied the output & results for prediction of churn Predictive Modeling Approach • Client gained opportunity to execute retention programs on high value customers with high propensity to churn • Client was able to control churn and enhance revenue per every retained subscriber • Client gained opportunity to execute retention programs on high value customers with high propensity to churn • Client was able to control churn and enhance revenue per every retained subscriber Results
  3. 3. Business Objective The DTH industry is the most competitive industry in the world with high acquisition costs and changing tariff plans. Industry also has to face severe competition from local cable operators who offer attractive discounts to retain & switch customers. The challenge in front of this service provider was both the cost of acquisition of customers as well as potential churn of subscribers.subscribers. A proactive retention campaign to retain high value customers from churning is the key to increase & protect revenue for any subscriber-based business. The business objective was to identify the subscribers who have a high propensity to churn and thereby focus the marketing campaigns on a select segments of subscribers and therefore optimize the marketing spend.
  4. 4. Cequity’s Analytical Approach Understanding the transactional Developing a Mathematical Cequity deployed advanced modeling technique to construct a Predictive Model for the DTH service provider to identify these subscribers based on historic and observed transactional behavior. transactional behavior based on past usage Mathematical Relationship on factors driving churn. Deactivation Probability = fnfnfnfn (Subscriber /Product Characteristics) Applying the Mathematical Equation for Prediction of churn Cequity’s Predictive Model Development Stages
  5. 5. Cequity’s Analytical Approach Understanding the behavior from multiple sources of data Customer Service Vintage DTH Subscriber Demographics Spend Customer Interactions Service Active/Non- Active customers Usage Product Characteristics Cequity’s advanced data management tools ensured timely and accurate data file generation from an extremely complex transaction dataset.
  6. 6. Cequity’s Analytical Approach Deactivation Probability = fnfnfnfn (Subscriber /Product Characteristics) Artificial Neural Network Platform using Support Vector and Machine Learning Algorithms Favorable Churn probability Favorable no Churn probability Probability of churn Variable Interactions
  7. 7. Applying the model parameters 80% 90% 100% Efficiency 0% 10% 20% 30% 40% 50% 60% 70% 80% Population DetectedEfficiency Gain
  8. 8. Results Cequity’s Predictive Model has enabled the DTH service provider to identify the high value high churn propensity subscribers. Now, the client combines the predictive churn model with other CRM metrics like cross-sell of offers, customer value to develop the retention and win- back strategy. Six targeted campaigns post scoring were launched concurrently to mutually exclusive segments for proactive retention of subscribers.subscribers. Cequity’s partnership with the DTH service provider was not limited to only Analytics but extended to partnering with the client to support in subscriber database management, rule-based analytical reporting, Dashboards and MIS for Management teams to take quick business decisions and also for planning; executing and monitoring of the retention campaigns. Leading to potential savings of over US$ 4 million.
  9. 9. Worldwide Offices INDIA USAINDIA USA Mumbai Office: 105-106, 1st Floor, Chicago Office: 626, Grove Street, Anand Estate, 189-A, Evantson, IL 60201 Sane Guruji Marg, Mahalaxmi, Mumbai-400 011 Phone: +91 22 23000133, 23054039, Fax: +91 22 23053809 www.CequitySolutions.com info@CequitySolutions.com

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