Business Boost: In 2013, DIRECTV PanAmericana's new business analytics solution saw almost a20 percent churn improvement and from 30 percent to 50 percent perception improvement in main touchpoints.
As the leading satellite television provider for Latin America and the Caribbean, DIRECTV PanAmericana serves nine territories, reaching more than 6 million customers with its exclusive content, excellent customer service, and continuous deployment of the latest entertainment technologies. Yet, while information plays an essential role in any business, the huge increase in consumer data required DIRECTV to reconsider how it analyzes, classifies, and stores this information in an effort to continue providing the best entertainment experience possible.
Ultimately, DIRECTV aims to always surprise its customers at every point of contact by remaining vigilant of their evolving expectations.To accomplish this, the Strategy was to implement the NPS Operating Model with a Strong focus on NPS Prediction, monetization, continuous improvement process implementation, and all of this integrated to churn impact analysis and execution.
Thus, in 2011, DIRECTV partnered with SAS to implement an integral business analytics solution that answers numerous questions about the organization: Which customers are likely to churn and what factors lead to their decision? What are the main drivers behind customer satisfaction and how do promoters and detractors impact the bottom line? Is the brand upholding its promises and performing as expected across all touchpoints? Does DIRECTV recognize employees' efforts in relation to customer impact and do these employees understand how their roles influence the customer experience?
Because many of these questions had yet to be answered, DIRECTV created an analytical roadmap that served as the foundation for its ACE (Analytical Center of Excellence) as part of panregional Customer Experience area. This program was designed to both supports the end-to-end analytical needs of NPS Operating Model at every touch point, and to promote the use of analytics. Though DIRECTV boasts an array of experienced, qualified employees, the company needed to capitalize on their knowledge by providing a platform where they could share their experiences with one another. Thus, to enable sustainable decisions, the ACE was designed to address technology, consulting, education, and administration within the context of the business to analyze and reveal any shortcomings.
For instance, DIRECTV took an integral approach as a solution catching several business initiatives at the same time (Campaign management, predicting Models, closed loop analysis, data Visualization, Advanced Reporting, etc). By implementing the SAS tools and training key users, employees gained easier access to user-friendly data, achieving enterprise wide analytics support. Said tools also enabled users to view information from different sources and countries on one platform, thereby providing analysts with the necessary information to make their work more time efficient.
DIRECTV's findings also revealed the need for contact automation, which allows the company to reduce unnecessary contacts, such as calling valued customers during collection campaigns, and increasing necessary contact, such as reengagement calls to those at high risk for churn. Voice of the customer text mining enabled the provider to dive even deeper into customer opinions, uncovering the drivers behind satisfaction and the problems that create detractors. DIRECTV's underlying goal to convert detractors into promoters remains at the center of its strategy, for these extremes can have varying impacts on the bottom line.
Detractors, overall, are 110 percent more likely to churn voluntarily, each producing 30 percent less income for the company, while promoters carry 2.5 times greater value than detractors. However, since building out its business analytics abilities, DIRECTV saw from 30 percent to 50 percent perception improvement in main touchpoints and churn reduction by 20 percent in 2013 alone, highlighting the solution's success and its promise for the future.