As overall market growth slowed from an annual increase of 50% to just 5%, MobileCo realized that its 35% customer-retention rate needed immediate attention. But it lacked a clear view of the reasons it lost customers, and what steps occurred along the customer-churn journey. And because each department within the company developed its own programs to retain customers, there was no unified view of its customers' issues, and no standardized way to design and implement effective customer-retention programs. The company's fragmented data management system prevented it from identifying and tracking customers or obtaining user feedback. The company also believed that relatively low brand awareness compared with its peers hurt its ability to win new customers in an increasingly competitive environment.
- Working with Bain, MobileCo is poised to increase its customer-retention rate to 60% by 2022, almost double its current rate of 35%, and on par with its strongest competitors.
- The new organizational structure helped the company overcome a fragmented, nonstandardized approach to engagement, and put in place the IT systems needed to support a unified view of the customer journey and to capture and report critical KPIs. MobileCo can now leverage its new IT capabilities to, among other things, develop a user-churn prediction model.
- MobileCo identified 18 categories of improvement initiatives, spanning marketing, service, user engagement and other areas. As a result, it launched programs to address many customer pain points, including remote diagnosis and repair, an improved user app, enhanced user ID and registration, new product/trade promotions, the rollout of new cloud services, and many other improvements designed to improve virtually all aspects of the user experience.
- The company also developed a sophisticated dashboard that provides executives with a clear look at user-churn data, customer satisfaction levels, dozens of operational indicators, verbatim comments from users, incentive plan performance and many other metrics, with most measures viewable by region, province and city.