Submitter
Christine McKay, Director, Marketing Analytics
Company
Clarivate Analytics
Industry
Information
Business Challenge
Clarivate Analytics’ business is primarily supported through subscription revenue. Clarivate’s sales reps interact with their customers on a regular basis, but didn’t have an efficient way to determine the risk of attrition of these customers.
Analytics Solution
Clarivate Analytics determined it should use SAP’s Business Objects program, and a single report to identify a retention risk score was developed by leveraging spending information, usage trends and other behavioral data. Data sources come from Clarivate’s CRM, entitlements and various usage systems and are mastered against a unique account ID number. The mastering process was extensive, as all parent/children/sibling accounts also needed to be included and different products use different Adobe usage systems. Partnering with the Product and Sales teams enabled a scoring algorithm to be created. While the score is a numerical value, the end result for the user is a color in the RAG rating system (Red for high risk, Amber for neutral risk and Green for low risk). However, sales reps who would most benefit from this are not SAP Business Objects users; therefore, the report is integrated into Salesforce.com. This enables a sales rep (or any user) to click on any account record to call up the report and identify their risk score. One tab of this multi-tab report is dedicated to explaining how the score is calculated for complete transparency.
Impact
This analytics method takes the guesswork out of how Clarivate Analytics can best serve its customers and improve its revenue stream. Clarivate has not done a case study on the exact impact this has had; however, its retention rate (customers who renew their subscription) has increased significantly.