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Cablecom Dramatically Reduces Customer Churn with SPSS Predictive Analytics Software

  • June 18 2008, 4:07pm EDT

REVIEWER: Federico Cesconi, head of Customer Insight and Retention for Cablecom GmbH.

BACKGROUND: Cablecom GmbH is the largest cable network operator in Switzerland. It concluded 2007 with more than 1.6 million television, 455,000 Internet and 288,000 telephony customers - approximately 73 percent of the Swiss cable TV market, including a major presence in 14 of the 16 largest Swiss cities.

PLATFORMS: Oracle data warehouse, Microsoft SQL Server.

PROBLEM SOLVED: Cablecom constantly battles customer churn. Being able to target customers efficiently with tailored marketing initiatives is crucial to continued success. Insight derived from SPSS Predictive Analytics software enables Cablecom’s Customer Insights Group to identify the point at which customers become dissatisfied - before they decide to switch to another provider. Then, through more proactive outreach, Cablecom’s Customer Retention Group determines, addresses and rectifies customers’ key pain points, resulting in dramatically improved retention rates. Early results show customer churn rates dropping from an average of 19 percent to 2 percent.

PRODUCT FUNCTIONALITY: SPSS Clementine helps model future behaviors so that Cablecom can make accurate predictions about how customers will act. SPSS Dimensions allows Cablecom to proactively incorporate survey data about customers’ attitudes and preferences. And SPSS Text Mining for Clementine leverages critical insights locked in unstructured data that originates from conversations with call center agents (answers to questions such as “How satisfied are you? What is important to you? Where can we improve?”) as well as interactive voice response (IVR) systems. Cablecom also deployed Predictive Enterprise Services (PES), SPSS’ unified platform that provides a systematic approach to adopting and deploying predictive analytics.

STRENGTHS: Cablecom chose SPSS Predictive Analytics software because its products directly help improve business processes. Each member of the SPSS predictive analytics product family produces unique customer insight and feedback that create forward visibility used in decisions made every day. Used together, these tools allow Cablecom to capture and analyze various touchpoints for a complete view of customers. With SPSS, Cablecom collects customer data at different stages and times in the customer lifecycle to accurately determine if it’s meeting customers’ expectations or where it might be falling short. That information also enables Cablecom to see how effective it is in addressing churn from an operational standpoint. Cablecom has been able to identify those customers who may be unhappy with its service with almost 80 percent accuracy.

WEAKNESSES: The hardest part about using SPSS technology is getting comfortable with the current version before a newer one is released.

SELECTION CRITERIA: Cablecom first purchased statistics and data mining from SPSS following an extensive software evaluation process involving two other finalists, and then later added survey and text mining software as needs expanded. Cablecom initially made a small investment in SPSS with the goal of scaling up later. Cablecom added text mining in early 2007 to increase effectiveness of its customer outreach program and soon realized a 53 percent turnaround of unsatisfied customers who then became satisfied customers.

DELIVERABLES: With SPSS predictive analytics software, Cablecom better understands and predicts future customer behavior by analyzing, modeling and scoring descriptive data (demographics, characteristics, etc.) and transactional data (offers, results, clickstream, etc.) from its operational systems, as well as other attitudinal data gathered through customer feedback and surveys. Cablecom incorporates more than 60 different criteria to analyze customers in order to truly see the world through their eyes.

VENDOR SUPPORT: SPSS was there for us long before and after implementation. SPSS’ experts are available to answer questions, and the company reaches out on a regular basis to provide updates on any new functionality that becomes available. Cablecom views it as an investment not only for today, but tomorrow and beyond.

DOCUMENTATION: SPSS documentation was thorough and easy to understand.

SPSS Clementine, Dimensions, Text Mining for Clementine and Predictive Enterprise Services
233 S. Wacker Drive, 11th Floor
Chicago, IL 60606
(312) 651-3000


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