strategies for survival in telecom\'s perfect storm
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A transition strategy for converging telecom business model for 3G and 4G playersTRANSCRIPT
Strategies for Survival from a Perfect Storm in Telecom
Ryan Hendricks
Campaignist, Inc.
September 2010
Survival Strategies for Telecom’s Perfect Storm Rising infrastructure costs and falling margins
• Global telecom businesses are under pressure to transform themselves by a “perfect storm” of business, technology and market pressures;– Addressable Market saturation at
high-end ARPU segments;
– Falling voice and VAS margins;
– Pending number portability;
– Telecom handsets are becoming the platform of choice for converged media for the masses (Phone + TV + PC + Cinema);
– New skills and revenue model strategies are critical.
Voice Margins
VAS / Data Margins
Addressable Market
3G/4G-enabled Services
ARPU3G/4G
2 Copyright Campaignist, Inc. ®
Survival Strategies for Telecom’s Perfect Storm Five (5) Key business transformation drivers
• Quantity Focus becoming a Quality Focused Strategy
– Customer relationship is moving up the value chain
– Volume of acquisitions will not be sufficient to support new business models – especially given falling margins for traditional services
New Business Drivers
1. Content and Context
2. Customer Cultivation
3. How, Why, When, Where
4. Insight Process excellence
5. Network applications
Old Business Drivers
1. Voice and VAS
2. Customer Acquisition
3. Who, What
4. Product excellence
5. Network coverage
Quantity focus becoming a quality focus
3 Copyright Campaignist, Inc. ®
Beco
min
g
Survival Strategies for Telecom’s Perfect Storm Business transformation success factors
• Successfully competing in this transformed market will require new skills in understanding customers, anticipating their needs and wants, and developing new products and services rapidly to meet these needs;
– Today’s consumers have no time for SPAM and are increasingly exercising their right to not be disturbed by irrelevant promotions and communications–On average >50% of subscribers are on Do-Not-Disturb – blocking direct promos
3G/4G Business Drivers 3G/4G Success Factors
1. Content and Context Partnership strategies
2. Customer Cultivation Listen, learn, apply insights
3. How, Why, When, Where 3G Master Data Roadmap
4. Insight Process excellence Align sales, marketing, retail
5. Network applications Leverage network capabilities
3G/4G business drivers and key success factors
4 Copyright Campaignist, Inc. ®
Survival Strategies for Telecom’s Perfect Storm Multi-media converged “Monetization of Time” (MOT)
• Successful media businesses (telecom, internet, television, cinema and traditional publishing) compete to make the most revenue out of every minute of a customer’s available time and are proxies for emerging smart phone driven telecom’s 3G/4G battle:
• With the advent of 3G/4G networks and the mobile phone becoming the platform of choice for convergent media, telecom companies have to quickly move up the maturity curve on MOT;
– And take advantage of the always on, always available nature of the broadband cell phone by providing the customer with targeted, relevant, instant access to what they need, what they want, and productivity tools that free up more time …
– The moments in the morning, at lunch, in the evenings, on weekends, during holidays and even sick-days when a consumer can decide “what do I want to do now?” are the focus of media businesses everywhere;
5 Copyright Campaignist, Inc. ®
• Customer Value Management (CVM) is often viewed through a
one-dimensional lens – a company’s value of their customer.– Effective CVM includes our value of them and their value of us
Survival Strategies for Telecom’s Perfect Storm Understanding both sides of the CVM coin
INSIDE-OUT (our value of them):
How They Satisfy Our Needs
OUTSIDE-IN (their value of us):
How We Satisfy Their Needs
1. Revenue 1. Value-for-money
2. Age-on-Network 2. Customer Satisfaction
