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Business Analytics for Sales and Marketing Managers: How to Compete in the Information Age by Gert H.N. Laursen

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UNHAPPY CHURN PROJECT

Unhappy churn was defined as those customers who had churned because they had been dissatisfied with the service or treatment they had received. As mentioned, here we wanted to identify and fix the processes that pushed the customers away. We had obtained knowledge about customers’ dissatisfaction through monthly interviews with some clients who were in their notice period.

One of the big churn drivers (something that pushes customers away) was that customers told us they had to call in to customer service several times to get a problem solved. Independent of this, the churn prediction model also demonstrated a link between the people who used the call center and those who later terminated their subscriptions (node 5 in Exhibit 9.3).

Customer service independently also contacted the churn team to get access to some analytical skills. The department’s challenge was also to minimize the number of customers calling in several times in order to free up internal resources, which effectively would be the same as minimizing the number of customers who were annoyed with the quality of the customer service center. In this situation we defined a “recall” as having occurred if the same customer called in for the second time with the same problem within a week, since we would assume that the problem was not solved first time around. Solving problems the first time would mean large financial savings for the customer service center; for the CRM team, the benefit would come ...

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