Nextel Communications

Work: Direct Mail Campaigns

Challenge: Loyal customers are a precious commodity in the telecommunications industry and Nextel subscribers are no exception. Early warning signs including a high number of calls to Customer Care indicated that dissatisfied Nextel customers were “slipping through the cracks” and deactivating service.

Solution: Print collateral targeted at-risk customers with a carefully crafted message designed to ensure total satisfaction. Via monthly letters and direct mail, selected subscribers were directed to an online survey to pinpoint unresolved issues. Nextel was then able to take the actions necessary to “save” these customers.

Results: One of Nextel’s most successful customer-retention efforts to date, this program has consistently hit response rates of 8% or higher since its inception in May 2001.

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Work: Employee Incentive Programs

Challenge: Reducing churn — the rate at which customers deactivate service — has been a driving force behind Nextel marketing initiatives. While the company’s customer-retention programs made an impact, lack of employee awareness on this topic limited results.

Solution: Internal quarterly churn-reduction campaigns helped communicate this company-wide concern at an employee level while reinforcing and rewarding employee behavior to lower churn rates.

Engaging creative kept interest levels high and motivated employees to reach campaign goals. Every 60-day campaign featured a distinct theme, logo, newsletters and campaign website.

Results: Since the first campaign launched in May 2001, these internal initiatives have consistently lowered churn rates quarter after quarter, saving Nextel millions of dollars in the process. In August 2003, Nextel hit historically low churn scores — shattering industry as well as company records.

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