Case Study: Telecommunications

Case Study

BI helped this telecommunications company reduce the churn of its wireless customers.

Results

  • During the first year of the program, churn among members (test group) was more than 30% lower than that of a comparable sampling of non-members (control group).

In a fiercely competitive market, how can a company keep the valuable customers it already serves? For one telecommunications company, the answer was: Keep them talking—and reward them for talking to you.

Issues

The company wanted to:

  • Increase revenue and profits by capturing the loyalty and reducing the churn of high-value wireless customers.

Solution

  • BI designed a loyalty program that rewards the company’s highest value wireless customers, as defined by their monthly billings. The more customers spend, the more points they earn. The points are redeemable for additional wireless calling time, accessories and other products and services offered by the telecommunications firm.
  • Customers earn their initial points for completing a new member profile, which helps BI segment the database according to customers’ specific use of services. Longer-term customers are awarded points at higher levels based on their longevity.
  • BI produces a quarterly newsletter and point statement for each of the more than 200,000 members. In addition to rewards for their wireless use, participants receive members-only offers and information.
  • BI maintains the administrative database for this program. Attention-getting program communications, including a welcome kit and the program newsletter and quarterly statements, are created by BI. Customers contact BI questions about the program.