Here's a great example of the tangible benefits companies can see by applying analytics to their business. XO Communications has reduced customer churn rates by nearly 50%, largely through the use of IBM's predictive analytics software.
According to independent analyst firm Nucleus Research, XO recorded an 376 percent ROI in just 5 months, an average annual benefit of $3,819,200 million. (You can download the full case study here.)
From the press release:
LAS VEGAS, N.V. - 25 Oct 2011: IBM (NYSE: IBM) today announced that XO Communications, a leading nationwide provider of advanced broadband communications services and solutions, has reduced its customer churn rates by nearly 50 percent, largely through the use of IBM predictive analytics software. The software has helped save XO millions of dollars by uncovering deeper insights into customer behaviors, spotting trends, identifying those likely to defect, allowing proactive actions to keep their most valuable customers.
Press Release: IBM Business Analytics Helps Improve Customer Retention by Nearly 50 Percent at XO Communications
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