Athene helps wireless firms reduce ?churn?

BOULDER — Eric Johnson founded Athene Software Inc. in 1997 on the idea that he could, well, predict the future.

He started out with 10 employees developing and pitching a software that could predict when a customer was about to jump ship to a competitor. The wireless provider industry took notice. Today, Johnson, president and chief executive, oversees 100 employees with operations in Boulder and London.

Athene manufactures software that statistically analyzes data from a client’s interaction with its customers. The software predicts which customers might be prone to leaving and which ones could be targets for a product upgrade.

Athene’s software is used primarily by wireless phone providers trying to prevent “churn,” a term that describes when customers hop companies to get better deals.

Johnson attributes Athene’s growth to the increase in wireless phone providers, which make up the bulk of his client list. Johnson said only two wireless companies served Denver before 1996, and now there are 10.

One of Athene’s products, APT Churn, predicts those customers most likely to cancel and recommends measures that can help to avoid the customer loss. Another product, APT Profitability, predicts which customers are most likely to respond to cross-sales and add-on services.

As more wireless providers join the fray, Johnson said people are switching providers more frequently now that ever before. “We hear our customers say, ?If I can just stop the flow of my customers leaving, I can beat my competitor.'”

Although other companies offer data-mining software or consulting, Johnson believes that Athene’s software sets the company apart from the competition.

Johnson hires “specialists in machine learning” to staff the company’s Advanced Technology Group. “It’s made up of PhDs who report to the advisory board,” Johnson said. “On that board, we have the top five names in the world of machine learning.”

In addition to wireless providers, Athene’s clients include providers of Internet access, cable and satellite television, and local- and long-distance telephone service. Some of the providers offer a combination of communication services. Johnson would not disclose who is client’s are.

Johnson also declined to disclose revenues for the privately held company, but said Athene’s growing pains were eased with $15 million in financing in October 1999. Investors included Sema Telecom, TeleSoft Partners, MKS Ventures, Crown Venture Funds and Greenwood Gultch Ventures.

Sema Telecom, a system integrator with offices in Atlanta and Houston, offers Athene software for sale to its customers, Johnson said.

The company also markets itself on its Web site, www.athenesoft.com, through a direct sales force, and through a few other partners.

If one or two companies end up dominating the wireless market, Johnson isn’t worried. “It would certainly make the sales process easier,” he said. “Keeping the customer happy would still be important. Some people would just discontinue their service if the service is not worth the cost.” Even if the wireless industry became a monopoly, keeping customers buying would be important,” Johnson said.

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