A POINT SOLUTION FOR CUSTOMER CHURN

Intenda worked alongside a professional services consultancy to utilize Fraxses as a point solution for a customer churn project.

The consultancy had been contracted by an energy provider to investigate the factors driving the customer churn it was experiencing. Recognizing the Fraxses data platform as the ideal solution to identify statistical correlation for churn across recorded data events, the consultancy elected to complete the point solution in partnership with Intenda.

Fraxses enables analysts to create federated Data Products that provide insights effectively and efficiently. It eliminates multi-team cross business segment dependencies, treats all data equally, and intelligently discovers relationships between data from different sources within hours. With the Fraxses solution in place, statistical analysis and visualization of results can occur, providing more timely analysis and insight.

PROBLEM STATEMENTS

Three problem statements and courses of action to address them were defined at the outset.

Firstly, the energy provider’s data was retail-focused and segmented according to account level metrics, rather than being directly linked to the customer journey. It would therefore be necessary to design customer-centric insights, analysis, and actions.
Secondly, the systems containing customer data and their feedback were not integrated. Thus, a single platform for data integration, along with a single customer view, were required.
A third issue was the fact that business reporting was driven by static segmentation driving reactive actions, rather than by analytics designed to drive insight aligned to lifecycle.

In addition to resolving these three problems by implementing the defined courses of action, some changes were required in the organization itself. While the energy provider aspired to leverage its data, it lacked data maturity. To extract maximum value from its data, a new focus and new skills were required. Along with this, a cultural understanding needed to be established within the company.

10-DAY Point Solution Timeline

KEY INSIGHTS

Several key insights were delivered that lifted the veil on factors driving customer churn. These included the following:

A correlation between churn, customers’ ages, and their invoice amounts was confirmed, with the highest churn propensity occurring amongst customers of a certain age who had received high invoice amounts.
Customers who had contacted the energy provider to complain were twice as likely to churn as those who had not.
Most of the customers who churned were on one of two specific plans.
Churn patterns varied significantly from state to state. In one state, an astonishing 45% of customers who signed up with the energy provider based on the door-to-door sales channel churned.
Based on the insights obtained, Fraxses was leveraged to generate a ‘confusion matrix’ predicting future churn patterns.

FEDERATED FEATURES LIBRARY

The insights and churn drivers that were identified were all based on features in the Federated Features Library (FFL).

The FFL, comprising 31 Data Products, provides statistical validation across a federated view of the customer journey. The FFL’s Data Products leverage the platform’s ability to work with structured and unstructured data, discover relationships between disparate sources, and take data lineage and pedigree into account.

In this instance, the FFL was created specifically for the point solution, rather than for planning, strategic decision-making, or customer treatment purposes. For the energy provider to leverage Fraxses for these purposes, a comprehensive, governed implementation would be required. Nonetheless, confirmation of the following was provided:

Fraxses delivers insights. Fast.

The professional services consultancy’s head of data scientists estimated that without Fraxses, this 10-day exercise would have taken the Analytics team four months to complete. The fact that a point solution can deliver these results is testament to the enormous potential of the Fraxses data platform.

If you're interested in running a Fraxses point solution in your organization, contact Intenda today.

A POINT SOLUTION FOR CUSTOMER CHURN

PROBLEM STATEMENTS

10-DAY Point Solution Timeline

KEY INSIGHTS

FEDERATED FEATURES LIBRARY

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