Tag: telecommunications industry


Quantzig’s Marketing Analytics Solutions Helped a Telecom Industry Firm to Refine their Marketing Campaigns and Optimize Marketing Spend

In the current market scenario, the telecom industry has already established itself as one of the most significant sectors in the world. With the telecom industry changing at a breakneck speed, it has become crucial for telecom services providers to improve their core business processes by zeroing in on strategies that have a direct impact on the bottom line. Thus, companies in the telecom services sector can leverage marketing analytics tools to access the data and make effective marketing decisions. Additionally, with software-as-a-service continuing to witness high demand in a lot of sectors, telecom industry players will need to take advantage of this development by improving their data infrastructure. As customers are more empowered, and dissatisfied customers flock to competitors.

It becomes crucial for companies in the telecom industry to leverage marketing analytics tools to know their customers as well as their business to secure the efficient transformation of data into insights and create a competitive advantage in terms of targeting and retaining their customers. For conglomerates looking to quantify the impact of marketing spends, it becomes imperative to associate with companies that have experience in offering effective marketing analytics solutions.


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Customer Lifetime-Value Prediction for a Telecommunications Company Helps Reduce Customer Attrition Levels

The client: telecommunication company

Area of engagement: Customer lifetime value

The global telecommunications industry is mainly driven by the ongoing innovations and technological developments to offer a wide range of services at low-cost margins to the customers. With the relative significance of the internet, the telecommunication market has manifolded in the last two decades, and the sector is expected to gain significance in the coming years. With the relentless demand for agile and seamless services among the target audiences, global telecom providers are striving to improve their network and offer expanded services to their customers. Moreover, the telecommunications space is also gaining significance owing to the affordability of services and the demand for high internet speed. Although the telecommunication space is witnessing a promising growth owing to the additional services such as storage area network, storage products, and storage networking services; certain factors pose a hindrance to the growth of the telecom space. These factors include:

  • Increasing competition: In the recent years, there has been a considerable increase in the competition among the OTT services space. It is estimated that approximately 2.5 billion people worldwide use message app which is further affecting the text services offered by the telecom space.
  • Innovations: With the integration of IoT services, connecting devices have become more agile and seamless. It is estimated that with the help of IoT services, connected devices are estimated to reach 21 billion by 2020. This relentless growth in innovations is putting a lot of pressure on the telecom space to develop a platform that supports the technology.

To enhance connectivity and offer reliable solutions to the customers, organizations are necessitating the need for a customer lifetime value. Customer lifetime value determines the value of the money that the company spends on acquiring new customers and the customers worth over a specific period of time. The customer lifetime value can be calculated from the revenue generated by the company in terms of the expenditures per visit, the services utilized, and the average customer value by week, and year.QZ- Request free proposal

The Business Challenge

It is estimated that the revenue generated by the telecom services is expected to reach almost 1.2 trillion Euros in 2019.

A prominent client in the telecommunication space with a considerable number of service offerings spread globally wanted to identify the profitable customers and determine their average revenue per use. The client wanted to determine the total value of the customers by source, channel, and campaign. With the help of a customer lifetime value study, the client wanted to efficiently spend their resources to acquire potential customers and retain the most profitable ones. Moreover, the client also wanted to seek ways to make important business decisions about sales, marketing, and product development, and offer reliable customer support to the customers. Through the solution, the client further wanted to develop and maintain a long-term relationship with profitable customers.

QZ- customer lifetime value

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Customer Lifetime Value Solution Benefits

Strategies that we recommended based on our analysis to drive customer loyalty.

The customer lifetime value solution offered by Quantzig helped the telecommunications provider profile the right customers and build a long-term relationship with the customers. The engagement also sought ways for the client to ascertain sufficient marketing efforts to reduce churn rates and ensure right marketing investments toward the right clients. The engagement also sought ways to develop a marketing strategy that maximized retention and net profit and minimized acquisition costs and remarketing costs. Moreover, the engagement helped the client achieve a higher retention rate by increasing spending on customer service.

Customer Lifetime Value Predictive Insights:

The customer lifetime value offered by Quantzig created retention-based models to reduce the attrition rates further. The solution optimized interactions and conversations to drive repeat purchases, customer referrals, reduced support costs, and price premiums. The solutions also offered real-time insights into the customer based on future cash flows and efficiently distinguished customers in terms of the profitable, nearly profitable, and unprofitable segments.

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Churn Rate in The Telecom Industry: How to Take the Bull by The Horns

Churn rate in the telecom industry is getting players in the sector into a ‘cat on hot bricks’ situation. For the uninitiated, churn rate refers to the percentage of subscribers of a service who discontinue or withdraw from the subscription over a period of time. Naturally, this results in loss of revenue and goodwill for a business causing the players in the telecom industry to compete for customers by offering attractive services and offers to retain the customers or subscribers. Why is it important for a company to keep tabs on their churn rate, you ask? Here’s why:

By keeping a close watch on the number of subscribers sticking to and switching from the brand, companies can identify the strength of their customer service division and evaluate their overall growth prospects. Carriers losing customers does not just mean loss of future revenue but also loss of the investment they had made in acquiring these customers. Therefore, it is essential for companies to monitor their churn rate and take necessary actions to rectify it because it will prove heavier on their pockets to acquire new customers than to retain old ones.Free demo

How Can Telecom Industry Players Reduce Churn Rate?

