Background
A leading B2B information services provider had struggled to improve net revenue retention for its subscription-based offering and sought to leverage advanced data analytics and AI to change its fortunes. To make it happen, the client partnered with L.E.K. Consulting’s AI solutions team to identify key markers of cross-sell and upsell opportunity, find reliable identifiers of customer churn risk, and use those insights to transform the account team’s approach to sales and client service.
Approach
We initiated the project by connecting a wide range of internal and external data sources and then conducting regression-based testing to identify patterns in product cross-sells, upsells and customer churn. We then performed an in-depth data interrogation and modeling exercise, evaluating 12 different AI/machine learning (ML) models to identify the best-performing option. Collaborating with the client, we explored the benefits and tradeoffs of each model, ultimately recommending a single superior solution.
We provided technical advisory and project management support to the client’s IT and sales teams during the pilot application development, including through a period of live user testing with the client’s top sales executives, targeting existing accounts where cross-sell and upsell opportunities were recommended by the AI solution. Taking feedback from the user group, our team iterated on the AI model, and overall solution design, to optimize performance and usability, culminating in a full-scale rollout across the client’s sales organization.
Results
L.E.K. brought a new AI-based solution to the client, guiding the end-to-end process of design, pilot, and scale. As a result, the client’s sales team is now armed with a valuable capability that provides new insight daily on customer opportunities and risks, as well as “best action” recommendations that the team can take to drive higher net revenue retention.
L.E.K. Consulting is a registered trademark of L.E.K. Consulting LLC. All other products and brands mentioned in this document are properties of their respective owners. © 2024 L.E.K. Consulting LLC
10282024101053