customer value maximization for a telecom giant
TRANSCRIPT
Customer Value Maximization for an Indian Telecom giantA Xerago Case study
Assignment BackgroundThe GoalThe ScenarioCustomer Value Maximization ApproachThe Measure phaseThe Manage phase – Activities & Areas ImpactedThe Manage Phase – Teams ImpactedThe Maximize phaseConclusion
Assignment BackgroundThe GoalThe ScenarioCustomer Value Maximization ApproachThe Measure phaseThe Manage phase – Activities & Areas ImpactedThe Manage Phase – Teams ImpactedThe Maximize phaseConclusion
Assignment Background
The telecom industry in India was dominated by the pre-paid segment with 97%
of youth and a greater than 90% of new users in the pre-paid segment. The
industry was highly competitive with a few players holding lion's share and
there was a fierce competition from new entrants. Hence it was very critical for
the companies to preserve the hard earned subscribers. The client was facing a
huge customer churn in its Gujarat Circle.
The Goal
Minimize customer churn
The Scenario
TVC/Print/OOH
Search
Display media
Poor usage
High churn
Poor response
RESULTING IN
Tactical Operations Outcomes
SMS
Customer Value Maximization Approach
By making interventions on,
Through objective measures, a
snapshot of client’s marketing
effectiveness on many levels and
dimensions was constructed and
this helped us objectively
demonstrate the effectiveness of
the client’s current marketing
programs.
Based on the current state and
desired end state, the road-map
which involved a re-architecture
of strategy and re-alignment of
resources was developed and
interventions were made to
catalyze the marketing growth
engine.
This was the high value growth
phase where all possible marketing
variable combinations are tweaked
on a concurrent basis to produce
the optimal spend to impact
outcomes. Learning was constantly
updated for ongoing maximization.
MEASURE MANAGE MAXIMIZE
In order to achieve client’s goal, Xerago deployed its proprietary Customer Value Maximization framework, which involved the following 3 stages:
Process Technology
The Measure phase
• Poor offer mechanism
• Low talker, Low SMS segment was churning
• Inappropriate usage of collected data
Parameters X-rayed
Technology and process
Evaluation Results
Marketing programs
Segments
The Manage phase – Activities & Areas Impacted
Process Overhauls:This involved tweaking of offer mapping process and data capture process
Technology InterventionsPropensity, churn models & response learning system
The Manage Phase – Teams Impacted
Usage and retention
IT and analytics reporting
Product
TEAMS IMPACTED
The Maximize phaseXerago setup a concurrent framework to measure the effectiveness of the interventions made to
ensure desired results are delivered. This was achieved by establishing benchmarks for various
interventions and real-time optimization of the efforts. Below are the outcomes.
22% increase in response rate
30% decrease in churn
15% increase in usage
Ongoing churn prediction is happening and appropriate marketing actions are taken to ensure loyalty.
More About the Client:
The client is India's first truly multinational corporation. They are a pan-India
integrated GSM operator offering 2G and 3G services, and have their own NLD
and ILD operations, and ISP license. With revenue in excess of $4 billion;
revenue market share of nearly 15%; and subscriber base of over 121 million in
FY 2013, the client is India’s 3rd largest mobile operator. They rank among the
Top 10 country operators in the world with a traffic of over 1.5 billion minutes a
day.
The client's robust pan-India coverage is built on a network of over 100,000 2G
and 3G cell sites, spread across over 55,000 towns in India.
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