Customer Segmentation for Telecommunications

Before a Telco can effectively target marketing campaigns or assure customer profitability, it must have the capability to classify their customer base according to their likely behavior and potential profitability. This is vital to understanding the customers, and why high customer churn and declining brand loyalty continue to erode profit margins.

Customer Segmentation Framework

A typical customer segmentation framework supports:

• Consolidating and analysing customer data efficiently from different touch points
• Outlining the challenges of the diverse market segments
• Synergising the churn models and strategies for the right customer segments
• Making your customers value your reward program
• Prosumer [professional consumer] customer relationship programme and impact on the bottomline
• Cash Back Reward Concepts
• Measuring and tracking anti-churn programmes

Many telecommunications providers struggle to segment their customers effectively, often because they have difficulty sorting through the huge volumes of customer data that exist throughout the enterprise.

Customer Segmentation Solutions

A typical customer segmentation solution provides:

• A segmentation analytical data and process model
• Billed call behavior analysis and reporting
• Unbilled call behavior analysis and reporting
• Customer and product analysis and reporting

The segmentation analytical data and process model analyses billing patterns, credit risk scores, loyalty, profitability, length of time as customer, and other key factors based on the services provided. Segments indicated by the model extend far beyond normal demographic segmentation used today, to include a range of profitability designations, as well as predictions of future profitability.

SAS Customer Segmentation for Telecommunications

SAS Customer Segmentation for Telecommunications provides a pre-built, customizable segmentation model that gives marketers the ability to create more accurate customer segments and predict customer behavior.

This in turn gives organizations the power to create better-targeted product offers, product communications and bundled services.

A key strength of the SAS solution are the ready-to-deploy analytical and process models specifically designed to speed up implementation and deliver ROI more rapidly.

Next: Customer Profitability

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