Project examples

Implementing down-selling for customer retention in an economically optimal way

The objective: A company lost a high proportion of high-margin customers and would like to retain them effectively in the future.Projektfragen

The idea: By specifically offering a cheaper alternative product, further cancellations are to be avoided.

Our brief: "Sharpen" the target group to reduce wastage and deadweight loss.

Model and forecast: The willingness to switch was modeled using a statistical method and predicted for existing customers for the next 12 months.Verfahren
The risk of switching was calculated individually for each customer. The total number of customers at risk of switching finally led to the forecast of the sales volume at risk as well as the share of sales at risk.

In various scenarios, the costs of customer retention (margin foregone due to down-selling and over-dispersion of the measure) were compared with the potential returns (avoided terminations).

Result: In the actual project, the costs exceeded the achievable returns in all scenarios. We therefore advised our client to abandon the measure!

Benefit for our customer: An economic loss in the 6-digit range could already be avoided in the first year of the analysis. - Furthermore, the analysis gave hints for the improvement of the product portfolio and supported the use of alternative customer loyalty instruments.

Conclusion: Determining and forecasting campaign efficiency can help you save a lot of money!

to the presentation (german) ...
our campaign efficiency portfolio ...

Support of operative sales via call centers - 360° customer approach

The goal: Telephone customer care should be integrated more strongly into operative sales. Calling customers are to be provided with targeted, precisely tailored offers.

The idea: Service employees are to receive a concrete indication of the individually determined, next sales target with the customer.

Our assignment: Determination and regular updating of customer-specific consulting suggestions (next best offer) and implementation in the CRM processes.

Model: Together with our customer, we developed a fine-grained logic for determining customer-specific consulting suggestions. Individual product preferences, existing contracts and purchase quantities, product prices, willingness to pay, and sales goals were condensed into a recommendation. The intelligence of the recommendation logic is ensured by dynamic feedback loops at different levels of the process.

Optimization of the measure by:Gliederungshierarchie

Result: More than every 8th customer accepts the individualized consulting proposal!

Benefit for our customer:BV_Response

Conclusion: The individualization of product and service offers significantly increases sales success.

to the presentation (german) ...
our customer management portfolio ...