Expected Cumulative Project ROI of 600 % after five years.
Estimated overall profitably of the business 6 to 10 % higher.
Sales and Marketing Project Team satisfied with the Software.
Problem
The company is a market leader in mobility services and management solutions. More than 90,000 customers use their solutions across Europe. They are not alone in this market. Competition is increasing from service specialists, mobility solutions integrators and small independent national players.
The company was experiencing a growing customer attrition, voluntary and involuntary, as well as hard (complete termination of the business relationship) and softer (slow but significant reduction in consumption) churn. Their business model and processes are typical for the subscription industry, where customers can switch providers quickly. Preliminary estimates show that the company would suffer a seven-digit loss from customer churn. Preventing this is therefore a great opportunity.
For this reason, the company set itself the goal of defining and reducing customer churn. It initiated the following measures: The modelling of customer attrition and the implementation of a dedicated Customer Churn Prediction Software. Furthermore, the Controlling and Sales teams had to be able to continuously identify customers most likely to terminate their contract or reduce their usage in short to midterm. Lastly, their European Sales & Marketing teams should bring their experience to play. Their task was to define and derive specific measures to avoid migration within the segments identified by the model.
Before working with Qymatix, the company has invested resources mainly on customer acquisition and on-boarding, leaving churn prevention and analytics to each business unit. Moreover, although the sales team could count on the help of their advanced Business Intelligence department, they did not have machine learning algorithms in place.
Solution
The company trusted Qymatix Solutions GmbH expertise in implementing its Customer Churn Prediction Software to increase retentionchurn software to predict and reduce soft and hard customer attrition. As required by the customer, we divided the attrition project into three phases: modelling, technical implementation, and sales process setting.
First, in less than two weeks and with a minimal investment in data science, data quality and sales analytics, the customer was able to assess the expected benefits of implementing Qymatix Predictive Analytics Software across its European organization. This step included the extension of the existing CRM system with the Qymatix machine learning models. We integrated information about customers, marketing actions, customer service and pricing. By using specific customer data, we improved and extended the Qymatix churn prevention software. In addition, across several workshops, senior management learned how to apply machine learning and predictive analytics to B2B churn analytics and churn prevention. These workshops were essential for a successful implementation of the project in the company.
We implemented the second and third phase of the project in parallel. The goal was to increase adoption by the salespeople and to reduce the workload on the company internal resources. During the second phase, we applied our expertise in machine learning, ERP data mining and churn prediction to define and predict customer churn, including “soft-churn” (reduction in consumption). We expanded the Qymatix Customer Churn Prediction Software to correct the predictions based on seasonality. We also advised the customer regarding data quality and data integration. The Qymatix Churn Prevention Software automatically reads ERP sales data and sends its results to the customer CRM.
Defining and predicting customer churn is only half the job. Now the company needed to make the sales team more successful at retaining customers. Therefore, during the third phase of the project, Qymatix experts in the field of B2B sales controlling worked together with the customer sales and marketing upper management to develop strategies for retention.
Challenging for this attrition project was the parallel implementation of a new CRM. Thanks to Qymatix expertise in B2B sales and CRM analytics, the company gained an extra value, namely knowing the kind of information their sales teams need to retain customers.
Results
Qymatix Customer Churn Prediction Software helps the company to accurately predict cancellations and reductions in usage with six months in advance. The company projects that with Qymatix Churn Prevention Software, it will be able to double customer retention rates. In addition, customer satisfaction is expected to increase through a more proactive and focused customer care.
With a payback period of fewer than four months, Qymatix helped the customer to define and reduce customer churn. Also, the company avoided non-necessary investments in data visualization and dashboarding tools that would have not supported the sales team to become more efficient.
During the project, Qymatix also helped the customer to set and improve field-level retention strategies using its Churn Prediction Software. Besides, Qymatix experts assisted the executive management in estimating the possible monetary benefit due to increased customer lifetime value.
“Qymatix Predictive Sales Software makes customer attrition risks and untapped sales opportunities over hundreds of customers and thousands of products easily accessible.”
Hermann Waselberger – AET Entwässerungstechnik GmbH
“Qymatix helps growing medium enterprises to find undetected business opportunities with existing customers. With a thousand active ones in our portfolio, Qymatix Predictive Sales Analytics is exactly what we need.”
Daniel Schuster – Welotec GmbH
“Qymatix is how innovation works today: developed together with the end-users and with the most powerful technology.”
Peter Dern – software AG
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Free eBook for download: Churn analytics and prevention with predictive analytics
Managing and reducing customer attrition is an essential task of a sales manager. Sadly, sales executives often overlook customer churn in practice.
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