Cancellation rate: halved in one fell swoop. This is how added value works.
From energy supplier to customer magnet.
A north-west German energy supplier with annual sales of over 500 million euros was looking for specific measures to significantly reduce churn rates – a problem faced by all players in price-sensitive commodity markets. Mehrwerk developed a data-based value-added solution that quickly achieved sustainable success.
The challenge
- Increasing the customer loyalty of an energy supplier
- Reduction in the termination rate
- Increase in sales of fixed-term contracts
- Securing the customer base in the basic supply
Strategy
- Introduction of an optional value-added package that can be activated free of charge around
for everyday and household safety
Measures
- 24/7 emergency assistance for tradesmen with reinsurance (€1,000 per year)
- All-in-one warranty extension for all household and electrical appliances
- Communication via website, OOH, radio, radio, TV, regional online campaigns, inbound and outbound customer service and direct marketing
Success
- over 10% of the addressed customer base activated the product
- Cancellation rate halved for customers with activated value-added package compared to the reference group
- Over 10,000 successfully completed customer cases with positive customer stories
Conclusion: Every second customer ready to jump ship is retained.
Customers with an activated value-added package are convinced in the long term: this is demonstrated by the drastically reduced churn rate in this group. This success is directly attributable to the value-added services, which are highly relevant for this customer group.
Do you need a customized energy supplier value-added solution? Talk to me.
Sören Timm, Plant Manager Sales, is your
contact for the energy supplier business.
