Case Study: A Leading Telecommunications Company
Client benefits from commitment to improving customer loyalty.
Situation
The threat of customer churn is a perpetual concern within the competitive telecommunications industry. The client wanted to improve the experience of their high-value small-business customers in order to:
- reduce the customer churn level of high-valued business customers
- increase customer’s average months of service
- increase revenue by up-selling additonal products
- control program related costs
The client’s existing loyalty program was not providing the desired results or ROI. They turned to Maritz Loyalty Marketing based on their reputation as experts in data analytics and reward fulfillment.
Solution
With the goal of providing the client with a holistic view of their customers, Maritz recommended a comprehensive, but cost-effective, full-service loyalty program that included:
- data segmentation and scoring to determine best customers
- predictive modeling
- at-risk/churn analysis
- potential value analysis
- targeted customer up-sell strategies
- program strategy, management, reporting and analysis
- meaningful reward recommendations and fulfillment services based upon customer data
- web development and creative communications
- online reward redemption
Results
The client has been able to differentiate itself within the highly competitive market and deliver a superior customer experience, by:
- understanding their customers
- communicating with customers in ways that they choose
- rewarding customers in ways that are important to them
In addition they:
- Realized strong ROI from extending customer life by 15 months over non-members
- Improved attrition with a 39% lower churn rate for members versus non-members
- Achieved a 25% close rate on up-sell campaigns through the program
- Continually reduced liability and Cost Per Point through merchandising and reward sourcing strategies
- Lowered point liability by $15MM by designing and executing an opt-in campaign for current members
- Reduced Cost Per Point by 12% through quarterly point burner promotions and other strategic campaigns
- Drove website usage to reduce program costs, resulting in over 75% of redemptions placed online
- Collected 64,000 email addresses in order to reduce communication costs
