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Cancellations and Retention

Retentions/Cancellations Process

Customer Retention Overview


Retention happens when a customer intends to cancel a service.

This is the final opportunity to discover the true meaning of why this customer feels unsatisfied with what we are offering and perhaps give us a final opportunity to resolve their issues and turn around any wrong doings we may have done.  This will probably be the last opportunity we have with the customer with a proper two way flow of information (esp. when disputes are involved).

 

Below are the common cancellation reasons.

  • Customer is moving/already moved out with a new provider
  • Customer found a better offer (cheaper plans/more benefits/etc.)
  • Customer acquired a new type of service/no longer need the current service
  • Customer had a bad service experience/experiencing service difficulties

Retention opportunity may not be always available in every cancellation intent as it is dependent on the cancellation reason (e.g. retention opportunity is not present if the reason for cancelling the service is moving out of the country). However, majority of cancelling customers maybe saved, if proper retention action is performed. Delivering proper retention action may include the offers presented to the customer and the demonstration of quality customer service experience to resell the value of the SpinTel service.

What is the goal of SpinTel's Retention Program?


SpinTel Retention aims to reduce the number of valuable customers leaving SpinTel.

It is far more cost effective to retain an existing customer than to get a new one.

Remember - SpinTel premise for existence is Customer Delight.

Who are the customers we need to retain?


We need to retain customers who fall under Retention Categories A, B, & C as these are the customers that give us revenue. However, it does not mean that we no longer put in an effort to retain customers who fall under other categories. We should still try to retain them, but no credit or discounts should be given to them.

To check for the customer's retention category, please see the screenshot below.

  • The information in the screen capture above means the customer is a category C.3 and a $15 credit is available for retention purposes if the customer re-contracts for another 12 months, and $10 if the customer does not want to re-contract
  • The credit that shows in the retention category field is the credit that can be offered to the customer as a service discount, which can be split over number of months
  • Agents will manage how to present the retention offer to the customer if the credit that shows in the retention category field is below $200 - the retention category field should show the customer's category and the corresponding credits
  • If the retention category field shows HNC see TL - this means that the agent needs to consult a team lead to ensure proper retention effort is done as this is a high net worth customer (credit should range from $201 - $500) 

  • If the retention category field shows HNC - Mgr - this means that it requires the intervention of a manager to ensure the customer is retained (credit should range from $500 and up)

Retention Call with Existing Complaint or TIO


Customers requesting to cancel with existing complaint ticket or TIO must be dealt with accordingly by the Strike Team. Coordination with the Strike team is necessary as the call may just need to be passed on to them.

On the other hand, agents should follow the normal dispute handling process if the canceling customer has a dispute but no existing complaint ticket or TIO.

There is no point issuing a goodwill credit or adjustment to a cancelling customer as this cost could no longer be recovered. However, adjustments due to our errors must still be applied to avoid attracting other complaints that may lead to TIO.

If the customer threatens to go TIO because their adjustment request is not clearly granted (provided it is purely customer-based), seek advise from the Strike Team or team leads.

Absolute vs Conditional Cancellation Intent


Absolute Cancellation happens when the customer has already made up the final decision to cancel the service.

Conditional Cancellation happens when the customer will cancel IF no proper action is done to resolve the issue (e.g. billing issues or fixing a service fault).

The above definitions simply tell us that not all the times when the customer utter the word ‘Cancel,’ they really mean to cancel. They sometimes use the word as a threat to push us to work on a speedy resolution of their current issue. If this the nature of the call, the retention process does not apply, as technically, this is not a retention call. However, proper issue handling must be demonstrated to ensure the Conditional Cancellation request will not turn into an Absolute Cancellation request.

Retention Flow


Knowing the Cancellation Reason & Determining Retention Opportunity

It is extremely important to know the reason why customer is cancelling. This is the basis whether retention effort is necessary or not.
It is also important to understand the underlying issues why the cancellation reason came about.

Sample scenario:

Agent: If you don’t mind, may I know the reason why you are cancelling your service?

Customer: Yes. I am with another provider now.

If you purely base your analysis on the conversation, you would conclude that the reason the customer is cancelling is because the customer now have a new provider. However, if you probe further and analyse, you might find out that the actual reason is different. It could be that the customer switched provider due to our deals are no longer competitive, or there could be a dispute by the customer that we did not properly handle, which led him to change provider.

After probing the underlying issues behind the main cancellation reason, discuss this with the customer, apologise for any inconveniences we may have caused the customer, and resell the value of SpinTel and its services.

We make the customer want SpinTel again by highlighting our edge over other providers!

 

Reselling the Value of SpinTel

Reselling the value of SpinTel simply means reselling the benefits and advantages of SpinTel as a provider and the product it offers. Below are the general benefits customer would get when they connect a service with SpinTel.

  • SpinTel has been operating in Australia since 1996. This means customers are dealing with a company with proven reputation.
  • SpinTel prides its awards for business performance. This means customers are dealing with an Award-Winning company. Awards include Money Magazine’s Best Broadband Bundle Plans in 2014-2015 & 2012-2013, BRW’s Fast 100 growing company, Money Magazine’s Best Overall Value, etc.
  • SpinTel provides technical support and customer service assistance 7 days a week, which means a much more efficient service.
  • SpinTel’s operation is all across Australia, making it available wherever the customer may be.
  • SpinTel is a mid-sized operation, which means it is capable of offering a complete range of personalised products and services

 

Reselling the Value of SpinTel Services

Reselling the value of the service is highlighting the advantages , features, and benefits of the service that the customer have. This would mean that each type of service to be retained might require different approaches. Sample known features and benefits of SpinTel services are listed below.

