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Case Study

OnStar removed effort, defection, and cost from every subscriber journey

  • Drove 1.5 percent higher subscriber retention in first six weeks

  • Projected $33 million annual revenue gain

  • Updates regularly (not quarterly or semi-annually)

"We are outsourcing IT to the business."

The Business Issue

OnStar needed a next-generation platform to serve its seven million subscribers. Legacy technology was expensive to maintain and difficult to use – leading to slow advisor response times. Meanwhile, the advent of 4G LTE within new vehicles posed a challenge to support the capabilities, products, and services that came with this new technology. OnStar took this opportunity to move away from a single-channel, contact center model to a stand-alone decisioning engine that would drive capabilities into all channels that subscribers used to interact with the company.

The Solution

OnStar selected Pega Customer Decision Hub™ to plan for the future with visualization and simulation, while handling today’s challenges using next best actions, predictive and adaptive analytics, and decision arbitration. Now, when a subscriber contacts OnStar, the Pega Customer Decision Hub uses rules, predictive intelligence, and machine learning to drive the next best action – regardless of channel – for consistent and relevant actions for sales, cross-selling, and retention.

The Results

Recently, OnStar reviewed key subscriber value management metrics and found a 1.5 percent increase in subscriber retention in the first six weeks and projected a $33 million per year gain from improved conversion rates, profit margins, extensions of customer lifecycle on new conversions, and reduced margin dilution. In addition to these gains, the OnStar team can now make changes on the fly, without having to tie them to a major release. As a result, subscribers see improvements and new features faster, leading to increased satisfaction.

Related Resources

  • Read about how other manufacturing customers are using Pega to drive real results.

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Tags

  • Industry: Manufacturing & High Technology
  • Product Area: Platform
  • Challenge: Customer Service
  • Challenge: Customer Retention
  • Challenge: Legacy System Innovation
  • Challenge: Digital Process Automation