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Vanguard Cellular

Churn - or customer defection - is a very costly problem, especially for cellular companies where it's estimated churn rates approach 25 percent a year. With the customer growth rate slowing, it becomes increasingly important to control and reduce churn. Vanguard Cellular Systems had to replace about a quarter of its 700,000 customers annually. To reduce this drain on its bottom line, Vanguard used SPSS, AnswerTree and Neural Connection to identify its most desirable customers. Then, marketers concentrated efforts on prospects with the most "average lifetime value." As a result, Vanguard has uncovered new paths to increased revenues - and estimates a savings in the millions of dollars each year.