Foxtel: Ramping up retention with next best action
> 0.5% reduction in churn rate
Improved NPS and Voice of the Customer scores
“We used to have a one-size-fits-all approach to retention. With Pega, we’re targeting customers individually—dramatically improving our service levels and reducing our spend.”
The Business Issue
For years Foxtel had been the primary provider of subscription television in Australia. But due to new competitors providing low cost, on-demand video streaming, and the emergence of digital media companies, Foxtel’s 2.8 million subscribers now had alternative viewing options.
Customer churn was increasing and the retention strategies in place to “save a customer at all costs”—whether they were paying $26 a month or $137 a month—fueled an unsustainable operating model.
Foxtel needed a smarter approach to retention – one in which they could identify their high value customers and provide personalized service levels across all touchpoints and channels.
Foxtel implemented the Pega Customer Decision Hub on Pega Cloud within seven weeks. They now leverage over 400 customer attributes – including revenue per user, current packages, payment habits, and interaction history – to make every next-best-action decision. They combine this with contact policies and eligibility rules to ensure they know the optimal method to engage every customer – and how much to spend while doing so.
Using Pega, Foxtel optimizes (per year):
- 600K retention offers
- 5.5M cross sell / up-sell offers
- 17.5M digital interactions (Web and mobile app combined)
This optimization has led to significant results:
- 70% save rate with substantial improvement in high CLV subscribers
- 29% reduction in average offer costs
- 20% reduction in repeat offer costs
- 8% cost saving for retention offers
Industry: Communications Service Providers
Product Area: Customer Decision Hub
Product Area: Pega Marketing for Communications
Challenge: Customer Lifetime Value