3 Continents. 1 Solution. Millions saved!

It’s 6pm in the evening. You just received the bad news – your company’s Chief Financial Officer wants you to cut customer care costs by 5 percent for next year’s budget. “But we are expecting call center volume to increase by 10 percent next year!”  The voice of reason screams in your head while you look at the cost sheet to go through yet another round of cuts. 

This is the plight of customer service leaders at most Telecommunications companies, but it doesn’t have to be. What if you could reduce the number of incoming calls while lowering churn and increasing revenue?

Too good to be true? XO Communications, Eir and NTT Plala would disagree. 

XO Communications serves small and mid-size businesses (SMB) throughout the United States with broadband, digital landline and IT services. XO implemented an early warning system for churn that will predict which SMB clients are likely to be unhappy with their service based on over 750 data points. The Proactive Care solution analyzed customer service data such as installation time, number of customer care calls, trouble tickets over time and call center representative notes. XO’s account team proactively reached out to at-risk accounts, before they called in to cancel the service..XO saved over 10 million dollars each year with reduced inbound calls and achieved 26% reduction in customer churn. The solution paid for itself in just 5 months!

Over in Ireland, Eir (formerly Eircom) is leading the way in proactive customer care. Competition for wireless and broadband services was heating up in Ireland, and Eir experienced customer turnover that was costing the company millions of euros every year. Eir analyzed Net Promoter Score (NPS) survey results, including subscriber comments along with network data, to build a comprehensive picture of network experience for all subscribers and their likely satisfaction with the company’s services. Eir identified root causes that led to a poor customer experience and addressed those proactively. The results were impressive; Eir increased their Net Promoter Score, the leading indicator of revenue growth, by 40 points and reduced subscriber churn by 6 percent.

Finally, we stop in Tokyo, Japan. NTT Plala Inc. offers consumers and businesses internet service and IP TV service with specialty channels, movies and animated films. NTT Plala analyzed their viewers’ demographics, viewing habits and billing patterns to personalize recommended channels and programs to increase viewership and identify subscribers at risk of churning. Account representatives reached out to at-risk subscribers reducing customer churn by 21 percent and increasing audience ratings by 150 percent. 

Proactive care can drive as much as one hundred million dollars in savings for a service provider with 25 million subscribers. Interested in learning more about it? Read and share this whitepaper on Proactive Care from Analysys Mason