Telecom Services: Leveraging Customer Analytics to Segment Customers and Predict the Rate of Churn
The client: Telecom services provider Area of engagement: Customer analytics The telecom services sector has changed radically in the last couple of years due to the ongoing innovations and developments and companies will continue to expand their operations at a global level. The services at large comprise of an extensive range of applications ranging from mobile internet access, […]READ MORE >>
The client: Telecom services provider
Area of engagement: Customer analytics
The telecom services sector has changed radically in the last couple of years due to the ongoing innovations and developments and companies will continue to expand their operations at a global level. The services at large comprise of an extensive range of applications ranging from mobile internet access, email, text, television, and radio. With the growing concerns pertaining to increase capital expenditures, most service providers are planning to upgrade their network capabilities and expand their service portfolios to meet the rising demands of the customers. Also, additional factors such as increasing disposable income, sturdy economic growth, and increasing preferences for bundled services will contribute to the growth of the telecom services sector. While the presence of numerous over-the-top-players contributes to the growth of the sector, the services at large will be influenced by factors such as:
- Competition from OTT services: The last few years saw a relentless growth in the competition from third-party mobile messaging applications. With the growth in technologies, the consumers will have a wide array of applications to choose from with numerous OTT players offering video calling services. The traditional text services have also been dwindling with a radical decline in the average revenue per user.
- Privacy and security issues: Various telecom service providers maintain a large repository of data, compiling sensitive information of prominent customers. With the rising instances of cyber threats in the recent years, organizations have started facing pressures to maintain a certain amount of security in handling a large amount of information. Moreover, telecom services providers should ensure to implement robust cybersecurity measures to manage information discreetly.
- Development of 5G services: Since innovations such as 5G are paving the way for more advanced connectivity, organizations are facing the need to promote better browsing services with less delay and unlimited connections. Leading conglomerates have already started investing in innovations to produce a network that promises the capabilities of 5G.
To stay relevant in the market space and assess the performance of their network services, leading organizations are leveraging customer analytics solutions. Customer analytics solution refers to the process of determining customer behavior to attract and retain the most profitable customers. Customer analytics also helps businesses gain an accurate view of high-value customers and proactively interact with them.
The Business Challenge
The amount of revenue generated through telecom services is expected to reach 957 billion Euros in the near future.
The client, a prominent telecom services provider, wanted to understand the past buying behavior to gain adequate insights into the customer’s preferences. The client wanted to leverage the use of applications to segment buyers into groups based on their behavior and develop targeted marketing and sales activities to improve the business performance. Through an effective customer analytics engagement, the telecom services provider also wanted to improve customer acquisition, growth, and retention and match their offerings with the right target audiences.
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The Solution Benefits and Business Impact
The customer analytics solution offered by Quantzig helped the telecom services provider assess the probability of churn to target customers with highly relevant offers. Also, the solution offered actionable insights into the brand affinity and the individual’s relationship with the brand. The telecom services provider was also able to engage with the customers through the right message, the right channel, and at the right time. The customer analytics solution also helped the telecom services provider predict the likelihood of the customer’s to churn and identify potential ways to retain the most profitable ones. Moreover, the solution also ensured maximum customer lifetime value through personalized offerings.
Customer Analytics Solution Predictive Insights:
Quantzig’s customer analytics solution helped the client effectively track the customers at every point from their preferences to the probability of churn. The telecom services provider was also able to leverage the use of predictive analytics to monitor the customer usage data and develop innovative ways to reduce customer dissatisfaction.