Telecom industry players have realized the importance of monitoring churn rate, and are devising many metrics to determine and predict the probable churn ratio. This would help them to identify gaps well in advance and devise a corrective action plan before they actually lose out on customers. What are some of the common ways that telco companies can effectively reduce their churn rate? Let’s find out:

  • One of the important ways through which you can minimize the churn rate in the telecom industry is to up your game in customer service. Providing clients with a hassle-free service experience and a quick mechanism to handle their queries and complaints will promote their loyalty towards the company.
  • Attractive value-added services are one of the key customer churn rate reduction mechanisms that companies can use. The more the customer feels they are getting value for their money from the services provided by you, the lower are their chances of switching to a competitor brand.
  • In the era of customization, people are more attracted to things that give them a ‘tailor-made’ experience. Personalized tariff plans and service recommendations for customers give them a feeling that the company is giving them specialized care. This is one of the key factors in prompting customer’s brand loyalty.
  • Telecom operators must look beyond making profits and aim at the long-term well being of the company through the satisfaction of their customer. Companies must make clear cut decisions on charging the customers reasonably, and reducing the tariffs wherever possible. This will make the customers feel that the brand is not money-minded but is focused on providing optimum benefits to their customers.

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Disruptive Forces in Telecommunications: The 2020 Scenario

The telecommunications industry is one of the key sectors that has reaped the benefits of the growing popularity of digitization. From big data analytics to machine learning, the telecommunications industry players are leaving no stone unturned to enhance their customer experience. However, looking at the pace of development today, the telecommunications industry needs to take bigger leaps to stay up-to-date. Wonder what are the factors that could hinder the smooth functioning of this industry?Free demo

The Era of Exabyte And Zettabyte

Megabytes and gigabytes are soon going to be a thing of the past. Today, people’s exposure rate to digitization is growing, because of which there is an explosion of connected devices. Due to the upswing in the sale of mobile devices, the amount of data consumed has increased significantly. However, the telecommunications industry, in its current state, is not yet equipped to completely meet these increasing data requirements in the years to come.

Migration from Landline to Mobile Phones

Smartphones are ruling the global market; this has led to mobile connectivity outpacing landline connectivity. Most of the growth is taking place in developing nations, where the majority of the population find it more convenient to use a mobile phone due to its numerous advantages.

Downhill Movement of Prices

In the past decade, a lot of new players have entered the telecommunication industry. One of the main reasons being the promising future and opportunities it presents to its investors. With the increasing competition, the players in the industry are forced to reduce prices to survive the cutthroat competition. Over the years, the cost of services provided by the telecommunications industry is also expected to go lower and lower.

Market Saturation

Every industry goes through three basic stages – introduction, growth, and decline. Currently, the telecom industry is at the peak of growth, which means that the next stage is saturation and decline. With the growth in digitization and introduction of new technology like assisted living facilities becoming popular, there would be a dire need of bandwidth capacity. To meet this demand, the telecom companies would be more focused on adopting technologies to expand the capacity.

Battling with Security

With the internet and network connectivity becoming widely accessible, the security of data is becoming a major concern. Since the telecom operators are the custodians of the networks, they play a pivotal role in fighting the emerging threats. As such, the customers expect operators in the telecommunications industry to be more proactive and meet their expectations.

The Rebirth of Skynet 2.0

Skynet is a network of military communications satellites that exists in the form of space balloons or drone-based systems. This network offers highly secure communications and is expected to be re-introduced into the market by 2020.

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Big Data Analytics: The Next Big Thing in the Telecom Industry?

The growing popularity of the ‘digital era’ has made the telecom sector one of the most rapidly growinFree demog industries across the globe. With increasing competition in the market, telecom companies are adopting the latest technologies that are available in the market to have a cutting edge over their competitors. Big data analytics is one such trend that is becoming popular in the telecom industry due to its utility, but many telecom companies are yet to exploit this technology thoroughly. This is mainly because of the vast amount of complex data that the telecom companies deal with, making it essential to first evaluate the data available thoroughly and then deciding on which data to use to solve a specific business problem.

How Would Big Data Analytics Benefit the Telecom Companies?

The entire telecom value chain is expected to benefit from big data analytics. Many giants among the telecom companies have started to resort to big data analytics to tap and retain customers. Here are some of the benefits that a telecom company would get from adopting big data analytics:

  • Fraudulent behavior can be identified immediately by analyzing call records
  • Analyzing network traffic in real time will help in real-time will help to optimize routing and quality of service
  • Social networking and location-based technologies can be used for tailoring marketing campaigns to individual customers
  • Development of new products and services based on customer insights and behavioral patterns
  • By acquiring a better understanding of the customers, telecom companies are more focused on improving their experience at each touch point through customized offerings, fast feedback, and high-performance services
  • Taking advantage of the data available and the market insights with the help of big data analytics will help telecom companies to reduce costs
  • Big data analytics opens new paths of revenue generation for telecom companies by assisting in formulating customized services for customers

Challenges Faced by Telecom Operators in Employing Big Data Analytics

As much as big data analytics looks promising in the telecom industry, there are many challenges that they face while implementing big data solutions.


