Home.ru" using GlowByte Consulting passed to the system of selection of individual rates

2018: Transition to the system of selection of the personified rates

The algorithms of formation of individual offers and rates for customer retention created by telecom operator Home.ru" and GlowByte Consulting c use SPSS Modeler and IBM Interact, allowed the operator to increase revenue from transition to more highly profitable rates for 20% and to 7% of campaigns for work with outflow. On June 14, 2018 reported about it in GlowByte Consulting.

From GlowByte company the project was supervised by Valentin Marenich, the head Advanced Analytics.

Home.ru" cooperates with GlowByte Consulting since 2013. In 5 years of the company implemented projects on forecasting of outflow and optimization of communication channels with clients using systems IBM Unica and IBM Interact.

Prerequisites

Before start of the draft of the offer on change of a tariff plan formed for mass segments and relied on logical rules, without individual preferences of the client. Process was controlled manually: call center agents during a call, revealing needs of the subscriber, independently selected the most suitable rate.

System of selection of rates

The system of selection of the personified rates based on client experience and the history of actions of the subscriber became the solution.

In 2017 Дом.ru and GlowByte Consulting companies created analytical process of formation of offers which considers the history of interaction of provider and the client. For this purpose it was required to solve two main objectives: change a translation algorithm of clients to new rates and re-structure work with outflow.

Project Progress

To save clients, call center agents of "Дом.ru" used uniform tool kit, and the employee looked for the individual solution independently in the course of dialog with the client. Success of communication in many respects depended on skills of the operator.

To estimate what offers most effectively hold the client depending on the reason of his address, "Дом.ru" and GlowByte analyzed data in a year — about 4 million incoming calls. On the basis of data the complex of predictive models and an algorithm of automatic selection of the optimal offer was created. Thanks to methods of machine learning it was succeeded to implement the system of regular revaluation of relevance of offers and to estimate marginality of the client after obtaining the new offer by it.

Unique tariff plans with personal filling for each client who participated in a campaign were as a result created. At a call the operator read in advance prepared target offer created on predictive model that increased the probability of affirmative answer and effectiveness of a campaign.

Project Results

In general due to application of predictive analytics and analytics of Big Data:

• for each client participating in a campaign for change of a rate the personified tariff plans satisfying it requirements were created.
• the number of transitions to more highly profitable rate increased by 27%.
• revenue from campaigns for transfer of clients to new rates increased by 20% — thanks to accounting of individual need of the client.

On a response of Дом.ru operator, process of work for the staff of call centers became easier and more effective. Instead of "manual" selection of the offer the employee receives the recommendation about a deduction method which considers the address reason, the history of interaction with it and selects an optimal method of its deduction. Thus, any operator, regardless of skill level, can propose to the client the most appropriate solution.

Among project deliverables:

• Process of work of staff of contact centers is simplified and automated: the attention of the employee is concentrated on quality of the solution of a question of the client.
• Thanks to accounting of individual needs of the client specific revenue from a campaign for customer retention grew by 7%.

The methods of predictive analytics applied in "Дом.ru" will be effective for banks, retail and other types of business, noted in GlowByte Consulting.

2015: Creation of an analytical system based on IBM SPSS

The Glowbyte Consulting company and Дом.ru telecom operator created an analytical system which allows to reveal customer groups with the low level of loyalty to the operator and to hold the target events directed to its increase.

A set of the analytical models developed by GlowByte Consulting company based on IBM SPSS is the cornerstone of a system. The data from the system of billing added with social and demographic characteristics of the customer base and loaded into the data mart which is specially created within the project became data sources for the analysis.

The first campaign waged using data retrieveds in three months after the beginning of system operation showed increase in level of loyalty of subscribers in a target group for 10% and also reducing costs of customer retention due to more target marketing.

"For a test campaign we selected several cities with similar characteristics and using a new system calculated the level of loyalty of each subscriber. It allowed us to select a target group to which it is necessary to apply measures for deduction. We separated the selected subscribers into two parts – control and "fighting". No measures were applied to a check group, we used its statistics for comparison with "fighting" most precisely to define effect of the measures taken by us. Results were very impressive: already within the first test campaign we saw increase in level of loyalty in comparison with control sample. We can tell with confidence that the analytical system developed by GlowByte Consulting gives us new tools for increase in loyalty of subscribers and reduces the cost of their deduction. Specialists of GlowByte Consulting perfectly performed the work. We plan further joint development of this project", – the director of the product "Дом.ru" Chazov Andrey comments on project results.

Primo Stanislav, the head of practice of Advanced Analytics of GlowByte Consulting company noted: "The problem of preserving of the customer base sharply rises not only in telecom industry. In present economic conditions subscribers actively look for methods of cost reduction and are more inclined to a research of the competing offers. According to our statistics 70% of clients change the operator "quietly", without advertizing the reasons of the discontent and, as a result, without leaving to service provider of an opportunity to react. We are ready to offer customers the fast-paying-off techniques of prediction and reduction of outflow of clients allowing not only to select preventively less loyal clients at early stages of discontent, but also to reduce the costs for their deduction based on experience of our consultants, advanced technologies of Data mining and Predictive Analytics and the best tools of the leading vendors".

GlowByte Consulting and "Дом.ru" will continue to cooperate. The implementing solution IBM Campaign for automation of planning and execution of all marketing campaigns, including campaigns for increase in loyalty started.