  • Bumping Option - ensures that the customer can continue using the service when the quota is reached by auto upgrading the plan to the next available plan. Customers will only incur minimal charges while getting the full benefit of the new plan.
  • Competitive phone rates on both mobile and home phone.
  • Bundle Option - providing convenience to customers since they will have one provider for both the home phone and ADSL, even more services.
  • Relocation Option – ensuring that customer is able to continue taking advantage of the SpinTel services when they move to a different address.
  • Plan Flexibility – providing option for customers to be able to personalise their plan/service.
  • There are a lot of advantages and benefits in getting SpinTel service. All that needs to be done is to target which one applies the most to the situation of the customer with the fixed goal to RETAIN them.

A benefit comparison between competitors services and SpinTel services may also be very useful.

 

Performing a Health Check

Health check is very important when retaining a customer.

  • We need to check if the customer has the best plan that we have available.
  • We need to make sure the customer is maximising the benefit of their plan or service.
  • We need to check if the customer is paying for a service that matches his/her actual needs.

Important things to check when performing a health check:

  1. Look at the start date of the account - if the account starter more than 6 months ago, more likely the customer does not have the latest plans we offer. See screenshot below:

      2. Check charges to determine the customer's plan and the corresponding charge.

    3. Check plan inclusions by following this path Service ID >.Plan Name.

   4. Check service usage through MyAccount.

Retention Offer Positioning (How to use the available retention credit)


It is important that we know how to make the retention offer enticing to the customer. We also need to know how likely the customer will respond to our retention effort.

The credit available in the retention category field of the customer will be given in full. However, this must be offered in a form of a service discount to be split over number of months.

Benefit for SpinTel: it gives us the assurance that the customer would still be with us over this period. Thus, we would be able to regain the credit that we granted the customer.

Effect to the customer: it allows the customer to appreciate the value of the credit we are offering. For example the available credit for the customer is $100. It would not have much effect if we will offer it as one off credit. Customer will surely forget it in after the present invoice. However, if we split that amount over 10 months, customer would surely appreciate a $10 discount every month.

When giving the offer to the customer, reps must use the auxiliary verb ‘will’ rather than ‘can’ or ‘might’. The use of ‘will’ tells the customer that we are genuine with the offer and it would make them feel that they are being valued.

Retention Discount Calculator  has been created so that it would be easy for the agent to calculate the possible discount to be given to the customer. The agent just need to enter the credit value of the customer (obtained from the Retention Category), the plan rate, the desired % of discount, and the desired number of months to offer the discount.

Access this calculator here Retention Discount Calculator

As a guide, if the credit value of the customer is above $50, agent may split it over 3 months or more (if the credit is huge). However, if it is below $50, the agent may split it over 2 months only or apply it once off (note that the plan rate of the customer still matters so it may change the decision as to how many months the credit will be split over). The % of discount to be given to the customer should not be below 10% for it to be attractive.

However, in the end, the agent has the final say as to how many months the available credit would be split over depending on how attractive the offer would appear to the customer. The agent just needs to ensure that the discount presented is something that would make the customer feel valued rather than insulted.

It is very important to reiterate clearly to the customer that the discount given is on the plan rate, not on the total monthly invoice.

 

Sample Offer Scripts

Given: Retention Category A.3 - 12 mth $105, -NC $70; Plan Rate = $59.95

1.Offer a 30% discount on their service for 3 months – you can use a spiel such as: “Because we highly value you as a customer, I will give you a 30% discount in the next 4 months if you keep your service with us. And if you will enter into a new 12 months contract, I will increase the discount to 35% and extend it up to 5 months.”

2.  If the customer  insists on a free month – suggested spiel: “We highly value your business, so I will provide you a month free of service if you decide to stay. If you are willing to enter into a new 12 months contract, I will provide you a month free of service plus a 25% discount in the next 3 months.”

 

Note: Offers in the example are computed using the discount calculator

How to Apply the Discount



If the agent will apply a discount, a ticket should be created to Credits Team.


How to Categorise Retention Calls


Successfully retained customers must be categorised as Cancellation>Type of service>Reason of cancellation>Retained Service

 Unsuccessful retention must be categorised as Cancellation>Type of service>Reason of cancellation>Cancelled Service

Retention calls validation will be solely based on the call categorisation. It means the retention will not count if the representative incorrectly categorised saved customers.

Retention Incentives


Every saved customer is Php250.00! 

Every retained customer must not cancel in the next 30 days from the save date.

Payout of the incentives will be done on the 5th of the following month to allow more time for the validation process.

 

Note: Management reserves the right to change the incentive scheme depending on what is more appropriate and efficient for the business.

GUIDES

This knowledgebase contains helpful guides which cover a wide range of topics.

CUSTOMER SERVICE

Call us on 1300 303 375 or log in to My Account and request a callback at a time that suits you.

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All times are Australian Eastern Daylight Time (AEDT)

NETWORK STATUS

Customers experiencing service difficulties should check our Network Status page for known issues before troubleshooting.

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