Telecom companies deal with a wide variety of data that holds various customer details such as the call data records, billing information, connected devices, etc. This data comes from different unstructured sources. So, it becomes difficult for the service providers to re-structure and organize this data to carry out the necessary analysis.


Customers use large volumes of data within a small time frame. Therefore, it becomes difficult for telecom companies to record these vast amounts of transactions in a short span of time.


The user data generated is complex and unstructured. Also, no specific format is used for storing data. The user data collected varies with demographics, lifestyle, geography, etc. Therefore, if the data is not filtered correctly, big data analytics may provide unwanted results.

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Top Three Trends in the Telecommunications Industry – Vision 2020

The last couple of decades have been a mix of growth opportunities and roadblocks for the telecommunications industry. The sudden surge in technological advancements, innovations, and digitalization has revolutionized and transformed the telecommuFree demonications industry. Telecommunications service providers improved their infrastructural capabilities across platforms such as mobile and broadband, and established a connection between services and applications so as to enhance user experience. However, the companies in the telecommunications industry are facing liquidity crunch in their attempt to meet customer demands, upgrade their networks, and reinvent business models. Let’s look at some of the trends in the telecom sector.

Integrating Services with Applications

With the introduction of new technologies and increasing competition, the telecom companies must find a way to integrate services with applications while striving to keep the prices low. As a result, being connected comes at a very little price. However, in the next five years, market experts anticipate major telecom companies to be acquired by content or service companies as the latter builds and expands its data capturing capabilities.

Large Scale Adoption of Internet of Things (IoT)

The telecommunications industry will witness a large-scale adoption of IoT connected devices; thereby, generating mammoth amounts of consumer data by the end of 2020. The massive amount of data will help the telecom companies to gain an in-depth understanding of the consumer needs and preferences. These insights will help them to either leverage it to drive organizational growth or sell them to companies from other industries such as retail, automotive, banking, and transportation.

Wireless Options Increases Mobility and Security Threats

Earlier, people would make use of landlines and hardline connectivity. But with the advent of 4G and LTE, wireless connectivity is the new trend which has eliminated the older modes of communication. The introduction of mobile handsets has made lives easier, convenient, cheaper, and highly accessible. As a result, consumers across the globe have raised concerns over the security of data and information generated from via these networks. The telecom companies will have to direct their efforts towards addressing consumer needs, taking preemptive measures to protect the data, and add value to the internet value chain by adopting a range of operational and technical innovations.

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Marketing Mix Modeling Engagement Increases Marketing ROI for a Telecommunication Industry Client

To identify and attract high-value customers in today’s volatile telecommunication industry, organizations must allocate marketing and media spend wisely. Successful marketing mix modeling projects require contributions from both the business and technical teams. With the advent of digital channels and shift in consumption patterns of the customers, Request Proposalmarketing mix modeling and techniques need to be updated with the unprecedented demand for more real-time and customized solutions.

Marketing mix modeling estimates the impact / effectiveness of media executions across channels to determine the ROI and incremental sales. It helps telecommunication industry players predict future media investments and allocate funds in a more precise manner. Marketing mix modeling also help in creating brand and product awareness to drive penetration and influence customers to upgrade service and product packages.

The Business Challenge

A leading telecommunication industry player in the US wanted to increase its market share in the retail space based on marketing mix modeling of marketing spends. The client had operations across multiple geographies and wanted to understand the impact of its media investments at both national and local levels for products such as – wireless, internet, and cable television. There was a need to improve profitability and cost savings based on optimized media spending.

Our Approach

By assessing competitor sales data, media spending, and GRPs for display, paid search, social media, and purchase funnel indicators, Quantzig’s marketing analytics team collected data to develop effective marketing mix models.


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Marketing Mix Modeling Benefits

  • Improved ability to quantify marketing effectiveness of channels and events in terms of ROI, revenue, contributions, and incremental sales
  • Supported future investment decisions based on simulated scenarios
  • Created a real-time solution for investment decisions, providing executive management a powerful decision support system

ROI Simulator for Scenario Analysis and Planning


Marketing Mix Modeling Predictive Insights

  • Comparative ROI analysis across media types based on advanced regression methods for each product (wireless, internet, and cable)
  • Insight into contribution of brand equity advertising on incremental sales at national and local levels
  • Campaign analysis of individual campaigns to understand the ROI and incremental sales generated at a granular level for cable television
  • Synergy analysis to identify direct and indirect impact of media types on incremental sales and the ROI generated

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 To view an updated and more comprehensive version of a similar engagement, read our latest article.