Calor Gas (UK) Case Study:

Challenge

- Experian have worked closely with Calor for the past 13 years helping with marketing, analysis and planning activities.
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Calor wished to answer such specific questions as:
 
- Who within the DCH customer base is most likely to defect?
- How does a customer’s likelihood to defect interact with their long term value?
- How can they treat certain segments differently to others according to both loyalty and value?
- How can they communicate with certain customer segments differently to others in order to ensure the most appropriate message and creative is used?

Solution

- First Experian enabled Calor to gain a much wider understanding of their customers through data enhancement and uni-variate profiling.
- Following this analysis a defection model was built to predict the likelihood of each customer to defect.
- This was cross-tabulated with measures of existing customer value to create a strategic segmentation framework.
  From this framework appropriate strategies were applied based on:
 
- Average and total value of each segment
- Revenue loss projections
- Number of customers in each segment
- Probability of defection
- Demographic and Socio-cultural characteristics

Results

- Calor have been able to structure their customer retention and management strategy around this framework allowing more efficient allocation of appropriate resources in retention and cross-selling activity.
- Results show that the strategy grid is accurately predicting those customers who are most likely to leave.
- This approach is also being rolled out to the customer acquisition programme – targeting prospects that are most likely to not defect and be of high value.
- In addition strategic segments are to be used across other business areas within Calor including BBQ and patio products and portable heating.
 
       
 

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