Customer Lifetime Value Engagement for a Broadband Services Provider Helps Achieve Higher Retention Rate

May 1, 2018

The client: Broadband services provider

Area of engagement: Customer lifetime value prediction

The global broadband services market has benefited from excellent cross-platform competition, with a comprehensive DSL infrastructure being complemented by extensive cable networks and a growing fiber presence in the last few years. Additionally, commercial considerations meant that broadband services were for some years restricted to a few urban areas, though more recently the sector has received considerable financial support from the government across the globe and are aimed at building fiber-based networks across the countries and promoting high-speed broadband services to end-users.

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The Business Challenge

The client, a global broadband services provider, wanted to efficiently spend their resources to acquire potential customers and retain the most profitable ones. Additionally, the client wanted to seek ways to make important business decisions in terms of sales, marketing, and new product development and offer reliable customer service and support to the end-users. Through a robust customer lifetime value prediction engagement, the client wanted to develop and maintain a long-term relationship with their most profitable customers.

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Customer Lifetime Value Prediction Benefits

With the help of Quantzig’s customer lifetime value prediction engagement, the broadband services provider sought ways to ascertain adequate marketing efforts to reduce churn rates and ensure right marketing investments towards the right clients. This helped them accomplish a higher retention rate by increasing spending on customer service. Additionally, the client was able to develop a marketing strategy that minimized acquisition costs and remarketing costs.

Customer Lifetime Value Predictive Insights

Quantzig’s customer lifetime value prediction engagement helps firms in the telecom industry space to reduce the attrition rates. The engagement also helps companies to gain real-time insights into the customer based on future cash flows and efficiently distinguish customers. This further allows companies to profile the right customers and build long-term relationships.

However, our analysis of the global telecom industry shows that broadband services providers across the globe are facing challenges in terms of:

  • Regulatory reforms: The mounting consumer demand and rapidly advancing communication technology are forcing broadband services providers to reevaluate their business strategy and encourage investments in high-speed networks. Additionally, the development of 5G services is compelling broadband services providers to improve their existing digital infrastructure and meet the growing demands.
  • Diversification: Today, broadband services providers are growing at a rapid pace and are expanding their reach to new markets. Consequently, it becomes essential for these service providers to develop innovative service lines to increase profitability and augment their ROI.

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