Electric utilities, telephone service providers, cable operators and home alarm companies suffer from extremely high rates of customer churn. Churn is devastating to service providers’ income as it often takes years to recover customer acquisition and installation costs.
Kinfund, based in Ireland, has an elegant crowdsourcing solution to this vexatious problem. Kinfund enables utility, telephone and cable customers to direct up to 30% of their monthly invoices to the charities of their choice. Game theory would hold that people are reluctant to switch utility providers if doing so would halt revenues from flowing to their favorite causes. Thus, utilities can boost their retention rates and (depending on the governing tax laws) ratchet up their tax-deductible expenditures by passing on revenues to selected charities. At the same time, consumers support their causes without laying out additional funds.
Kinfund’s copyrighted software facilitates the routing of contributions from the utilities to the charities based on the preferences of the end customer. For these services, Kindfund charges a fee.
One strategy that Kinfund has for increasing its customer base is to enable current customers to invite their friends and family (their next of kin) to join Kinfund and support the charities for which they have affinities. This is accomplished with semantically-interlinked online communities.Churn Crusher,