Using Churn Management

This chapter provides overviews of churn management and the churn management process flow, and discusses maintaining churn management.

Understanding Churn Management

In the communications industry, the competition among Communications Service Providers (CSPs) is fierce. The tendency for customers to switch from one competing service provider to another is called churn. Churn management identifies valuable customers in your company who are likely to churn and executes proactive as well as reactive actions to prevent them from churning.

In churn management, two customer metrics are tracked in the system: churn score and customer value.

Churn score results from the calculation of customer behavior performed by an external data warehouse and/or data mining application.
Customer value results from the analysis of customer value performed by an external application.

Through application messaging, these values are fed to the CRM system periodically from an analytics application such as PeopleSoft CRM Warehouse. The customer attributes track the Customer Value and the Churn Score. These values can be changed manually at any time, but they will be overwritten the next time that the information is refreshed.

Customer service representatives (CSRs) can see the customer's churn score in the 360–Degree View when they open a Customer record. The CRM system evaluates the customer’s churn score (in the Attribute page) against the pre-defined churn score set values and displays the corresponding churn image under the Profile section. In this section, the CSR can click the Churn Actions Image to view possible actions (a display of scripts associated to the churn score set the customer belongs to) that can be taken to retain the customer.

PeopleSoft CRM provides churn action history as a reference to help the CSR decide whether an action should be taken, or which action to take. The CSR can look at churn history to find out what actions (scripts) have been completed for the customer (useful if the CSR wants to avoid repeating certain actions) and their results. Churn action history also displays customer value, which serves as a good indicator to help the CSR to focus the retention effort to those customers that are valuable. By looking at the customer value, the CSR can prioritize and choose to take churn actions for a very valuable customer over a less valuable customer, even though they might have the same churn propensity.

Understanding the Churn Management Process Flow

The business process flow for churn management can be divided into two parts: Updating Customer records in PeopleSoft CRM and using churn actions in the 360-Degree View. The first part of the flow is the integration between an external analytics system and PeopleSoft CRM, where churn score and customer value are sent to the CRM system to update consumer records. The second part of the flow starts when customer interaction takes place in the 360-Degree view. Upon identifying the customer, the churn score is evaluated to determine how satisfied or dissatisfied the customer is and then display appropriate image on 360–Degree view.

The following diagrams illustrate the business process flow for churn management in two parts:

Updating consumer records in PeopleSoft CRM.
Using churn actions in the 360-Degree View.

Update Customer Records

The first part of the flow is the integration between an external analytics system and PeopleSoft CRM, where churn score and customer value are sent to the CRM system to update customer records.

Use of Churn Management in the 360-Degree View

The second part of the flow starts when customer interaction takes place in the 360-Degree view.

Maintaining Churn Management

This section discuss how to:

Define churn scores.
Define churn rules.
Set up churn rule sets.
Define scripts with script type Churn.
View churn scripts and history.

Pages Used to Manage Churn

Page Name	Object Name	Navigation	Usage
Churn Score Setup	RBT_CHURN_SETUP_PG	Set Up CRM, Product Related, Communications, Churn Score Setup, Churn Score Setup	Use this page to associate churn scores (in range) with churn images.
Rule	RC_RULE_PNL	Set Up CRM, Common Definitions, Process Automation, Rule	Use this page to create additional churn actions to trigger active analytics for the RBT_DISP_SCRIPTS component.
Rule Set	RC_RULESET_PG	Set Up CRM, Common Definitions, Process Automation, Rule Set	Use this page to associate scripts to action sets in the churn active analytics workflow. Depending on the customer's churn score, different sets of scripts will be displayed in the Churn Actions link as possible actions to take against churn.
Script	RC_BS_MAIN	Set Up CRM, Common Definitions, Process Automation, Script, Script	Use this page to define additional scripts to be executed for churn events.
Churn Actions	RBT_DISP_SCRIPT_PG	Customer Accounts, Account. On the 360-degree view, click the Churn Actions Details button.	Use this page to view the churn history and possible actions CSR can take against churn. this page is only accessible through the 360 - Degree View.

Defining Churn Scores

Access the Churn Score Setup page.

SetID

Display the SetID of the churn.

Minimum Score

Enter the minimum score of the churn rule.

Maximum Score

Enter the maximum score of the churn rule.

Score Icon

Click to select the icon that will be displayed in Interaction Manager when the customer churn score falls in this range.

Description

Enter a description of the associated churn event.

Defining Churn Rules

See Working with Active Analytics Framework.

Setting up Policies

See Working with Active Analytics Framework.

Defining Scripts

Access the Script page.

PeopleSoft CRM comes with three script templates for churn management, $50 Service Credit, Wireless Plan Picker and Customer Satisfaction. Access the Script page if you want to create additional scripts to be associated with events.

Be sure to select Churn as the Script Type in order for the script to be available when you set up churn events.

Viewing Churn Actions and History

Access the Execute Script page.

Scripts

The Scripts section displays a list of possible Churn scripts that the CSR can use to retain customers. Churn actions differ based on Churn Score.

Click to execute the script.

Script History

The Script History section displays a list of churn actions that were taken in the past and their results. The results are displayed based on the configuration setup to display the history of actions. The configuration RBTPASTACTIONS is defined in the Communications Set Up component.

Action	Indicate the name of the action that was taken.
Churn Score	Indicate consumer’s churn score at the time the action was taken.
Customer Value	Indicate consumer’s value at the time the action was taken.

SetID	Display the SetID of the churn.
Minimum Score	Enter the minimum score of the churn rule.
Maximum Score	Enter the maximum score of the churn rule.
Score Icon	Click to select the icon that will be displayed in Interaction Manager when the customer churn score falls in this range.
Description	Enter a description of the associated churn event.