Telco & Utilities
Telco & Utilities
Mathematical models to reduce customer churn rate
In synergy with one of the main operators of the free market of electricity and natural gas, we worked to understand the causes of churn, i.e. the rate of abandonment by customers, and allow customer service to implement targeted actions of prevention and refinement of the offer.
- Description and benefits
In an increasingly competitive market, knowing the causes of customer churn is vital. For this reason, we have analyzed all the data available to trace the hidden factors not yet detected by the customer. Once the customers at greatest risk and the potential causes of abandonment were identified, the operator was able to implement targeted retention actions.
More effective retention actions
Customer care has more targeted information available to direct its activities
Objective and data-driven analyses
The insights extracted from the data have made it possible to identify the reasons behind customer churn and to objectively quantify the impact of each issue
Increased quality of the service offered
Possibility to design the offer on the specific demands of the consumers
Deepening case study
The theory of the games to support the decisions
To provide a list of possible causes of churn to the customer care service of the company, we have adopted the typical indicators of game theory. Through that, in addition to measuring the probability of abandonment, we also provide the company with the possible underlying reasons. Compared to black box models, the resulted machine learning model is interpretable and therefore much more relevant to the decisions that the company must take.
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