3. Higher credit rating 3. Flexible credit limits
4. Lower Cost-to-Serve (CTS) 4. Easy, multi-channel self-service
5. Increasing number of product/service
subscriptions
5. Single trusted vendor for all desired
products/services, everywhere
6. High-end, high-volume, right time
product/service users
6. High-performance, high-value, timely
product availability
7. Social Network ARPU value 7. Social Network app’s and services
8. Recommendations and referrals 8. Pride of product/service ownership
9. Providing insights for new products 9. Providing incentives for feedback
Companies focus mostly on just 1 side of the Customer Value coin
6 Copyright Campaignist, Inc. ®
Survival Strategies for Telecom’s Perfect Storm A best-practice approach to segmentation maturity
Segmentation Capability Maturity Model
Valu
e D
elivere
d
Leading
WHEN
WHO
HOW
WHY
WHAT
OptimizingPracticingDevelopingAware
Reactive Request Mgmt
Customer Profile
Customer Behavior
Delivery Decision Rules
Self-Learning
Segmentation
Low
Value
High
Value
Predictive Modeling
Customer Event Triggers
WHERE
HOW MUCH
Level of Maturity
7 Copyright Campaignist, Inc. ®
Survival Strategies for Telecom’s Perfect Storm A best-practice approach to segmentation maturity
• Financial/Value Segmentation
– Mostly ARPU & Credit context
• Interaction & C-SAT Segmentation
– Issues and touch-point context
• Propensity to XYZ Segmentation
– Deciles of likely-to-churn context
• Lifecycle & Lifestyle Segmentation
– Spending, time-of-day, geo & products
• Interest-Driven Segmentation
– Entertainment, interaction, commerce …
• Social Networking Segmentation
– Network ARPU, calling patterns, CLV
New Segmentation
New segmentation will be common across all areas; GSM/ CDMA,
Prepaid/post paid/ and across Businesses
BASHFUL
Low-Medium Usage
Worker Bee
Payments on time
SNEEZY
Sporadic Usage
Intermittent Issues
Negative WOM
DOPEY
High Usage
Lots of Issues
Loves VAS
DOC
High Usage
Queen Bee
Pays on Last Day
HAPPY
Very High Usage
No C-SAT Issues
Large Social NW
L-1 L-2 L-5
L-3 L-4
Credit limit intact
GRUMPY
Frequent complaints
Usage Steadily Falling
Payments on time
C-4
1.1
4.0
10.3
18.8
26.2
33.6
43.0
36.7
46.2
51.7
0 20 40 60
1
2
3
4
5
6
7
8
9
10
Decil
e
Do Not Disturb
0.0
0.6
7.0
22.0
19.1
16.6
24.1
42.2
31.4
46.7
0.0 20.0 40.0 60.0
1
2
3
4
5
6
7
8
9
10
Decil
e
Do Not Disturb
0.6
2.1
13.5
19.2
29.5
34.4
31.9
55.7
43.4
44.2
0.0 20.0 40.0 60.0
1
2
3
4
5
6
7
8
9
10
Decil
e
Do Not Disturb
NI HNI NHNI
ID EXAMPLES OF LIFESTYLE-DRIVEN USAGE SEGMENTS LIFESTYLE USAGE CATEGORY
CS-1ABOVE HALF-TANKERS: Very active high credit balance Subscribers who rarely allow their credit limit to fall
below half the maximum.CREDIT AND SPENDING PROFILES
CS-2RUNNING ON FUMES: Heavy users who regularly use services while at the edge of their disposable credit,
once in a while falling into suspension mode.CREDIT AND SPENDING PROFILES
TD-2WHILE-AT-WORKERS: Subscribers who use services during working hours but not before or after (business
users or homemakers talking to friends or vendors).TIME AND DAY USAGE PROFILES
TD-3WHILE-AT-PLAYERS: Subscribers who use services after working hours and on weekends and avail of
entertainment VAS (astrology, jokes, sports, etc…).TIME AND DAY USAGE PROFILES
GO-1 MOBILE PROFESSIONALS: Frequently roam away from their Home State. GEOGRAPHIC USAGE
GO-2 AWAY-FROM-HOME WORKERS: Frequently make STD calls. GEOGRAPHIC USAGE
PU-1 DATA CARD USERS: People who use Data Cards for internet access (and VOIP) PRODUCT USAGE – DATA CARD
PU-2 MULTIPLE SUBSCRIPTIONS: People who have more than one RCOM service. PRODUCT USAGE – MULTIPLE RCOM
SN-1POPULAR QUEEN BEES: Subscribers who receive much more inbound contact from many different people
than the outbound contacts they initiate.SOCIAL NETWORK PROFILES
SN-2 LONELY WORKER BEES: Subscribers who make much more outbound contact than they receive from others. SOCIAL NETWORK PROFILES
Religion
There are 1,000’s of Potential Addressable Micro-segments based on existing data.
