Case Study – Slovenský plynárenský priemysel, a. s.
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Slovenský plynárenský priemysel, a. s. (SPP)
Analytics help reduce churn and gain new customers
Slovenský plynárenský priemysel, a.s. (SPP) has more than 150 years of experience in the gas industry. In 2012, after liberalization of the country’s energy industry, SPP entered the electricity market. Today, SPP is one of the largest energy suppliers in Slovakia, offering both natural gas and electricity.
In deregulated energy markets, incumbent suppliers battle with newcomers for market share. As both the gas incumbent and a new electricity supplier, SPP faced a 2-front conflict, needing to maintain its leadership position in the gas market while capitalizing on its brand recognition to improve its share in the electricity market.
What Makes It Smarter
Using customer segmentation, achieved by analytical modeling, SPP can reach the right customers with the right product offers. A new, targeted multichannel campaign strategy helps it cross-sell electricity to its gas customers and offer new customers special incentives for switching to either its gas or electric services. A customer-loyalty index and
early warning indicators help the company reduce churn by quickly reaching out to less-than-satisfied customers with new offers and better customer service.
Real Business Results
The company has achieved targeted marketing campaign success rates that are 3 – 4 times higher than previously untargeted campaigns. Churn-reduction campaigns are now 50 percent more efficient thanks to early warning indicators and alerts, allowing the company to reach out to customers sooner. The solution improves overall campaign efficiency and increases the number of campaigns that the company can launch.
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