Organization Optimization – Attrition Analysis & Risk Mitigation for IBM Systems Clients
Client:
IBM
Project Date:
September 2018
Objectives:
Analyze IBM Systems' client attrition rates, identify clients at potential risk of leaving, and develop proactive strategies to increase retention and client satisfaction.
Situation & Tasks:
With growing competition in the cloud computing space, IBM Systems observed an unsettling difficulty in re-signing it’s existing clients to its recently launched z14 mainframe platform. The priority was to understand the reasons behind this trend, identify high-risk clients, and formulate an actionable plan to reverse attrition rates bolster client satisfaction.
Actions:
Data Deep Dive: Undertook a comprehensive analysis of past and present client data to spot patterns, trends, and commonalities among clients who had departed or were deemed to be at risk.
Feedback Collection: Launched client surveys and interviews targeting both current and former clients as well as front-line sales representatives to understand their grievances, expectations, and reasons for discontinuation.
Risk Assessment: Developed a data-driven risk-assessment model to identify the attrition risk of all IBM system’s clients based on most recent purchase, software usage & usage growth rates, price sensitivity, contract complexity, sales conversation frequency, interview responses, and seller sentiment to identify high, medium, and low risk client groups.
Tailored Solutions: For high-risk clients, designed and recommended engagement strategies based on industry, platform usage, and point-of-concern, including dedicated support teams, tailored offers, regular customer success check-ins, and technical product team projects to address specific concerns as they came up.
Monitoring & Iteration: Set up continuous monitoring mechanisms to track client satisfaction levels and fine-tune the implemented strategies based on real-time NPS feedback and client regular feedback surveys
Results:
Delivered the analysis and recommendations to IBM executives. Upon strategic decisions on which recommendations to implement, IBM Systems witnessed a significant reduction in attrition rate during it’s z15 and z16 launches in 2019 and 2022 respectively as well as improved customer satisfaction rates during platform sales contract renewal processes.
