Companion sales and upselling for monthly subscription contrancts
Our customer, a leading European Internet company, carried out an initiative to increase customer value. niologic provided the analyses for companion sales and up-sell potential. Thus, value added services and bundles could be introduced in a targeted manner.
Challenge
Our customer wanted to increase customer value through upselling (higher value products) and the sale of additional services (bundles/associated sales or copromotions). The monthly Recurring Revenue (MRR) of the customer was to be increased sustainably.
Procedure
niologic created association rules (Association Learning, Similiarities) based on a previously created product hierarchy or product portfolio. This made it possible to identify similar customer groups and predict which customers are open for upselling or joint sales. Corresponding reports and combination rules were then made available to product management as reports and dashboards. New product combinations and offers were created from these association rules.
Result and customer value
From now on, our customer was able to track the progress of marketing campaigns through the reports on a daily basis. Due to association rules, embedded in daily reporting, product management was able to analyze the portfolio and perform portfolio optimization without recourse to data scientists.
On behalf of the portfolio management, the multi-brand strategy was strengthened as the customer could transfer and forecast successful bundles of one brand to other brands based on the product hierarchy.
