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VTR GlobalCom

Situation

The leading pay-TV provider in Chile, VTR GlobalCom, provides more than 600,000 Chileans with phone, cable television, and broadband Internet services.

Challenge

VTR sought an efficient way to effectively market to its large subscriber base. This included analyzing market research data to improve customer satisfaction as well as segmenting customers for more strategic cross-selling, up-selling, and retention campaigns.

Solution

After careful deliberation, VTR chose PASW Statistics Base for market research purposes, and PASW Modeler to segment its subscribers and develop acquisition, cross-sell, up-sell, and churn models.

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Results

VTR GlobalCom, a subsidiary of U.S.-based United GlobalCom, provides Chileans with phone, cable television, and broadband Internet services. It has the country's largest number of cable subscribers, second most phone customers, and was Chile's first broadband Internet Service Provider. The company has 2,324 employees and $230 million in revenue.

With 600,000 customers who purchase more than one million services, VTR GlobalCom needed a sophisticated software solution to make sense of the large amount of customer data it possessed so that it could develop more strategic marketing programs. After considering several statistical analysis packages, the Market Planning and Bundling Department purchased PASW Statistics, a statistical and data management software package, and PASW Modeler, a data mining workbench from SPSS Inc.

"We searched for sophisticated analysis tools, capable of interacting with large datasets and advanced statistical processes," a spokesperson for the Market Planning and Bundling Department said. "PASW Statistics and PASW Modeler were the software packages that best fit our needs."

PASW Statistics has been instrumental in satisfaction surveys, service quality research, and evaluating when new products should be launched.

Spokesperson for the Market Planning and Bundling Department
VTR GlobalCom

Improved ability to perform market research

The company's Market Research division is constantly generating new studies that require statistical processing. They used PASW Statistics to analyze, process, and interpret marketing surveys covering topics ranging from customer satisfaction to new product introductions.

"PASW Statistics has been instrumental in satisfaction surveys, service quality research, and evaluating when new products should be launched," said the Market Planning and Bundling Department representative.

Increased retention by 13 percent

The Market Planning and Bundling Department used PASW Modeler to develop acquisition, cross-sell, up-sell, and churn models. According to the spokesman, they appreciated PASW Modeler's combination of "superior analytical power" and its "user-friendly interface." These features enabled VTR to "clearly understand the modelbuilding process and its application to its commercial operations."

"With PASW Modeler, we're able to quickly predict who in our customer database is more likely to churn and then execute retention campaigns before it is too late," the Market Planning and Bundling Department spokesperson continued.

Using PASW Modeler, VTR identified churners based on factors such as complaint type and purchase sequence. After flagging these customers, VTR targeted them with retention campaigns designed to maintain customer loyalty, as well as identify cross-sell/up-sell opportunities. In one instance, by offering discounts on digital cameras, VTR not only boosted customer satisfaction, but also motivated a number of customers to upgrade to the company's broadband Internet service, as a means of accessing the downloaded pictures.

Just as important as identifying customers to retain, it's also critical to identify which customers are not worth keeping. By using PASW Modeler, the Market Planning and Bundling Department identified a segment of impulse buyers that weren't profitable. As a result, VTR set higher entry requirements, avoiding the cost of acquiring and retaining these customers. In one year, these types of marketing programs improved VTR's retention by 13 percent.

"Choosing PASW Statistics and PASW Modeler has been very advantageous," the Market Planning and Bundling Department's representative said. "Proof lies in the results achieved and the fact we rely so much on the tools. We will continue to seek other SPSS Inc. tools that will help us gain competitive advantage."