Analytical CRM Consulting
An important challenge faced by any telco, both emerging and mature, is retention of current customers and winning new customers. For this purpose, optimal planning of products and marketing campaigns is required. Maintaining competitive edge in saturated markets requires proactive operator’s approach with regular marketing surveys.
Analytical CRM consulting empowered by CBOSSdm enables cost-efficient marketing research by leveraging constantly growing data marts. The operator can constantly maintain and improve its competitive edge by promptly answering the main question: “What do our customers need?”
The service is built around the Data Mining paradigm, enabling intelligent analysis and detection of implicit dependencies in the operator's database.
The CRM consulting service involves the following tasks:
- Segment subscriber base by ARPU
- Detect subscribers likely to churn
- Detect implicit dependencies in subscriber behavior, detect subscriber groups based on consumption profiles, and match the groups with the target market segments of the operator
- Analyze the consumer basket to find most demanded service combinations.
Customer base segmentation:
Customer base segmentation classifies subscribers by behavior patterns into groups.
To create the mathematical model, the Subscriber Value Index (SVI) is calculated for each analyzed subscriber. A higher index indicates a higher customer value.
As a result, the customer base is split into the preset number of value segments. Most commonly, three segments are used: high-value, mid-value and low-value. As an option, every value segment can be split into a preset number of ARPU segments.
Detection of consumption profiles:
Consumption profiles are needed to provide a deeper insight into the subscription base structure. This allows planning promotional and loyalty programs as well as optimizing tariff offers.
To build the profiles, Service Profile Indexes are calculated to estimate the value of service groups for each subscriber.
Identification of subscribers likely to churn:
Data mining methods enable detection of implicit dependencies characterizing subscriber propensity to churn. By processing huge volumes of usage data of loyal customers and churners, the data mining algorithm builds a mathematical model to forecast the expected churn.
Such mathematical model yields the list of active users which are likely to churn in the nearest future. Additional data on such subscribers (i.e. value, consumption profile, marketing segments) give the clue on the retention campaign, i.e. customers involved, discounts offered, campaign duration, etc.
The operator gets a unique opportunity to substantially reduce churn using direct marketing communications driven by high forecast precision (up to 80%).
Consumer basket analysis:
Consumer basket analysis identifies services purchased together. This enables cross-sales and discounting models.
CBOSSdm as a marketing instrument:
CRM projects intelligent support system CBOSSdm is an Analytical CRM (ACRM) solution implementing complex data mining methods and providing an easy-to-use marketing tool for subscriber segmentation, detection of consumption profiles, churn probability, and consumer basket analysis. This requires no mathematical background.
This product may be purchased on completion of a full-scale CRM consulting project or independently, when CBOSSdm delivery includes a basic consulting project. This project features basic data analysis, service bundling, segmentation and churn modeling.
The operator will get multiple return on investment in CBOSS CRM solution, through:
- Saving on expensive field surveys, as planning of products, subscriber retention and sales promotion campaigns is based on constantly growing operator’s data marts.
- Enhancing the quality and efficiency of marketing campaigns by scientific business intelligence approach, allowing for correct selection of subscribers for a retention campaign. Even if it concerns a several-hundred thousand subscriber base, every dollar misspent on each subscriber will lead to significant losses.
- Timely detection of dangerous trends, particularly those related to subscriber churn, and prevention of problems before they occur.
- Integration of CBOSSdm and CBOSSbcc, and solution usability.
Consulting on implementing marketing products using CBOSS tools:
As a result of CRM consulting and CBOSSdm use, the operator’s marketing experts obtain the information needed to develop highly demanded product offers and loyalty campaigns etc. To streamline design and launch of new operator's services, we offer Product Development Support. It provides comprehensive consultations on implementing the operator’s business requirements using CBOSS tools.