8 Copyright Campaignist, Inc. ®
Survival Strategies for Telecom’s Perfect Storm A segment behavior personification example
TERMINATED
Voluntary
Involuntary
Migration
COMATOSE
Active then asleep
Open Issue
Credit limit intact
IN JAIL
Suspended
Grace
Negative Balance
GRUMPY
Frequent complaints
Usage Steadily Falling
Payments on time
C-2
C-3 C-4
C-1
Five (5) Examples Likely-to-Churn Behavior Segments
SNEEZY
Sporadic Usage
Intermittent Issues
Negative WOM
C-5
A simple example for illustration purposes only.
9 Copyright Campaignist, Inc. ®
SLEEPY
Always low usage
No complaints
Payments on time
L-5
BASHFUL
Low-Medium Usage
Worker Bee
Payments on time
DOPEY
High Usage
Lots of Issues
Loves VAS
DOC
High Usage
Queen Bee
Pays on Last Day
HAPPY
Very High Usage
No C-SAT Issues
Large Social NW
Survival Strategies for Telecom’s Perfect Storm A segment behavior personification example
L-1 L-2
L-3 L-4
Five (5) Examples of Likely-to-Remain-Loyal Behavior Segments
10 Copyright Campaignist, Inc. ®
A simple example for illustration purposes only.
Survival Strategies for Telecom’s Perfect Storm A segment behavior matrix example
Churn-Loyalty
Segment
C-1: Terminated CS3, CS-4 GO-2 PU-3
C-2: In Jail CS-2, CS-3 TD-3 SN-1 PU-5, PU-8
C-3: Comatose CS-5 TD-2 GO-1, GO-4 PU-2, PU-4
C-4: Grumpy CS-2 TD-1 SN-2 PU-4, PU-7
C-5: Sneezy CS-5 GO-3 PU-3
L-1: Happy CS1, CS-4 TD-3 SN-1, SN-2 GO-1, GO-4,
GO-5, GO-6
PU-1, PU-2,
PU-4, PU-8
L-2: Dopey CS1, CS-4 TD-1 SN-2, GO-2 PU-1, PU-2,
PU-4, PU-8
L-3: Doc CS1, CS-4 TD-2 SN-3 GO-5, GO-6 PU-1, PU-2,
PU-4, PU-8
L-4: Bashful CS-5 SN-4 GO-4 PU-1
L-5: Sleepy CS-4 TD-3 SN-2 GO-1 PU-8
Credit
&Spending
Lifestyle
Time & Day
Usage
Lifestyle
Social
Networks
Lifestyle
Geographic
Usage
Lifestyle
Product
Usage
Lifestyle
11 Copyright Campaignist, Inc. ®
A simple example for illustration purposes only.
Survival Strategies for Telecom’s Perfect Storm Adding interests creates 1000’s of micro segments
Adding financial,
lifestyle, interest
and other data
further extends
the targeting to
1000’s of micro
segments.
12 Copyright Campaignist, Inc. ®
Survival Strategies for Telecom’s Perfect Storm Untargeted promos closing key contact channels
• Poorly segmented, untargeted campaign tactics have resulted in a majority
of subscribers closing key promotional channels (DNC/DND*)
– Those who value their time the most (the busiest) subscribe to DNC/DND fastest;
– As a result, ARPU per Value-Added-Service (VAS) Subscriber Sale has fallen steadily
AR
PU
pe
r S
ub
scri
be
r
High
ARPU
Low
ARPU
NU
MB
ER
of S
ub
scrib
ers
Low No of
Subs
High No of
Subs
If High Value Subscribers DND First
Eventually mostly Low value subscribers remain
A high number of Low value subscribers
remain in this part of the pyramid.
