Customer Segmentation Analytics Helped a Major Telco to Tap into Distinctive Customer Segments to Boost Loyalty and Sales

Jun 26, 2019

A European telecom giant which offers a full range of telecom services wanted to boost ROI and drive sales across regions by improving its visibility among loyal customers. To do so, the telecom giant decided to target the most profitable customer segments through promotional campaigns. Having failed to achieve the desired results through promotional campaigns, they approached Quantzig to leverage its expertise in customer segmentation analytics to better understand and prioritize customers based on their value.

The Business Challenge

With rapid advancements in technology changing the telecom landscape, players in this sector are poised to witness increasingly tough times. In fact, the telecom industry is set to face major digital disruptions over the next few years, making it crucial for businesses to reimagine their business models, rebuild a market position, and offer innovative solutions to its customers. Though several opportunities can be unearthed using customer segmentation analytics businesses are not well equipped to identify and capitalize on such opportunities.

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With the growing competition, the telecom major was seeking to improve its churn rate and customer loyalty. To achieve this they decided to examine the customer segments in order to identify and target the high-potential customer groups. By challenging the existing customer segmentation structure, the telecom major wanted to sharpen its customer segmentation analytics capabilities by raising the following questions regarding the benefits of leveraging customer segmentation analytics:

• Do the existing customer segmentation strategies need to be revamped?
• Do the existing customer segments need restructuring?
• Are there hidden business opportunities within untapped customer segments?

Solutions Offered and Value Delivered

To help the client address their challenges Quantzig developed a comprehensive customer segmentation analytics framework to help them improvise their customer segmentation strategies and target new users through personalized marketing campaigns. We also leveraged propensity modeling techniques and robust statistical tools to glean comprehensive insights into various customer segments. As a result, there was a major improvement in the response for the personalized campaigns and the client achieved a 60% increase in customer loyalty when compared to the previous year.

The customer segmentation analytics solutions also helped the client to:

  • Redesign their customer segmentation approach from demographic segmentation to customer needs-based segmentation
  • Tighten characteristics of the existing customer segments
  • Recognize new, distinctive customer groups

Our customer segmentation analytics solutions offer in-depth insights that’ll help you focus on profitable customer segments to drive value. Request a FREE proposal today!

What is customer segmentation analytics?

In today’s competitive business scenario, understanding customer preferences and their value turns out to be crucial to building personalized marketing campaigns that boost sales. Customer segmentation analytics is an advanced analytics-based method that helps businesses to categorize their customers into homogenous groups with a high degree of accuracy, based on past behaviors, buying preferences, CLV, and future behavior.

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