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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. 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. 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. 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. 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. 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. Applying the model parameters
80%
90%
100%
Efficiency
0%
10%
20%
30%
40%
50%
60%
70%
80%
Population
DetectedEfficiency
Gain

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. 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