The document discusses identifying customer churn and measuring lifetime value. It provides a real-world example of an effective multi-channel retention campaign utilizing analytics and a cost-progressive channel strategy. Specifically, it describes how a wireless provider used business intelligence to target likely churn customers and employed a multi-channel strategy including text, direct mail, and calls to increase retention rates and ROI. The campaign resulted in a 5.6% reduction in churn and a 180% increase in ROI compared to a basic segmentation strategy.

3. Acquisition Current Customers Farmer Retention Farmer Acquisition $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $

4. What is Customer Churn? Simply stated: It’s the act of losing your customers due to competitive pressure, unhealthy relationships, financial constraints, etc. How do most of us deal with customer churn? REACTIVE! $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $

7. Advertising Target Marketing Technology Modeling/Profiling Incentives Customer Acquisition $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $

15. Are all Customers created equal? Customer A Customer B $ $

16. First…Who do you WANT to keep? Formula for CLV Present Value = Future Value/(1+i) n (1+i) = Interests N = No of Years $ $

25. Multi-Channel Campaign Control Campaign Results (Direct Mail Sent to Every Customer)

26. Multi-Channel Campaign Multi-Channel Customer Retention Strategy

28. Multi-Channel Campaign Propensity to churn Over-utilization Contract expiration Old equipment Low usage Filter out Payment issues 2.225 m customers to be targeted Certain geographies Do not contact 2.25M customers to be targeted

29. Multi-Channel Campaign Filter Do not text Non- responders Old equip/ No text capability 225k removed Personalized Text 2.0M Offer Based on BI Model Offer Based on plan type Phone exclusive offer Inbound Call Keep customer away from retail outlet 160K Calls @ 8% RR E-Verification E-Contract Offer Based on BI Model

30. Multi-Channel Campaign Filter Do Not Mail Non- Responsive to Mail ROI Filter: Usage/ Profitability 461K Removed Personalized Mail Piece 1.38M Personalized Offer Based On BI Model Offer Based On Plan Type Geography Demographic Psychographic Drivers Phone Exclusive Offer Inbound Call Keep customer away from retail outlet 55K Calls @ 4% RR E-Verification E-Contract ROI Filter: Usage/ Profitability Offer Based On BI Model Demographic Psychographic Drivers

31. Multi-Channel Campaign Filter Do Not Call Non- Responsive to Phone Respondents to Text or Direct Mail Billing Cycle More Stringent ROI Filters 649K Removed Outbound Call 675K Offer Based On BI Model Offer Based On Plan Type Phone Exclusive Offer 405K Contacts Made Inbound Call Keep customer away from retail outlet 74K Calls E-Verification E-Contract More Stringent ROI Filters Offer Based On BI Model

33. Multi-Channel Campaign Multi-Channel Campaign Results

34. Multi-Channel Campaign Multi-Channel Campaign Summary