Win with Advanced Business Analytics: Creating Business Value from Your Data

BUSINESS CHALLENGE

In early 1999, when one of the coauthors first joined Fido (Rogers Wireless company), the leading Canadian wireless service provider, a pressing problem at that time was the increasing customer attrition or churn and the related cost of trying to reactively save defecting customers. At that time, the company mission was to deliver a no-contract service to its customers, counting solely on quality, service, and customer loyalty to prevent subscribers from leaving to use a different wireless provider. The Fido No Contract mission was successful during its early years but later turned out to be cost prohibitive for the company, and customer profitability suffered. Fido was somehow flying blind at the time, counting on the goodwill of the subscriber base, but the increase in churn soon became obvious and evolved into the most pressing business problem. It quickly became the primary company business challenge that it was eager to address on all fronts: from service marketing sales and finance to executive leadership.

When JP Isson joined the company and met with the marketing and service teams, this was communicated as the top priority, the main business challenge the company had on its docket. Given this, JP decided that this was the right birthplace to build and put business analytics to work. We will go back to this churn project and the related cost savings from leveraging customer lifetime value models and the proactive attrition campaign in Chapter 10, “Winning ...