Revolutionizing Customer Retention: How Foxtel Drove Up Retention Rates and Reduced Costs
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1 Revolutionizing Customer Retention: How Foxtel Drove Up Retention Rates and Reduced Costs Marco Miranda Executive Director, Sales and Customer Experience, Foxtel Richard Schultz Head of Operational Performance and Insights, Sales and Customer Experience, Foxtel Andrew Sethumadavan Managing Director, Communications, Media & Technology, Accenture
2 About Foxtel Company Profile Foxtel provides subscription television services across Australia, via satellite, cable, and streaming. Foxtel s core business focus remains on its television offering, and in 2015 the company branched out into broadband services, offering customers the opportunity to bundle both services together. 2.8 million subscribers Equating to market penetration of ~30% Product Offering Competition For many years Foxtel was the primary provider of subscription television in Australia. More recently, competitors providing low cost video streaming on Cable / Satellite Streamed demand have content offered customers Broadband alternative viewing options. Customer Churn was ~15.1% in FY17 Competition For many years Foxtel was the primary provider of subscription television in Australia. More recently, competitors providing low cost video streaming on demand have offered customers alternative viewing options. Facing increased competition from low-cost streaming services such as Netflix and Stan, as well as digital media companies such as Google, Facebook in the advertisement market. 3
3 Why Pega? Recognised as industry leader for NBA Multi-channel capability (inbound, outbound, digital, and sales channels) Uses real-time data (rules, adaptive and propensity models) Provides business framework to generate real-time offers based on various levers Flexibility offered to tailor the solution per organisation s needs Speed to implement 4
4 The Opportunity 1 Targeted offer cost savings 2 Improved customer churn via better recognition of customer value 3 To provide a consistent customer experience across touchpoints with lower reliance on agents 4 To create new revenue streams by enabling sales conversations in the traditional call centre environment 5
5 Project Scope RETENTION CROSS/UP SELL DIGITAL 150+ agents Spread across 3 sites 600K interactions per year 900+ agents Spread across 4 sites 5.5m interactions per year 2 touchpoints Web and App 17.5m interactions per year 6
6 Our Journey CXO Discussions Implemented Retention Pilot Refined Business Case Implemented Cross/Up-sell Continuous Improvement NBA Becomes BAU March 16 Sep 16 Dec 16 May 17 Sep 17 Apr 18 Signed the Deal 4 Months 8 Weeks 8 Weeks 5 Weeks 3 Months 7 Weeks 7 Weeks 7 Weeks 5 Months 8 Weeks Signed Pilot July 16 Nov 16 March 17 July 17 Feb 18 Worked on Business Case Pilot Measurement Implemented Retention Use-case Implemented Digital* Implement Inbound Sales Tested with Business & IT owners 7
7 One of the fastest ever Pega NBA implementations 8
8 Set Up For Success The team is structured into workstreams, with business and technical functions working closely to ensure NBA aligns with Foxtel s priorities Value Realisation Office Program Management Value Realization Office Responsible for tracking business performance Data and Analytics Campaign and Offers Channel and Change Enablement Technical Delivery and Support Data & Analytics Utilize customer analytics to enable customer insights Monitor performance for continuous feedback and improvement Campaign & Offers Refine BTL offer catalogue Enable targeted customer offers Ensure alignment with Foxtel campaigns Refine offers and offer prioritization based on performance Channel & Change Enablement Integrate and align channels Enable agent capability and business readiness Ensure alignment of KPIs and incentives Provide continuous feedback loop Technical Delivery & Support Configure use cases for Retention, Cross-sell and Up-sell, across Contact Centre and Digital Real time, adaptive modelling Flexible configuration to adapt to changing market dynamics Integrate with existing Foxtel systems, mobile app and website Provide secure access, and system support and maintenance 9
9 Best Strategies NBA Solution Real Time Context Information Customer Data Interaction History Business Rules Customer real time context on each interaction 400+ attributes about the customer Customer actions in the recent past Contact policies Eligibility Compatibility Prioritisation Insight Action Analytics Models Churn Risk model, Customer LTV, Retention budget, Beta distribution, Randomisation Contextual Understanding Pega s Adaptive model Retention Offers Cross/Up-Sell Offers Service messages Digital Offers Service messages * Ready for Production 10
10 Key Takeaways Experiment Furiously Fast Experience-Led Delivery Leverage Out-ofthe-Box Solution Manage Quality Well Don t Reinvent the Wheel Ran multiple A / B experiments simultaneously across segments of customers. Experimented with various Analytics models. Ensured Customer, Business, and Agents needs and experience are met through Design Thinking workshops and UX, done by Fjord, Accenture s Design Agency. Researched out-ofthe-box solution and leveraged to the extent possible without any specialisations. A strong focus on quality with close monitoring of the Compliance Guardrail score. Maintained the score above 95+ throughout project lifecycle. Engaged our global SME pool spread across industries and organisations to do our prep-work. 11
11 Benefits Achieved Implementation in record time resulted in faster go-to-market and benefits realisation Bottom line benefits Increased revenue Improved churn Offer spend reduction Maximise customer lifetime value Cost centres become profit centres Business case targets 1%+ cross-/up-sell conversion 0.5%+ retention save rate increase >7.7% retention offer cost savings Experiential benefits Net Promoter Score improvements Recognise high value customers Personalised interactions Less reliance on employee knowledge accumulation 12
12 Key Lessons Learnt High risk, high reward approach of selecting Retention for Pilot Strong partnership is paramount Solid project governance is the key Bake value realisation into project Underpin robust business case Adopt Agile working model Change Management is NOT a nice-to-have Go Cloud 13
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