As the Net DND Base Increases …
AR
PU
AR
PU
AR
PU
AR
PU
DN
DDN
D
DN
DDN
D
The ARPU per Value-Added Sale Falls.
*DND is Do Not Disturb (Do Not Call)
13 Copyright Campaignist, Inc. ®
Survival Strategies for Telecom’s Perfect Storm Revenue impact of advanced segmentation
• A recent Gartner article highlighted the need to move beyond the traditional static promotions we use today to dynamic, interactive, value-focused ones with higher response and conversion rates (ROI). The response rates for each level are:
• LEVEL 1 generates a 2% response – Traditional static promotions (1-way):
– A. traditional segmentation with promotions based on demographics like geo area and spend
• LEVEL 2:generates a 10-15% response – Dynamic promotions (individual):
– Active real-time listening of customer behavior with triggers generating personal promotions.
• LEVEL 3:generates a 20-30% response – Super micro-segmentation (network)
– Leveraging viral marketing through social networks to optimize network ARPU and CVM
• LEVEL 4 creates brand new incremental revenue streams from Partner promotions
– Leveraging customer insights to generate new sources of incremental revenue from location-and time-based targeted mobile advertising and content subscriptions with partners.
http://www.gartner.com/technology/media-products/custom_multimedia/rate_integration.html
14 Copyright Campaignist, Inc. ®
Survival Strategies for Telecom’s Perfect Storm Recommendations for immediate next steps
• Examples of initiatives that should be initiated or expanded;
1. Product usage behavioral clustering studies: Grouping subscribers based on their known behavior;
2. Customer Lifetime Value Studies (statistical models): Estimation of direct and indirect customer value for improving prioritization and ROI of CRM investments;
3. Macro-level behavioral segmentation (using location data): Identification of housewives, professionals, office staff and laborers based on location-based tracking and usage data;
4. Micro-segmentation-based propensity targeting: Using existing CDR and other granular usage data, apply predictive modeling tools to identify high-propensity 3G/4G targets from existing and prospective customers (and prioritize them based on CLV);
15 Copyright Campaignist, Inc. ®
Survival Strategies for Telecom’s Perfect Storm An example of telecom behavioral clustering
ClusterAvg
ARPUCost Per
Unit# IN-Calls
#OUT-Calls
IN-Calls Bill Dur
OUT-Calls Bill Duratn.
OUT-Roam Dur
OUT-ILD IN-ILDAll
ComplaintsBill
ComplaintsIN-SMS
AllIN-SMS
LocalIN-SMS
STD
1 504.77 17.58 75.18 75.02 106.75 127.32 8.4 0.92 0.05 0.82 0.2 38.97 12.36 3.54
2 673.42 3.06 196 173.71 308.22 278.2 13.26 1.29 0.08 0.88 0.21 63.16 27.58 7.84
3 927.21 5.8 215.48 335.96 306.99 610.73 34.86 2.17 0.05 0.87 0.2 62.65 25.83 7.79
4 951.06 1.48 425.6 318.26 723.1 511.54 21.76 2.58 0.09 0.9 0.19 117.87 68.1 17.37
5 1243.19 2.89 398.02 604.33 562.67 1013.07 49.98 2.99 0.07 0.93 0.19 94.19 47.7 13.32
6 1289.07 0.96 801.13 547.21 1511.51 935.43 35.93 3.69 0.14 0.97 0.17 195.6 124.15 33.55
7 1294.39 14.53 215.25 541.19 410.75 2168.21 184.86 1.46 0.12 1.03 0.26 93.9 42.26 25.77
8 1732.47 2.1 693.4 1002.96 948.38 1577.06 62.45 4.51 0.11 0.96 0.17 138.64 78.23 20.05
9 1971.42 2.61 915.11 1458.19 1342.06 2847.41 90.57 4.15 0.06 1.07 0.19 186.01 114.52 28.45
