How Large Telecom Identified ~$6M in At-Risk Annual Revenue from Digital Product Issues
To identify at-risk customers, understand the reasons behind their risk, and estimate the revenue impact of churn, this telco partnered with InMoment for an in-depth analysis of their customer base and their perceptions of the telco’s service. InMoment conducted a Strategic Insights Review with the client, curated a new targeted survey, ingested social reviews, and connected financial data to identify a segment of customers that have the largest revenue retention opportunity. Together, the team pinpointed the root cause of at-risk customers to one specific streaming product in the telecom’s portfolio, which negatively impacted satisfaction with the brand as a whole and contributed to broader service cancellations.
Highlights:
- InMoment performed a Strategic Insights Review to identify ~$6M of revenue at-risk
- By combining survey and social review data, the root cause of churn was found to be freezing, blackouts, and lack of resolution issues with streaming product
- Pathway to future price increases defined for future revenue uplift, following churn prevention initiatives
The Challenge: Reducing Churn and Planning for Price Uplift
This large telco needed to reach revenue targets set by the company, and put a stop to customer churn. The customer experience was already dropping, being negatively impacted by recent price increases to certain product lines, so to mitigate the impact, the CX team needed to identify revenue growth and recovery opportunities with current customers based on their experience to date.
Pinpointing these opportunities was proving difficult, so the Telco needed a partner to conduct new strategic research into the existing customer base, bringing in additional data to get ahead of any unfavorable impact the price increase would have on the bottom line across segments.
The Solution: Targeted Data, Additional Channels and Expert Services
InMoment conducted an initial discovery with the client to understand their strategy, goals and objectives. Based on this insight, we curated a new targeted survey focused on understanding the various customer segments and personas, and their likelihood to switch providers. We combined the responses to the survey with ingested social reviews to understand any experience breakers that would derail the strategy. By combining feedback data with financial data (customer spend) we identified a segment of customers that had a high likelihood to switch, which presented a ~$6 million in revenue retention opportunity.
Using text analysis, the root cause was pinpointed to be ongoing issues with a streaming product, which negatively impacted satisfaction with the brand as a whole and contributed to broader service cancellations within the bundled subscription too.
The client was presented with a comprehensive business case to recover at-risk revenue with a few simple steps, and considerations for raising the price of their products when customer satisfiers have been met.
Better Products, Happier Customers, and Fairer Prices
InMoment’s in-depth analysis revealed that:
- This Telco had a clear strategic roadmap and a $6M business case justification for product improvementÂ
- A more complete view on customer and product satisfaction from both survey and social review data from app stores
- Pricing roll-out messaging considerations to maximize not only retention, but overall spend with acceptable price increases that balance customer value and business profitability
By addressing issues with the digital streaming product, the Telco could protect $6 million in spend from at-risk customers by reducing streaming issues, freezing, blackouts, and lack of resolution.
To further enrich the data and inform future analysis, InMoment also recommended adding Active Listening™ powered open-ended questions to better understand what it means to be “proud to be a customer” and incorporating product bundle data to focus price increase analysis on customers most impacted.
Schedule a strategy session with our expert team today to see how InMoment can help you identify ROI opportunities from your CX program.
