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Greenchoice - Contract Extensions

Retaining customers by shortening the contract extension process

Retaining customers

Challenge

For an energy supplier like Greenchoice it is important that once you sign a customer, you retain them for as long as possible in order to generate the highest profit margin per customer. Greenchoice wanted to increase the rate of customers that extend their contract at a fixed tariff after it expired.

The A/B test was technically quite difficult to set up and It cost us some time to make it work, but eventually the result was worth it since we got a good indication of what the impact of the test is and how it can help us in retaining our customers.

Didy Bos

Senior Online Marketeer at Greenchoice

Shortening the funnel

Strategy

The contract extension funnel consisted of two pages, one to select a new contract and the second one to review your details and confirm the contract extension. Greenchoice wanted to shorten this and combine both pages into one. In order to validate the impact of this before implementation an A/B test was conducted.

Business Effect

Retaining customers by shortening the contact extension process.

Uplift in contract extensions

+3.70%

Significance (CTBC - Chance to Beat Control)

90%

The result of this A/B test showed that there was a 3.70% increase in contract extension for the variation where the process was conducted in a single page instead of two. Based on this result and thus the validation of the hypothesis, Greenchoice decided to go for implementation and shorten the contract extension funnel.