10 1358.64 26.76 196.74 720.16 385.33 5645.82 326.26 0.6 0.01 1.1 0.35 104.51 36.33 42.45
ClusterAvg
ARPUCost Per
Unit# IN-Calls
# OUT-Calls
IN-Calls Bill Dur
OUT-Calls Bill
Dur
OUT-Roam Dur
OUT-ILD IN-ILDAll
Complaints
Bill Complaint
s
IN-SMS All
IN-SMS Local
IN-SMS STD
1 10 9 10 10 10 10 10 9 9 10 5 10 10 10
2 9 6 9 9 8 9 9 8 5 8 3 8 8 8
3 8 7 6 7 9 7 7 6 8 9 4 9 9 9
4 7 2 4 8 4 8 8 5 4 7 8 4 4 6
5 6 5 5 4 5 5 5 4 6 6 7 6 5 7
6 5 1 2 5 1 6 6 3 1 4 9 1 1 2
7 4 8 7 6 6 3 2 7 2 3 2 7 6 4
8 2 3 3 2 3 4 4 1 3 5 10 3 3 5
9 1 4 1 1 2 2 3 2 7 2 6 2 2 3
10 3 10 8 3 7 1 1 10 10 1 1 5 7 1
16 Copyright Campaignist, Inc. ®
Behavioral clusters example
Cluster 1: 9th or 10th in everything except - #5 in BILL COMPLAINTS
Cluster No.
Avg. ARPU
1 504.77
2 673.42
3 927.21
4 951.06
5 1243.19
6 1289.07
7 1294.39
8 1732.47
9 1971.42
10 1358.64
1
4
7
10
9
2
6
3
8
5
Cluster 2:8th or 9th in all except ILD-IN - #3 in
BILL COMPLAINTS
Cluster 3:8th or 9th in all except ILD, NLD and #4
in BILL COMPLAINTS
Cluster 4: #4/5 in 14/34 Measures - #2 ARPU per MOU and in #3 in IN-Local Onnet MOU
Cluster 5: #4/5 in 19/34 Measures - #3 in Local
OUT Calls MOUCluster 6: #1/2/3 in 19/34 Measures - #1 ARPU per MOU, INCOMING - ILD, NLD, ON-OFFNET, SMS
Cluster 7: #2 in ILD-IN and ILD OUT (all) and NATIONAL ROAM - #2 in BILL COMPLAINTS
Cluster 8: #1 ILD-OUT MOU, #2/3 in 20/34 Measures - #2 in OUT, ARPU and #10 in BILL COMPLAINTS
Cluster 9: #1 in 13/34 Measures and #1/2/3 in 30/34, #4 in ARPU per MOU, #7 ILD-IN, #6 in BILL COMPLAINTS
Cluster 10: #1 IN 10/34 Measures,#1 SMS, Local IN -#1 in BILL COMPLAINTS, #1 in ARPU per MOU, #10 in ILD, #8/9 in OFF-net-IN
Survival Strategies for Telecom’s Perfect Storm An example of telecom behavioral clustering
Behavioral clusters example
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Survival Strategies for Telecom’s Perfect Storm Customer Lifetime Value (CLV) Study example:
AC : Acquisition Cost (one time)
Rt : Revenue at time “t”
SCt : Servicing Cost at time “t”
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CLV calculation formula example
Survival Strategies for Telecom’s Perfect Storm Product usage by time-of-day points to needs
• To monetize subscriber time better than our competitors, we need to know:
– Whether they use our services for work, play, family or a combination;
– When and where they use our services;
• So if we know what they use our services for, we need to know how and when we should try to promote something to them based on:
– Their Supply of available time and attention – When they’re more likely to Listen
– Their Demand for what we’re offering (probability of additional needs and wants)– And our ability to provide them
0
2
4
6
8
10
At Work
At Play
19 Copyright Campaignist, Inc. ®
Survival Strategies for Telecom’s Perfect Storm Product usage by time-of-day points to needs
While at Play Segments:
• End-of-the-day, early morning calls home or two fellow party-goers;
• Planning the weekend, evening, lunch, outings with friends/co-workers, etc…;
• Calling local friends, planning the evening, chatting, web-surfing;
• Subscribers making and receiving calls from friends or relatives overseas (in/out);
• Families making and receiving calls from overseas.
