Energy Efficiency Economics & Markets

Market Segmentation Analysis and Customer Churn Modelling

Client: Australian Energy Utility

EnergyConsult staff?analysed existing market research and customer value data to develop a multi-dimensional market segmentation framework for the utility's residential market. The market was segmented according to the demographic, financial contribution and attitudes of the customer base. A model of customer churn in the competitive market was then developed, which incorporated the findings of this analysis and information on the distribution of customer consumption, to estimate the impact of customer churn on customer numbers, aggregate consumption, revenue and margins under a variety of scenarios. The model was used to drive business forecasts and strategic planning.