- >€50bn annual revenue
- Leading energy supplier in Europe
- Company serves more than 20 million electricity customers and 10 million gas customers
Situation and Objectives
- Segment residential customer base using ERP/CRM data
- Develop customer value and churn prediction model
- Increase overall efficiency of marketing spend
- Conducted market research study with customers to segment them in an actionable way.
- Segmentation criteria were finally customer value and churn risk. This led to three distinctive segments: Innovators, traditionalists, and bargain hunters.
- Identified their needs in terms of product, price, promotion and channel and developed measures accordingly.
Customer Segmentation Concept
- Developed a customer segmentation concept based on a multi-dimensional scoring model.
- Developed a customer retention strategy, including target segments, targeted marketing, and the sales channel mix.
- Efficiently allocated marketing and sales budget resources based on customer value.
- Designed a strategy for efficient management of marketing and channel partners, and defined a specification sheet for IT system integration.
- Churn rate of core segment reduced by ~28%