SPSS - UK Customers

VTR GlobalCom

Segmenting customers and improving satisfaction with SPSS Inc. analytics

The situation

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

The challenge

VTR sought an efficient way to market to its large subscriber base. In particular, it wanted to analyse market research data to improve customers’ satisfaction, and to segment customers for more effective cross-selling, up-selling, and retention campaigns.

The solution

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

Choosing IBM SPSS Statistics Base and IBM SPSS Modeler has been very advantageous. 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.
Market Planning and Bundling Department
VTR GlobalCom

The results

VTR GlobalCom, owned by Liberty Global, Inc. and national company Cristalerías Chile, provides Chileans with phone, cable television, and broadband Internet services. It has the country's largest number of cable subscribers, the second most phone customers, and was Chile's first broadband Internet Service Provider. The company has 2,324 employees and generates $230 million in annual revenue.

With 600,000 customers who purchase more than one million different 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 programmes. After considering several statistical analysis packages, the Market Planning and Bundling Department purchased IBM SPSS Statistics Base, a statistical and data management software package, and IBM SPSS Modeler, a data mining workbench from SPSS Inc.
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"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 says." IBM SPSS Statistics Base and IBM SPSS Modeler were the software packages that best fitted our needs."

The ability to perform market research was improved

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

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

Retention increased by 13 percent

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

"With IBM SPSS Modeler, we're able to predict quickly 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 continues. Using IBM SPSS 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.

In one instance, by offering discounts on digital cameras, VTR not only boosted customers’ satisfaction, but also motivated a number of them to upgrade to the company's broadband Internet service – so that they could access downloaded photographs.

Just as important as identifying customers to retain was identifying which customers were not worth keeping. By using IBM SPSS Modeler, the Market Planning and Bundling Department were able to identify a segment of impulse buyers who 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 programmes improved VTR's retention rate by 13 percent.

"Choosing IBM SPSS Statistics Base and IBM SPSS Modeler has been very advantageous," the Market Planning and Bundling Department's representative concludes. "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."

Interested in segmenting customers and improving satisfaction with SPSS Inc. analytics? Download the VTR GlobalCom PDF here.

*IBM SPSS Statistics Base, formerly called SPSS® Statistics Base, and IBM SPSS Modeler, formerly called Clementine®, are part of SPSS Inc.’s Predictive Analytics Software portfolio.

Customer Success Stories