NICE Interaction Analytics

Churn Reduction Package

NICE Interaction Analytics Churn Reduction

Package is a powerful solution enabling contact
centers to: NICE Churn Reduction Package
Highlights
■■ Increase customer loyalty
■■ Reduce customer churn ■■ Identifies customers at risk in near real-time
■■ Improve quality of service
■■ Exposes root cause for customer
dissatisfaction
■■ Automatically predicts churn risk
Reduce Churn by Improving Customer ■■ Integrates into transactional churn models
Satisfaction
■■ Allows personalization of retention
Companies constantly strive to increase customer offerings
satisfaction by optimizing quality of service. With
information being disseminated and received
at lightening speed on the Worldwide Web, in
professional forums, and blogs, the impact of both
positive and negative customer experiences can be
felt instantly.

For most consumers, customer satisfaction creates

more loyalty, increases the probability that they
will purchase additional products and services, and
reduces the chances of switching to a competitor.

A recent report about the impact of customer

experience on large enterprises revealed that a “large
retailer with the highest level of customer experience
can end up with nearly $30 million of additional
purchases and avoid losing $42 million of revenue
that would have moved to competitors — resulting
in $72 million of additional revenue.” Additionally,
the report stated “poor experiences can cost large
firms more than $180 million per year.” (Forrester
Research, The Business Impact of Customer
Experience, March 24, 2008).

Insight from Interactions TM

NICE Churn Reduction Business Package
The NICE Churn Reduction Package is a valuable solution
for contact centers to predict if a customer’s dissatisfaction
may lead to churn. The package helps understand the causes
of the dissatisfaction in near real-time to determine the
preemptive action needed to prevent the customer from
churning and potentially moving to a competitor.
Identifying Customers at Risk
The NICE Churn Reduction Package takes NICE’s Interaction
Analytics multi-dimensional approach to identify and
categorize calls which may indicate possibilities of future
churn. NICE’s multi-dimensional approach analyzes the
customer interaction using emotion detection, content
analysis by keywords and phrases, call flow analysis, and talk
pattern analysis. Potential indicators may be emotion level
that is heightened by frustration combined with specific
words or phrases such as the name of a competitor. When
the relevant indicators are detected, the call is categorized
and the system automatically alerts the relevant people
in the organization that this particular call is related to a
customer at high risk of leaving.
Proactive Churn Prevention
The NICE Churn Reduction package seamlessly integrates
with the organization’s CRM system for a more holistic
view of the situation. Based on a pre-defined threshold,
interactions receive a churn risk score, and, if needed, a
request is automatically opened by the retention team’s
CRM system and delivered directly to the person in the
organization who can take immediate action. The request
NICE Churn Reduction Package Contents
■■ Pre-defined categories
■■ Advanced lexicons
■■ Customer loyalty trend graphs
■■ Customers at risk alerts
■■ Real-time alerting for trend changes
contains information such as the danger score, a link to
the interaction, and a list of the words and phrases that
came up during the call which may indicate potential
churn. The automated process enables organizations
to predict and pro-actively handle customers at risk by
taking personalized preventive measures.
Integrate into the Retention Process
The NICE Churn Reduction Package performs automatic
root cause analysis in order to understand the
underlying issues that may lead to churn. Root cause
analysis is based on transcription and text mining for
providing detailed results which are integrated into
the organization’s retention process. For example, it is
possible to automatically generate a report listing all
competitors mentioned during the interactions as well
as specific comments that were made regarding specific
products or services. These reports are automatically
sent to the customer retention team allowing them to
study competitive offerings as well as create appealing
offerings to pro-actively prevent potential future
customers at risk. The information can then be used by
the marketing team as a valuable tool to create focused
customer loyalty-related activities.
NICE Interaction Analytics Comprehensive
Solution
NICE Interaction Analytics is a powerful business
solution that drives high performance and business
excellence in the contact center. The solution offers
companies the means to obtain multi-dimensional
business insight to improve operational efficiency,
increase customer loyalty and retention, and improve
marketing and sales effectiveness. Analyzing contact
center interaction data using NICE Interaction Analytics
empowers organizations to meet short-term objectives
such as improving First Call Resolution and reducing
Average Handle Time. Additionally, the solution
enables companies to achieve strategic goals such as
predicting customer churn, increasing customer loyalty
and satisfaction, and increasing marketing campaign
effectiveness.
Churn Reduction Case Study: Telecommunications Operator
Challenge:
In the ever more competitive telecom market the
telecommunications operator was looking to further
improve its competitiveness by developing a unique
customer retention model. They wanted to be able to
combine customer interaction data with CRM transaction
data to get a more complete and accurate understanding
of customer behavior. Additionally, they wanted to examine
the causes of customer churn in order to implement the
appropriate prevention methods.
The operator wanted to improve their retention capabilities
by establishing a predictive, near real-time response model
and perform root-cause analysis of customers who left
for the competition. Additionally, they sought to improve
quality monitoring processes by honing in on “good calls”
for best practices purposes, as well as calls that need
improvement for focused feedback to agents.
Solution:
To enable the operator to identify and predict which of
their customers were at risk of churning, and to better
understand what may drive customers to churn, they
implemented NICE’s multi-dimensional interaction
analytics solution. The solution implemented includes the
following capabilities: emotion detection, content analysis
by keywords and phrases, call flow analysis, and talk pattern
analysis. Moreover, it is integrated with their CRM, CTI and
Interaction
Analysis
“disappointed”
“wasting my time”
“frustrated”
“speak to manager”
“would not recommend”
Loyalty & Retention
Business Intelligence (BI) systems, and provides automated
call categorization, threshold definition, and alarms,
enabling them to focus on interactions that are critical to
the business.
Based on a pre-defined threshold, interactions receive a
churn risk score, and, if needed, a request is automatically
opened by the retention team’s CRM system integrated
with the NICE solution. This request, which is delivered
directly to the right person in the organization who can take
immediate action, includes information such as the danger
score, a link to the interaction, and a list of the words and
phrases that came up during the call which may indicate
potential churn (avoiding the need to listen to the full
interaction and saving critical time).
Benefit:
The telecommunications operator found that the NICE
model delivered prediction accuracy at 75%. In other words,
75% of the interactions which were recognized solely by
the NICE solution as indicating customers at risk of churn
were validated by the BI system and the company’s domain
experts. Furthermore, in many cases the NICE Interaction
Analytics-based model provided potential churn alerts much
earlier than other models. In fact, a 1% reduction in customer
churn is believed to have been translated into a 5% increase
on the bottom line.
Categorization Automated Root
Trends & Alerts Cause Analysis
 ABOUT NICE NICE Systems (NASDAQ: NICE) is the
leading provider of Insight from Interactions solutions
and value-added services, powered by the convergence
of advanced analytics of unstructured multimedia
content and transactional data – from telephony,
web, email, radio, video, and other data sources. NICE’s
solutions address the needs of the enterprise and
security markets, enabling organizations to operate
in an insightful and proactive manner, and take
immediate action to improve business and operational
performance and ensure safety and security. NICE has
over 24,000 customers in more than 135 countries,
including over 85 of the Fortune 100 companies. More
information is available at http://www.nice.com.

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DATE 07/2008 • P/N 406F0272-01 • CONTENTS OF THIS DOCUMENT ARE COPYRIGHT © 2008