How Telecom Customer Analytics Predicted User Behavior Around On-demand Video Plans and Improved Conversions?

Sep 6, 2022

Highlights of the Case Study: 

Particulars Description 
Client A telco giant in the UK wanted to reach a captive customer base and leverage the right partnerships by predicting user behavior around the video-on-demand plans. 
Business Challenge The client wanted to assess the feasibility and response to its proposed plan of raising tariffs across its entire product portfolio to offset the cost of its first 5G spectrum bidding. 
Impact The Quantzig solution helped provide insights into the customers’ dependence on in-house entertainment, which allowed the client plan its product launches to cater to the needs of its customers while covering the cost of 5G spectrum purchases.  

Game-Changing Solutions for the Telecom Sector

   Pandemic of 2020 turned out to be a banner year for the video-on-demand (VOD) industry. VOD technology has disrupted traditional satellite subscriptions and has enabled users to access the content via the Internet on any compatible device at any time. This has allowed users to watch the required range of any domain before it is aired or made live. With the shutting down of entertainment, education, and professional training during the initial phase of the pandemic, consumers found on-demand video plans offered by the telecom industry engaging and comforting.   

Telcos’ VOD bundle partnerships have been working well in recent years with the bundles of VOD (Netflix, Hulu, Disney plus, etc.) and music streaming services (Spotify). One VOD platform and one music streaming service were enough to keep the consumers on board. However, there has been a turnaround in the subscribers’ behavior around the VOD platforms.   

According to Quantzig’s estimates, an average telecom company offers two VOD bundles, and an average consumer subscribes to at least four VOD bundles, implying that users are subscribing to the remaining services directly from the streaming companies. Quantzig, by leveraging its customer analytics solutions, enables the telecom industry to navigate through such opportunities by offering accurate insights on the customer behavior around on-demand video plans.  

The Challenges of the Client 

Our client, the UK-based telco giant, wanted to reach a captive customer base and leverage the right partnerships by predicting user behavior around the video-on-demand plans. The client wanted to raise tariffs across its entire product portfolio to offset the cost of its first 5G spectrum bidding.  

However, rising tariffs across the on-demand video plans might lead its VOD customer base to directly subscribe from the streaming companies instead of the client’s company since it would be more economical for them to do so. This would result in decreased conversions and a higher churn rate. Hence, the client partnered with Quantzig to leverage its customer analytics solutions to get deeper insights into customers’ reliance on VOD plans and user behavior around its own and competitors’ VOD bundles.  

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Quantzig’s Customer Analytics Solutions for Telcos 

The Quantzig bundling platform offered a bundling-as-a-service plan that created a centralized platform for all its bundling activities. We used our customer journey analytics solutions that identified at what stage customers were in the lifecycle journey and integrated it with the client’s Customer Relationship Management (CRM). Quantzig’s customer analytics solutions and bundling services helped the client quickly shift to the multi-on-demand video plans by rolling out multiple partnerships.  

Impact Analysis of Quantzig’s Telecom Customer Analytics Solutions  

Understanding how much and to what extent the users depend on in-house entertainment and learning helped the client plan product launches that appealed to the users’ needs and covered the cost of 5G spectrum purchases.  

Quantzig’s customer and telecom analytics solutions helped the client achieve the following benefits:  

  • Reach conversion rates 10X higher than its rivals  
  • Increase the client’s video-on-demand bundle activation by more than 40% in three months 

By deploying Quantzig’s bundling-as-a-service solutions, the client could focus on the complex part of creating a bundle, looking into its pricing and marketing strategies without worrying about the challenges of rolling out these partnerships.  

Key Outcomes of Telecom Customer Analytics: 

Quantzig’s customer analytics and bundling platform helped the client increase conversion rates and expand its relationship with new and existing customers. This also allowed the client to rationalize the cost increase due to its 5G spectrum purchase. In the highly competitive telecom industry, key vendors need to implement customer behavior analytics to derive insights into the customer’s needs. These insights will equip service providers to create an optimum product bundle to cater to the needs of their customers. 

 Broad Perspective on Customer Behavior Analytics in the Telecom Industry:

Telecom is a fast-changing industry with high churn rates where users’ needs are constantly changing. The key to developing brand loyalty in the telecom industry is to keep pace with these needs. This can only be achieved by identifying the segments and targeting the customers using customer analytics. By evaluating the marketing and sales data, companies can understand customers and thus develop lasting relationships with them. This data can lead to more informed segmentation of services, provide insights on more relevant offers, and clearly understand channel importance. This real-time customer analysis and micro-segmentation can give a competitive edge to the companies by enhancing the customer experience.  

Key Takeaways 

  • Achieved 10X higher conversion rates 
  • Improved customer engagement and loyalty 
  • Increased activation of on-demand bundles 
  • Recovered the cost of purchase of its 5G spectrum 

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