EnergyCo is an Irish-based provider of energy efficiency solutions to consumers and businesses. Particularly well-known for its pre-paid electricity product, EnergyCo wanted to understand the effectiveness of its customer retention campaigns and what tactics could be used to extend the average tenure of a customer.
It sought Eagle Point’s help to review the performance of various retention campaigns, analyse its customer data, identify key customer groups and recommend specific actions to improve the lifetime value of each customer.
Eagle Point took customer data and matched this to Experian’s Mosaic household classification system to understand who EnergyCo’s customers are, where they live and their level of affluence, among other indicators.
We then analysed customer cohorts and tracked behavioural (e.g. churn) changes between different cohorts over time. We were able to direct EnergyCo’s sales efforts to the most profitable demographic customer segment in the most suitable geographies.
EnergyCo now has a greater understanding of the profitability of its different customer types and thus the acquisition cost that should be attributed to each of these customer types.
EnergyCo is now working to implement our recommendations.