- Case Studies
- Stopping Customer Churn
Stopping Customer Churn
10th December 2014
Client: Major Insurance Company (GI)
Issue: Increasing customer churn
Our client had seen churn increase by 5% over the previous 12 months. They didn’t know why this was happening and didn’t know how to reverse it. White Space was engaged to provide some answers, and shape how our client spent a £10m customer improvement budget set aside to address this issue.
White Space results:
Our market analysis identified two key causes of customer churn. Our client was underperforming against one of them, with two particular ‘gripes’ held by their customers. We also identified two competitors who were performing much better in this area. We therefore recommended the client spend a large proportion of their £10m budget to overhaul this aspect of their customer experience, adopting transferable aspects of their more successful competitor’s approach.
How we did it:
At its heart this project was very simple: it consisted of a major ‘one off’ customer satisfaction survey, followed by primary competitor research.
Customer satisfaction survey:
- Online survey of 2,000 client customers (mixture of active and churned customers)
- Survey mapped out customer satisfaction across all key areas of the product, pricing and customer service
- Customers also asked which competitors they see as ‘leading’ in areas
- Regression analysis performed to identify key drivers of satisfaction and churn
Primary competitor research:
- Research focused on competitors identified as ‘best-in-class’ by the customer survey
- Interviews with customer facing staff to map out competitor propositions and customer service approaches (via mystery shopping methodology)
- 10 interviews with recent senior competitor staff, able to shed light on competitor strategies, delivery models, costs and initiatives