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quickly and very economically. We
could test the water and determine
what the ROI was likely to be for
predictive analytics, making it a
lot easier to build a business case
for future analytics projects. Yet
we didn’t really have to sacrifice
anything in terms of functionality -
in fact the churn models we’ve built
have performed exceptionally well.'
11Ants Analytics Director of
Business Development, Tom Fuyala
comments: 'We are dedicated to
getting organizations up and running
with predictive analytics faster,
without compromising the quality of
the results. With
other solutions you must trial and
error through multiple algorithms
manually, but with 11Ants Analytics
solutions the entire optimization
and management of the algorithms is
automated, allowing thousands to be
trialled in a few minutes. The
benefits of this approach are
evidenced in the real-world
results.'
Peter is also impressed by the ease
of use 'The simplicity was a big
deal to us. Not having to have the
statistical knowledge in-house was
definitely a selling point.
Company culture was also a big
factor in our decision making -
11Ants Analytics felt like a good
fit. They've been very
responsive and have been great to
work with. The turn-around on some
of the custom requests we have made
has been fantastic.'
Peter also likes the fact that
models can be built with the desktop
modelling tools and then deployed
against the enterprise customer
database with 11Ants Predictor.
Once the model has been built it is
easy to deploy it in 11Ants
Predictor to run against Oracle and
score our entire customer base very
quickly. The speed with which
11Ants Predictor can re-score
hundreds of thousands of customers
is fantastic. We presently rescore
our customer base monthly, but it is
so easy that we could be re-scoring
daily if we wanted.'
Benefits
2degrees put 11Ants Analytics
solutions to work quickly with very
satisfying results. The initial
project was to focus on an
all-toocommon problem in the mobile
telecommunications industry –
customer churn (customers leaving).
For this they deployed 11Ants
Customer Churn Analyzer.
2degrees were interested in
identifying customers most at risk
of churning by analyzing data - such
as time on network, days since last
top-up, activation channel, whether
the customer ported their number or
not, customer plan, and outbound
calling behaviours over the
preceding 90 days.
A carefully controlled experiment
was run over a period of three
months, and the results tabulated
and analyzed. The results were
excellent - the customers identified
as churners by 11Ants Customer Churn
Analyzer were a game-changing 1275%
more likely to be churners than
customers chosen at random. This can
also be expressed as an increase in
lift of 12.75 at 5% (the 5% of the
total population identified as most
likely to churn by the model). At
10% lift was 7.28.
Other benefits included the various
insights that 11Ants Customer Churn
Analyzer provided. For instance
validating things that staff had
intuitively felt, such as time on
network’s strong relationship with
churn, and highlighting areas where
product enhancement would be
beneficial.
Armed with the information of which
customers were most at risk of
defecting, 2degrees could now focus
retention efforts on those
identified as most at risk, thereby
getting substantially higher return
on investment on retention marketing
expenditure. The bottom line is
significantly better results for
less dollars spent.
2degrees Head of Customers, Matt
Hobbs provides a perspective on why
this is not just important to
2degrees but also to their
customers:
‘Churn prediction is a valuable tool
for customer marketing and we are
excited about the capabilities
11Ants Analytics provide to identify
customers who display indications of
churning behaviour. This is
beneficial to both
2degrees and to our customers.
To customers go the benefits of
identification, if you are not
likely to churn you are not
constantly annoyed by messages
asking you to stay; and
appropriateness, customers receive
offers that actually are appropriate
to their usage, minutes for someone
who likes to talk, texts for someone
who likes to text, etc.
To 2degrees go the benefits of
targeting; by identifying a smaller
group of at risk customers,
retention offers can be that much
richer because of the reduction in
the number of people who may receive
it but not need it; and
appropriateness again.
By aligning these benefits for both
2degrees and the customer, the
outcomes we are experiencing are
vastly improved.'
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