CCA Fall 2013: Exacaster predictive Churn and Upsell solution
Steve Brumer, Partner at 151 Advisors discusses mobile strategy, churn prediction and software with RCR Wireless News at CCA Fall 2013 in Las Vegas, Nevada. While reviewing mobile strategy and programs to predict and prevent increased churning rates, the Lithuania-based company Exacaster was used as an example. The company expanded to the North American market over a year ago, and it uses a SaaS-based platform and model to monitor the subscriber activity and trigger increased rates of churning, the likelihood of discontinuing service with a carrier. Most companies do it on their own and big companies usually develop their own system, but Exacaster provides this program for them to use instead.
Exacaster is a big data predictive analytics technology company. They use software platforms and tools to make real-time predictions and recommendations. Their main offering is the Exacaster Marketing Suite that helps telecommunications and retail marketers. Exacaster’s focus is churn prediction, up-sell strategy, and campaign management for mobile carriers. Using a SaaS-based platform, the automated system uses information from billing systems and a patented algorithm to predict the churn rate for subscribers. For example, the system looks for if a subscriber has a coverage issue, a bad rate plan, or an outdated device.
When the system predicts which subscribers have the highest likelihood to churn, Exacaster can implement an up-sell program to create a customized marketing sales plan to lower the churn rate. The plan could include a device upgrade, a lower rate, or increased texting minutes for the same amount of money. This combination of predicting who is likely to churn with a marketing plan provides an understanding of the problem while also providing a solution.
For a carrier interested in using this module, the touchpoints change across the board, affecting the base of every department. The beginning of implementation will be the hardest part because there is a need for an understanding of the subscriber history. After, the system is live with a constant stream of updates. The marketing department is mainly responsible for implementation and creating good packages to pitch to subscribers with a high likelihood of churning. If successful, the churn rate is lowered and subscribers are happy with their carrier.
One challenge to the system is integrating with CRM systems, which requires customization to work efficiently with each carrier. For niche solutions like Exacaster, the adopting the system should be customized and integrated, based on an understanding of what Exacaster can do.
Churn is a serious concern during a time when competition among carriers is steadily increasing and evolving, offering new deals and packages to convince subscribers to switch carriers. Carriers must make their service unique and keep a base of mobile subscribers, which requires a low churn level. Even a small amount of churn reduced can have a large impact on ROI.
For companies like 151 Advisors working with Exacaster to predict and prevent churning, the next steps revolve around education. How can consultants help companies like Exacaster? How can they help carriers make more money? What can be done to produce recurring revenue stream models?