
Reducing Customer Churn with SAP Predictive Analytics
A/V/E GmbH deployed SAP Predictive Analytics on HANA and BW to predict contract termination risk for utility clients and enable targeted retention actions.
A/V/E GmbH serves over 45 German utility providers and faced rising customer churn after energy market deregulation. The company implemented the gisa.Customer Insight application, built on SAP Predictive Analytics, SAP HANA, and SAP Business Warehouse. The solution converts unstructured customer complaint data into structured variables, applies logistic regression, and generates individual churn probability scores. These scores allow energy suppliers to design segment-specific loyalty programs and reduce contract terminations.
Logistic regression on complaint severity and volume predicts termination risk with 80% accuracy
Individual customer churn scores generated in under 3 seconds
Unstructured text converted to structured variables for modeling
Targeted retention campaigns based on probability rankings
Near-real-time data modeling supports rapid loyalty measure design