Customer Intelligence Officer
Endesa reduces churn by 50 percent
To get a jump on the other players in Spain’s highly competitive energy market, Endesa – the country’s leading electricity dealer and second-largest gas vendor – uses SAS® Customer Intelligence to segment and better understand its customer base, streamline campaign management, build customer loyalty and acquire new customers. As a result, the company reduced churn by 50 percent in two years.
"Until recently, our main challenge was to move from a regulated to a deregulated business environment," explains Luis Miguel Muruzabal, Endesa's Deputy Director for the Mass Market. "Now it's not only about engaging customers, but also extracting more and more value from them, by offering new services that keep them satisfied. SAS is integral to our strategic segmentation, which has allowed us to improve our customer knowledge, streamline our campaign management and increase new customer engagement."
We chose SAS for its great analytical power and its ability to handle large data volumes. SAS provided everything we needed – it's an indispensable tool for our work.
Better customer segmentation
With SAS, Endesa now has a strategic approach to customer segmentation, which delivers the customer insight to help define new products, formulate new customer acquisition strategies, and reduce attrition. Examples of value-driven segmentation include environmental sensitivity, geographic location, customer lifetime value, and propensity to churn.
"The SAS solution works very well, manages a large amount of customer data and allows us to try new marketing concepts," adds Customer Intelligence Officer Tomás Cruz.
In the past, Endesa could only implement four or five marketing campaigns per year. Now, it can implement that much activity each week. The time it takes to report campaign results fell from seven days to just one, which allowed Endesa to make changes to electronic campaigns midstream to improve effectiveness.
"In past years, we have achieved exceptional results thanks to improvements in campaign productivity, including an increase of more than five times the amount of gas sales in Andalucía and double the sales in Cataluña,"Muruzabal says. "It also costs us less to acquire new customers."
SAS Customer Intelligence also helps Endesa with its cross-selling activities, such as bundling gas sales with maintenance services. "SAS helps us to know our customers better and determine their probability of being interested in purchasing other products or services related to an existing contract," he explains.
Using SAS, Endesa has experienced a 70 percent reduction in the time required to design a new campaign and generate a target customer list with a score for each contact. Marketing managers can now design a new campaign in hours instead of weeks.
With millions of commercial and residential customers, Endesa collects a significant amount of data, which the energy company has been able to manage much better using SAS.
"We chose SAS for its great analytical power and its ability to handle large data volumes," says Cruz. "SAS provided everything we needed – it's an indispensable tool for our work. Without it, our ability to develop campaigns and target the right customers would noticeably decrease – our users would be almost paralyzed without the SAS solution."
Acquire, retain customers in a competitive, deregulated energy market through more efficient, effective campaign management and better understanding customers
Shortened design time for new campaigns from weeks to hours, reduced customer churn by 50%, significantly increased gas sales, reduced customer acquisition costs and improved cross-selling success