Dynamically knowing clients and customers is the turning point for success in the current digital media and entertainment industry. In fact, customer data and intelligence allow to manage customers with customized and relevant messages during each interaction in their journey lifecycle. To do this, it is important to identify the proper target for each campaign developing new propensity and churn models and carefully monitoring the effectiveness of each activity on customers.

2. Being relevant for
your own customers
TheSocialBusinessForum | Milano, July 7-8th 2015
Stefano Fiorentino
Dir. Churn Management & Customer Engagement

3. Annual investments
The elements of a successful Pay TV
Must-have
50%
50%
‘Sky Difference’
A new way to watch TV
(any time, anywhere)
Customer service
(caring, loyalty, …)
Contents

4. The goal is to satisfy the expectations of single customers in their
spare time
Collecting necessary information to:
Shape a commercial offer maximizing customer
satisfaction
Convince your company stakeholders to execute a certain
activity on specific customer clusters

5. Knowing your customers is the turning point for success …
Web
1to1
surveys
Audience
panels
Web
contests
Sky Go
usage
Forum
Sky On Demand
usage
Information is King!

6. … and allows Sky to manage customers with customized and
relevant messages during each interaction
Customer centric
optimization
CRM
Operational
system
Data
warehouse
Marketing
Datamart
Propensity
Models
Campaign
Management
System
Real Time
Marketing
BILLING
SYSTEM
WEB
…
Customer Customer
Inbound
Outboun
d
Company data
repository
4.000+ KPIs
per customer
Probability to buy a
product or to churn
Targeting
250+ campaigns/month
4M contacts/month
Decision Tree - Cumulative Lift Value
0,0
0,5
1,0
1,5
2,0
2,5
3,0
3,5
4,0
0 5 10 15 20 25 30 35 40 45 50 55 60 65 70 75 80 85 90 95 100
% Population order by descending probability
LiftValue
Multivision
Decision Tree - Cumulative Lift Value
0,0
0,5
1,0
1,5
2,0
2,5
3,0
3,5
4,0
0 5 10 15 20 25 30 35 40 45 50 55 60 65 70 75 80 85 90 95 100
% Population order by descending probability
LiftValue
MySKY
Decision Tree - Cumulative Lift Value
0,0
0,5
1,0
1,5
2,0
2,5
3,0
3,5
4,0
0 5 10 15 20 25 30 35 40 45 50 55 60 65 70 75 80 85 90 95 100
% Population order by descending probability
LiftValue
Sport
Decision Tree - Cumulative Lift Value
0,0
0,5
1,0
1,5
2,0
2,5
3,0
3,5
4,0
0 5 10 15 20 25 30 35 40 45 50 55 60 65 70 75 80 85 90 95 100
% Population order by descending probability
LiftValue
Cinema
Decision Tree - Cumulative Lift Value
0,0
0,5
1,0
1,5
2,0
2,5
3,0
3,5
4,0
0 5 10 15 20 25 30 35 40 45 50 55 60 65 70 75 80 85 90 95 100
% Population order by descending probability
LiftValue
Churn Risk
Creating a loop which receive feedback from customers and make them available for processing

7. SKY
DATAMART
4.000+ KPI’s per customer
Demographic data (partially available)
Behavioral data (fully available)
Psychographic or attitudinal data
(partially available)
Geographical area
Tenure
MOP
Acquisition Offer
Technology
PPV Usage
PDISC History
(Repeaters)
Pack Downgrade
Pack Owned
Household info
Favorite sports
and team
Favorite movie
category
Number of Sky
GO events
watched
….
ResultsModels developmentCustomer Data Available
New tool to manage the CB
The model estimates, on the entire
customer base, the probability of an
active customer to request for
disconnection
Top 11% of the customer base have a
probability to churn 3.5 times higher
than the average
To identify the proper target for each campaign we
have developed propensity models
MEDIUM
RISK
72%
17%
11%
HIGH
RISK
CB = 100%
0,5x
1,5x
3,5x
CHURN
PROPENSITY
LOW
RISK
Model goal: Churn Prediction

8. We carefully monitor the effectiveness of each activity on customers
‘’Sky Difference’’ effect on Churn%Active
customers
100%
Time since activation
Target: customers involved in the activity being monitored (in the above example: MySkyHD technology activation)
Control group: subset of customers excluded from the activity being monitored, but with the same characteristics of
Target customers, from both a socio-demographic and Sky subscription standpoint
CHURN
SAVING

9. Thanks to this approach, we are closer to each customer’s specific
needs
Voice of the customer
‘’mi chiamano per
vendermi il
Multivision ma
sono single’’
‘’odio il calcio ma mi
chiamano tutti i mesi con
un’offerta per aggiungere
il pacchetto’’
‘’vorrei Sky on Demand ma
nessuno mi ha mai
spiegato come si installa’’
‘’finché vivevo in un
monolocale il Multivision
non mi interessava , poi
ho cambiato casa e Sky
mi ha offerto il trasloco
gratuito dell’impianto
con Multivision incluso’’
Past … … Today
‘’Sky è venuta
incontro alle mie
difficoltà economiche e,
grazie all’ Homepack,
mi ha fatto risparmiare
sulla bolletta telefonica”
"sono tifoso del Milan, potete
quindi immaginare la sorpresa
quando mi hanno chiamato per
comunicarmi che con il concorso
fedeltà avevo vinto un biglietto
per andare a San Siro’’

10. Thank you
TheSocialBusinessForum | Milano, July 7-8th 2015
Stefano Fiorentino
Dir. Churn Management & Customer Engagement