While at Work Segments:
• Weekday business calls, conference calls, sales calls, vendor calls, etc…
• Saturday first-half and Sunday last-half of the day business calls
• Except for those who work all day Saturday and those that are off Saturdays
WEEKEND BTS-01 BTS-02 BTS-03 BTS-04 BTS-05 BTS-06 BTS-07 BTS-08 BTS-09 BTS-10
00:00-01:00
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19:00-20:00
20:00-21:00
21:00-22:00
22:00-23:00
23:00-24:00
Weekend While-at-Play – Use by BTS
Sat/Sun by BTS
WEEKDAY BTS-01 BTS-02 BTS-03 BTS-04 BTS-05 BTS-06 BTS-07 BTS-08 BTS-09 BTS-10
00:00-01:00
02:00-03:00
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21:00-22:00
22:00-23:00
23:00-24:00
Weekday While-at-Work – Use by BTS
Mon-Fri/Sat by BTS
Home Work
Usage: Low/No Medium High
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BTS = local cell transmitter
Survival Strategies for Telecom’s Perfect Storm Daily mobility patterns identify type of user (home/work)
Usage: Low/No Medium High
WEEKDAY BTS-01 BTS-02 BTS-03 BTS-04 BTS-05 BTS-06 BTS-07 BTS-08 BTS-09 BTS-10
00:00-01:00
02:00-03:00
03:00-04:00
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19:00-20:00
20:00-21:00
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22:00-23:00
23:00-24:00
Before & After Work – Use by BTS
Mon-Fri/Sat by BTS
WEEKEND BTS-01 BTS-02 BTS-03 BTS-04 BTS-05 BTS-06 BTS-07 BTS-08 BTS-09 BTS-10
00:00-01:00
02:00-03:00
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20:00-21:00
21:00-22:00
22:00-23:00
23:00-24:00
Weekend While-at-Play – Use by BTS
Sat/Sun by BTS
WEEKDAY BTS-01 BTS-02 BTS-03 BTS-04 BTS-05 BTS-06 BTS-07 BTS-08 BTS-09 BTS-10
00:00-01:00
02:00-03:00
03:00-04:00
04:00-05:00
05:00-06:00
06:00-07:00
07:00-08:00
08:00-09:00
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19:00-20:00
20:00-21:00
21:00-22:00
22:00-23:00
23:00-24:00
Weekday While-at-Home – Use by BTS
Mon-Sun by BTS
WEEKDAY BTS-01 BTS-02 BTS-03 BTS-04 BTS-05 BTS-06 BTS-07 BTS-08 BTS-09 BTS-10
00:00-01:00
02:00-03:00
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04:00-05:00
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20:00-21:00
21:00-22:00
22:00-23:00
23:00-24:00
Weekday While-at-Work – Use by BTS
Mon-Fri/Sat by BTS
21 Copyright Campaignist, Inc. ®
BTS = local cell transmitter
Survival Strategies for Telecom’s Perfect Storm Overlaid type of usage by channel (www, voice, text)
Usage: Low/No Medium High
WEEKDAY BTS-01 BTS-02 BTS-03 BTS-04 BTS-05 BTS-06 BTS-07 BTS-08 BTS-09 BTS-10
00:00-01:00
02:00-03:00
03:00-04:00
04:00-05:00
05:00-06:00
06:00-07:00 WWW
07:00-08:00 V WWW
08:00-09:00 V V V V V
09:00-10:00 S V V
10:00-11:00
11:00-12:00
12:00-13:00
13:00-14:00 V S WWW
14:00-15:00 V S WWW
15:00-16:00
16:00-17:00
17:00-18:00
18:00-19:00 V V
19:00-20:00 V V V
20:00-21:00 V S S V V V
21:00-22:00 V S V V V
22:00-23:00 WWW S S
23:00-24:00
WEEKEND BTS-01 BTS-02 BTS-03 BTS-04 BTS-05 BTS-06 BTS-07 BTS-08 BTS-09 BTS-10
00:00-01:00 V V V V V V V V V
02:00-03:00 S S S S S
03:00-04:00
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05:00-06:00
