The company was experiencing higher than anticipated subscriber attrition across the customer lifecycle and needed to 1) reforecast projected customer losses, 2) understand key drivers of attrition, and 3) identify the most promising levers that would improve retention. Cicero used a multi-pronged approach that included analyzing vast amounts of internal client data and conducting in-depth interviews and surveys of current and lapsed customers for the company and its competitors.
The one-two punch of Cicero’s research and analytics enabled the company to better understand who its customers were relative to those of its competitors, what its customers cared most about, and how customers desires and needs changed as they moved through the lifecycle. Cicero’s work also included the identification of unique user segments and an understanding of their relative value and attrition risk, and the identification and prioritization of a series of targeted retention initiatives, which Cicero helped to launch and test during the project.
Cicero’s analytics experts also identified the weaknesses of the pre-existing attrition model and developed an improved model and a reforecast of future attrition rates. To ensure the more advanced model would be used by the client on an ongoing basis, Cicero worked with the internal team to incorporate it within the company’s master financial budget model, and also developed attrition reports to allow for an ongoing measurement of progress against retention goals. Ultimately, Cicero worked shoulder-to-shoulder with the internal team to develop and implement a robust action plan projected to reduce steady state attrition by 300bps, effectively improving the company’s valuation by $300MM.