Pinergy (www.pinergy.ie) helps its customers to understand and reduce their energy consumption, waste and energy cost through its smart technologies and sustainable energy solutions.

Challenge


Pinergy wanted to use data analysis to increase the average lifetime value (LTV) of its customer base. The smart metering company had not consolidated its customer data to generate valuable customer insights and improve profitability.


Solution


Pinergy chose Conjura to create a single customer view, integrating data from 8 different customer data sources. The Conjura Solutions team performed the subsequent analytics to help identify specific actions to increase LTV.


Results


Pinergy were able to increase the average LTV per customer by 30%, based on Conjura’s ability to isolate detailed customer segments who were likely to have a low / high LTV.


Creating a single view of the customer

Like many B2C companies, Pinergy has rapidly expanding data volume in different silos, making it costly, difficult and time consuming to get a single view of all customer data. From demographic data to website clicks, ad impressions and payment habits, it was technically possible a very detailed picture of each Pinergy customer.

Conjura’s customer analytics platform was used to integrate Pinergy’s data sources, so that all data points related to each customer could be referenced from a single location, in a single API call. This process required comprehensive data cleaning, re-formatting and de-duplicating, before any data was saved on the platform.

Once a single-view of the customer had been achieved, Conjura’s Solutions team were ready to analyse the data and find levers to increase Lifetime Value.

Finding the causes and remedies of low lifetime value

To assess the opportunities for increasing LTV, Conjura began by calculating the profitability per customer, using machine learning to analyse over 40 different data points to identify customer profiles with the highest LTV, and the lowest LTV.

Low LTV customers were prioritised because they often left the service, before Pinergy could re-coup its costs on acquiring these customers. If a low LTV could be identified before sign up, Pinergy’s average Lifetime Value and profitability would substantially increase.

On the flip-side, High LTV customers were analysed so that a similar audience could be targeted with marketing campaigns. In addition, the behaviour of High LTV customers were analysed, (e.g. what features did they use, what price plan did they have) to see if certain behaviours could be induced in other customer profiles so as to reduce churn.

A great result, but the work doesn’t stop

Pinergy’s use of analytics resulted in a 30% increase in average LTV, which had a multi-million euro impact on top-line revenue.

By encouraging the adoption of certain behaviours and features (e.g. automated top-ups), Pinergy were able to substantially reduce churn among its existing customer base. What’s more, re-directing marketing spend to more profitable channels and geographic areas promises to enhance the quality of the customer base and further increase Lifetime Value.

However, the market never stops changing and the Conjura Platform continues to collect and analyse data, periodically feeding new insights to Pinergy to help ensure that the company targets profitable customers and maximises their sales and marketing resources.

“Conjura are extremely professional, they live and breath data and their solution is incredibly thorough. The Conjura platform is able to answer questions we simply don’t have the time or expertise to tackle ourselves.” - Jeff Ward, CFO, Pinergy

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