06:00-07:00
07:00-08:00
08:00-09:00 S
09:00-10:00 V V S S
10:00-11:00 V V S WWW
11:00-12:00 V V S
12:00-13:00 V S V V
13:00-14:00 V V S V
14:00-15:00 V V S V
15:00-16:00 V V S V V
16:00-17:00 V V V
17:00-18:00 V V S
18:00-19:00 V S S WWW
19:00-20:00 S V WWW WWW
20:00-21:00 V V V V
21:00-22:00 WWW WWW V S
22:00-23:00 WWW S S S S
23:00-24:00 WWW WWW WWW WWW WWW WWW WWW WWW WWW
WEEKDAY BTS-01 BTS-02 BTS-03 BTS-04 BTS-05 BTS-06 BTS-07 BTS-08 BTS-09 BTS-10
00:00-01:00
02:00-03:00
03:00-04:00
04:00-05:00
05:00-06:00
06:00-07:00
07:00-08:00
08:00-09:00 WWW
09:00-10:00 WWW V V V
10:00-11:00 V S S V
11:00-12:00 V S V S
12:00-13:00 S V V V S
13:00-14:00 S S V V
14:00-15:00 WWW V S V
15:00-16:00 V V S S V
16:00-17:00 V V V V S
17:00-18:00 V S V V
18:00-19:00 V WWW V
19:00-20:00 V V
20:00-21:00 V S
21:00-22:00 V
22:00-23:00 WWW
23:00-24:00
Weekday While-at-Home – Use by
Product & BTS
WEEKDAY BTS-01 BTS-02 BTS-03 BTS-04 BTS-05 BTS-06 BTS-07 BTS-08 BTS-09 BTS-10
00:00-01:00
02:00-03:00
03:00-04:00
04:00-05:00
05:00-06:00
06:00-07:00 WWW
07:00-08:00 WWW S
08:00-09:00 S V V
09:00-10:00 V V S S
10:00-11:00 WWW V WWW
11:00-12:00 V V
12:00-13:00 V V
13:00-14:00 WWW S S V
14:00-15:00 WWW S S V
15:00-16:00 S S V
16:00-17:00 V
17:00-18:00 S S V
18:00-19:00 S WWW V V
19:00-20:00 S WWW V V
20:00-21:00 WWW V V V V S
21:00-22:00 V V V S S
22:00-23:00 V WWW WWW
23:00-24:00
Weekday While-at-Work – Use by
Product & BTS
Mon-Fri/Sat by BTS
Sat/Sun by BTS
Mon-Sun by BTS
Weekend While-at-Play – Use by
Product & BTS
Before & After Work - – Use by Product
& BTS
Mon-Fri/Sat by BTS
22 Copyright Campaignist, Inc. ®
BTS = local cell transmitter
Survival Strategies for Telecom’s Perfect Storm Micro-segmentation-based targeting (model based):
• Lifestage, Lifestyle, Segmentation tracking for each new and high-value 3G/4G target subscriber
– To optimize incremental revenue and retention (See following 2 slides)
• A "What's Your Interest" Behavior Segmentation study based on 7-digit SMS numbers and keywords to outside vendors;
– A data mining exercise to understand subscriber purchases and the interests they reflect for our subscribers – to improve targeting
• The Next-Best-Offer(s) study
– Identifying 1-5 high-propensity-to-purchase Offers (in priority sequence)
– To include 3G/4G offering models to identify highest-propensity targets
• Credit rating (for new subs) through their Network Credit Score (NCS) based on the credit of known subscribers they call in their first weeks;
– A study of the assumption that a new subscriber’s credit score / default propensity rating will be similar to that of his/her friends and/or co-workers with whom he/she speaks;–Very useful in the first weeks/months of a subscriber’s relationship when direct credit
history is not available
23 Copyright Campaignist, Inc. ®
Survival Strategies for Telecom’s Perfect Storm Revenue & retention strategies by lifecycle & segment
C
U
S
T
O
M
E
R
T
R
A
C
K
S
1. First Sales & Mktg Contact
3. First Call-SMS-Data
4. First Voice Promotion
5. First Data, H/S or VAS Promo
6. First Cust. Care Contact
