strategies for survival in telecom\'s perfect storm

$: Strategies For Survival in Telecom\'s Perfect Storm$
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


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


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;


• 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


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


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.


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.


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



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



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.


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)


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


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);


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


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


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”


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


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

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

09:00-10:00

10:00-11:00

11:00-12:00

12:00-13:00

13:00-14:00

14:00-15:00

15:00-16:00

16:00-17:00

17:00-18:00

18:00-19:00

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

03:00-04:00

04:00-05:00

05:00-06:00

06:00-07:00

07:00-08:00

08:00-09:00

09:00-10:00

10:00-11:00

11:00-12:00

12:00-13:00

13:00-14:00

14:00-15:00

15:00-16:00

16:00-17:00

17:00-18:00

18:00-19:00

19:00-20:00

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

Home Work

Usage: Low/No Medium High


BTS = local cell transmitter

Survival Strategies for Telecom’s Perfect Storm Daily mobility patterns identify type of user (home/work)



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

09:00-10:00

10:00-11:00

11:00-12:00

12:00-13:00

13:00-14:00

14:00-15:00

15:00-16:00

16:00-17:00

17:00-18:00

18:00-19:00

19:00-20:00

20:00-21:00

21:00-22:00

22:00-23:00

23:00-24:00

Before & After Work – Use by BTS

Mon-Fri/Sat by BTS


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

09:00-10:00

10:00-11:00

11:00-12:00

12:00-13:00

13:00-14:00

14:00-15:00

15:00-16:00

16:00-17:00

17:00-18:00

18:00-19:00

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


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

09:00-10:00

10:00-11:00

11:00-12:00

12:00-13:00

13:00-14:00

14:00-15:00

15:00-16:00

16:00-17:00

17:00-18:00

18:00-19:00

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


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

09:00-10:00

10:00-11:00

11:00-12:00

12:00-13:00

13:00-14:00

14:00-15:00

15:00-16:00

16:00-17:00

17:00-18:00

18:00-19:00

19:00-20:00

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



Survival Strategies for Telecom’s Perfect Storm Overlaid type of usage by channel (www, voice, text)



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


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

04:00-05:00

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


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


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



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


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


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



• 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;



• 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
