OCC cost reduction analytics program

Context

A consumer wireless carrier needed to reduce Other Credits & Charges (OCC) — credits issued to customers that directly reduced revenue. The program was unfavorable in Q1 with no structured data-driven approach to diagnosis or intervention. Annual OCC spend was approximately $300M.

The problem

No automated outlier detection, no systematic field engagement cadence, and no finance outlook methodology. Performance management was reactive and manual.

Methodology

Outlier detection

• Built outlier detection methodology identifying rep-level OCC behavior vs. expected distributions, segmented by title, region, and call type
• Used statistical distributions to set fair, differentiated performance thresholds across a wide-ranging population
• Automated detection via Python scripts; daily flagging of reps crossing thresholds
• Created automated email alerts to supervisors delivering rep-specific OCC data directly to field managers — eliminating manual lookup and accelerating coaching response time

Cohort & journey analysis

• Redesigned cohort methodology to leverage new data from OCC Modernization
• Built subjourneys to trace customer OCC events back to upstream root causes (system issues, process gaps, behavioral patterns)
• Separated controllable vs. uncontrollable OCC spend; focused field intervention on controllable only
• Developed end-to-end automated KPI analysis: scheduled EDW pulls → organize → analyze → email to stakeholders

Finance modeling

• Created top-down OCC budget methodology: forecasted OCCs based on revenue drivers while accounting for planned pressures and savings
• Built OCC Incentive Pilot model:
  • Constructed supervisor performance distributions
  • Applied standard deviations to create equitable tiers
  • Ran 3-scenario cost-benefit analysis across 4 supervisor tiers
  • Designed pay-for-performance incentive structure
• Maintained quarterly finance outlooks with rolling pressure / savings tracking

Performance management cadence

• Launched bi-weekly field partner calls: reporting, coaching, accountability
• Built and distributed holistic performance packages to all stakeholders on a defined schedule

Stack

Python, SQL / Teradata EDW, Excel (financial modeling), automated email distribution (Python).

Impact

• $35.78M favorable to budget; $14.97M savings YoY
• User Level Controls: $2.6M/month cost savings
• Supervisor workload reduced 33%
• Outlier OCC/contact reduced 15%; 65% rep graduation rate
• Turned program from unfavorable in Q1 to $28M+ favorable for full year
• Manager: “proactively seeks opportunity… able to provide a custom solution based on the needs of the business”