7. First Outgoing Call Barring
8. First Churn Prevention
9. First Service Reactivation
2. First Cust. Documents
10. First Referral Request
11. First Win-Back Attempt
Wk-1 Wk-2 Wk-3 Wk-4
Rchg Amt
Week-1 Month-1 Qtr-1 Week-2
• Prospect Acq.• Lead Source
• Right Plan?• Multi-SIMs?
• CAV-CV-AV• Demographics
• Interests?• Referrals?
• QA Monitoring• Roam-STD-ISD
• Credit needs?• Referrals?
• On-Net-SMS• Roam-STD-ISD
• Call Patterns?• Offers?
• Data, VAS• GPRS, WAP
• Handset?• Get email add?
• Issue• Request
• Billing?• Quality?
• Usage high• Payment late
• Extend credit ?• Solve Issue ?
• Solve issue• Add value
• Handset?• Plan or Pack?
• Money• Documents
• Higher limit?• Other help?
• Contact info• Incentives
• CUG?• Cash rewards
• Alt contact• Solve issues
• Pre-MNP?• Post-MNP?
First Experience Includes Action/Offer
24 Copyright Campaignist, Inc. ®
Survival Strategies for Telecom’s Perfect Storm Revenue & retention strategies by lifecycle & segment
1. Segment customer base by how they use and value our services during the day:
– Personal usage
– Family usage
– Productive usage
– Non-usage
2. Track this behavior from first contact with the customer using existing systems and data:
– Optimize return-on-customer interaction from both a revenue and customer satisfaction perspective (the definition of CVM)
– Automate tracking of key events and set up proactive solution triggers.
1. Map the behavior of new and existing high-value customers from first contact to better understand:
– When they use the services
– How they use the services
– What issues they might face
– Opportunities for add-on services
2. Create a Net Customer Value (NCV) for each subscriber:
– Their social network profile and that of their contacts including in/out patterns, credit profiles, and more;
– Their network ARPU based on the total revenue at risk x AON (with incoming + outgoing calls) if they port out;
Strategy Tactics
25 Copyright Campaignist, Inc. ®
Survival Strategies for Telecom’s Perfect Storm Recommendations for immediate next steps
• A series of 2-5 day workshops can be run with a qualified facilitator for each of the 5 key success factor areas for the purpose of:
– Gathering, analyzing and reporting on the current state of readiness vis-à-vis competitors and global best-practices;
– Informing and transferring knowledge of how leaders in other 3G/4G-enabled markets achieved and maintained leadership;
– Suggesting a desired best-practice state for teams given existing capabilities and resources;
– Detailing the critical-path actions required to ensure organizational readiness and implementation;
26 Copyright Campaignist, Inc. ®
Survival Strategies for Telecom’s Perfect Storm Recommendations for immediate next steps
• Workshops would then be followed by implementation support as needed to create:
– Roadmap and Best-practice process documentation
– Project and program governance
– Training and implementation support
– 3G/4G product and service development
– Content and context partner strategies
27 Copyright Campaignist, Inc. ®