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Maximiliano Peppe Manager Customer Experience and Market Research Cablevisión Fibertel

Cablevisión is one of Argentina’s leading media and communications companies, providing cable TV services to 3.5 million subscribers and internet services to 1.8 million more. Founded in 1981, the company employs more than 10,000 people.

Business challengeCablevisión wanted to boost loyalty and minimize churn by increasing service quality and customer satisfaction. It needed a smarter way to identify unhappy customers and resolve their issues.

TransformationBy correlating the “health” of customers’ modems with the results of satisfaction surveys, the company can predict which customers are dissatisfied and proactively intervene to improve service and reduce churn.

CablevisiónPredicting customer satisfaction based on network health helps boost loyalty and reduce churn

“Predictive service quality management helps us deliver proactive customer care to prevent churn.”

Maximiliano Peppe Manager Customer Experience and Market Research Cablevisión Fibertel

Business benefits:

Boosts customer satisfaction by predicting and resolving service quality issues

Focuses technicians on solving problems that have the biggest impact on customers

Cuts the cost of customer service by reducing complaints and technical support requests

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Recipe for repeat business

For internet service providers (ISPs), maintaining a reliable revenue stream depends on keeping customers happy and minimizing churn. One of the most important factors in customer satisfaction is the quality of service that an ISP delivers. If a customer’s internet connection keeps dropping, or if the line speed is regularly slower than expected, the impact on satisfaction and loyalty can be severe.

Andrés Ezequiel Romeo, Manager Analytics, Customer’s Voice, Cablevisión Fibertel, explains: “Our customer satisfaction model (multivariate regression) shows us that service quality has a far greater impact on their satisfaction than any other factor – even including the price of the service. This means that in order to convince customers to stay with us, rather than moving to another ISP, we need to detect and resolve connectivity problems early.

“One of the key challenges we face is identifying customers who are unhappy with our services. We carry out regular satisfaction surveys, but that doesn’t give us the full picture, because many subscribers choose not to participate in surveys. And if customers don’t call the helpdesk when they have a problem, we often have no feedback from them at all.”

Maximiliano Peppe, Head of Quality, Metrics and Market Research at Cablevisión adds: “If the first time we realize that a customer is unhappy is when they cancel their contract, that’s much too late. We need to diagnose the problem before they decide to leave.

“We wanted to find a way to predict which of our internet subscribers are dissatisfied, regardless of whether or not they complain. Our idea was to gather data about network status from customers’ modems and compare it with the results of our satisfaction surveys, to identify the key network problems that seem most likely to create dissatisfaction.”

Focusing on the customer experienceTo analyze the huge volumes of service quality data generated by the modems of its 1.8 million internet subscribers, the company needed a powerful analytics engine. Working with IBM Business Partner BeSmart and the IBM® Global Business Services® Business Analytics & Strategy team, Cablevisión decided to deploy IBM SPSS® Modeler, a sophisticated predictive analytics platform that makes it simple to mine and model large volumes of data.

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“We selected SPSS Modeler because it enables us to perform many different kinds of complex big data analyses extremely quickly. IBM and BeSmart helped us gain the skills to start using the solution effectively from day one.”

First, Cablevisión used CSAT models to analyze over 25,000 satisfaction surveys. Next, the company used 42 million daily network indicators to examine the health of those customers’ modems in the 15 days preceding the survey.

Maximiliano Peppe adds: “Our goal was to identify correlations between specific connectivity issues and negative CSAT scores. For example, we wanted to see whether there was a relationship between a modem frequently dropping its network connection and negative customer feedback. “We found that there was no single

connectivity problem that could account for all reported dissatisfaction. To get a clearer view of the issues that spark discontent, we had to deepen our analysis to examine a range of variables simultaneously.”

Cablevisión used regression tree techniques to map out various combinations of connectivity problems, and give each combination a score based on how likely it was to cause dissatisfaction in the customers who had completed the surveys.

Equipped with this insight, the company then examined the network health of a larger group of customers, and was able to predict which customers out of that total population were most likely to be dissatisfied with the service quality.

Providing sparkling customer service

“Our findings were eye-opening,” comments Andrés Ezequiel Romeo. “The analysis revealed that the group of customers that was most likely to be dissatisfied by service quality made up just one percent of the total subscriber base. This group’s average dissatisfaction rate was twice as high as normal customers; they were four times more likely to call our contact center, and 3.5 times more likely to require a home visit by a technician.

Please Recycle

Solution components•IBM® SPSS® Modeler 16

•IBM SPSS Statistics 21

•IBM Business Partner BeSmart

•IBM Global Business Services®

Take the next step

To learn more about Cablevisión Argentina, please visit www.cablevisionfibertel.com.ar

IBM Analytics offers one of the world’s deepest and broadest analytics platform, domain and industry solutions that deliver new value to businesses, governments and individuals. For more information about how IBM Analytics helps to transform industries and professions with data, visit ibm.com/analytics. Follow us on Twitter at @IBMAnalytics, on our blog at ibmbigdatahub.com and join the conversation #IBMAnalytics.

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“We contacted this subset of customers to verify that they were actually having problems with service quality. In 90 percent of cases, the customer confirmed that our diagnosis was correct. When we offered to send a technician to their home to resolve the issue, 70 percent accepted.”

Maximiliano Peppe continues: “The customers appreciated our proactive approach, so this initiative has boosted satisfaction and loyalty.

“Furthermore, happy customers are more likely to recommend our services to friends and family, so we gain reputational benefits too.

“Additionally, identifying service issues proactively means that fewer customers need to call the contact center, so we save money on managing complaints.”

The company is now placing customer satisfaction management at the heart of its strategy, and is incorporating proactive network troubleshooting into its regular operations.

Each month, the management committee analyzes the evolution of the client experience, and discusses ideas for further improvements.

Andrés Ezequiel Romeo concludes: “Thanks to IBM and its Analytics products, we can provide better service than ever before and maintain high levels of loyalty among our subscribers. These capabilities will deliver real competitive advantage going forward.”

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