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Delivering an AI-Enhanced solution for a leading media client

In the subscription media industry, lifetime customer value is a critical metric. Success is measured by finding the right balance between customer retention and minimizing the discounts that are sometimes required to keep subscribers.

For one of the largest media producers in the US, customer-service agents play a massive role in striking this balance. Capgemini and Pega understood the needs of this client, and through a custom-built next-best-offer algorithm, gave this producer a powerful tool to move its business forward.

Business need

  • Enhance customer value by maintaining customer-retention rates and minimizing the need to offer steep discounts
  • Maximize monthly expected revenue (MER) by enhancing customer-offer accuracy and reducing churn\
  • Drive efficiencies in call center and customer service through automation
  • Resolve under-staffing issues due to societal disruption

Solution

  • Delivery of a next-best-offer algorithm that analyzes customer data and selects the most relevant offer for each customer
  • Re-invention of the client’s call-center experience, automating actions based on customer-data context
  • Unification of disparate front- and back-end customer service systems that leverage adaptive models to provide call-center agents with the subscription offers that, according to modeling data, customers are most likely to accept
  • Expansion of Integrated Voice Response (IVR) Channel with Pega Marketing to multiple customer segments, allowing customers to receive their model determined retention offers without requiring a live agent

Results

  • The next-best-offer algorithm has enhanced customer value while reducing churn rates.
  • More customers than ever receive and accept retention offers while on the phone, diverting calls from needed to be handled by phone agents.
  • Call-center representatives are seeing fewer calls as the automated system deflects inefficient tasks and has them only focusing on critical customer issues, thus enhancing satisfaction and increasing loyalty.
  • More than 51,000 customers have been offered an algorithm-approved offer, of which 16,000 have accepted.
  • More than 2,000 customers accept offers through the IVR every day, and call-center agents can focus on only extremely high-priority issues.

Technology and services

  • Pega BPM
  • Pega Marketing
  • Custom next-best-offer algorithm
  • Integrated voice-response channel

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