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Retention
Making Your Customer Retention Efforts Work Harder
The Client
Global Document Management Services Company — Digital Office Products Unit
The Challenge
To increase the retention of lease and service contract customers in its high-end copier business.
The Breakthrough
SIGMA:
- Developed and applied a “likely-to-attrite” model that identified accounts most likely to cancel their equipment lease or service contracts as well as the event-based triggers behind that attrition.
- Created an automated notification process to regularly score the customer base for attrition and deliver “Warning Reports” to the sales force regarding accounts likely to cancel.
- Included in these “Warning Reports” all relevant treatment strategies and messaging to help guide the sales and customer service agents in their efforts to retain and/or increase customer renewals and trades.
- Provided sales and marketing management with a system of accountability for lead generation, tracking and conversion results using an automated, web-based reporting system in a real-time environment.
The Win
- SIGMA’s attrition model identified the top 15% of the population that would yield over half of the pending cancellations.
- Attrition was decreased by over 40% for leases and over 15% for service contracts.
- Resulting savings realized:
- Over $5 million dollars in service contracts
- Over $55 million dollars in lease contracts
- The program is now being rolled out across multiple product lines, and our client’s senior management has issued a personal endorsement for the expansion of SIGMA’s data mining and analytical services into other business units.