Customer Lifetime Value Engagement: How Quantzig Helped a Wireless Telecommunications Provider Estimate their Marketing Spend

Feb 1, 2018

The client: Wireless telecommunications provider

Area of engagement: Customer lifetime value

Over the past few years, wireless telecommunications services have proved to be effective for the sustenance of businesses as it facilitates effective communication with end-users. The services at large comprise of mobile phones, pagers, and other wireless telecommunications devices such as wireless internet access and video.  With the growing innovations in the telecom industry, organizations are opting for IoT in their applications to streamline their operations and deliver effective services. The rapid growth in the wireless telecommunications space can be attributed to the growing internet penetration, access to smart mobile devices, and advances in wireless technology.

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Although the wireless telecommunications space is witnessing promising growth owing to the growing demand for wireless communications among the end-user segments, several factors may influence the growth of the industry. These include.

  • Security issues: With the trend of digitization reaching its pinnacle, the consumers have better access to a wide array of data services. On the contrary, unlimited access to data can make them more vulnerable to potential threats. Organizations in the wireless telecommunications space should ensure better security in terms of maintaining and handling the data.
  • Equipment expenses: As compared to the conventional counterparts, wireless telecommunications services are considered expensive. Also, additional costs involved in subscribing data services are forcing organizations to offer solutions at affordable costs while meeting the quality requirements. Moreover, organizations should also compare their pricing with that of the competitors and offer more reliable services to the customers.

To counter such challenges and maintain a better relationship with the customers, leading businesses are leveraging solutions such as customer lifetime value. Customer lifetime value aims at acquiring a lot of customers and optimizing their acquisition spending to maximize the value.

The Business Challenge

The client, a prominent wireless telecommunications provider, wanted to estimate the monetary worth of the customers and adequately allocate the money to acquire new customers. The client also wanted to measure the customer’s worth over a specific period of time. With the help of our customer lifetime value solution, the client wanted to maintain statistics of the customers in terms of the expenditures per visit and the total number of visits by week. The primary objective of the client was to understand the past spending habits of the customers and offer products and services to meet the customer’s requirements.

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The Solution Benefits and the Business Impact

The customer lifetime value solution offered by Quantzig helped the wireless telecommunications provider understand their spend on acquiring a new customer. The solution also helped the client make business decisions on sales, marketing, and product development. The customer lifetime engagement also sought ways for the client to accurately keep track of their marketing budgets and adequately allocate their budgets to acquire the most profitable customers. Moreover, the solution can help the client determine robust advertising campaigns such as Facebook ads and YouTube ads to acquire new customers.

Customer Lifetime Value Predictive Insights

The customer lifetime value solution helped the wireless telecommunications provider to gain profound insights into the previous transaction history and the behavioral indicators of the customers. Moreover, the client was able to maintain a robust customer retention strategy to acquire new prospects and retain the most profitable ones. The solution also offered relevant market insights with more personalized messaging to generate 80% of the revenue with the help of 20% of the customers.

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