Customer lifetime management planning

The problem

One of the largest telecoms groups in Africa was facing profitability issues, with declining ARPU and increasing churn rates. It had no 'big data' analytics capabilities in place, so was forced to adopt an almost blindfolded approach towards the market challenges.

In some cases, initiatives that were destructive to value were launched repeatedly because of the lack of customer base knowledge and impact assessment methodologies.

The solution

A full 'big data' analytics implementation was required, which encompassed customer base scan and data warehouse implementation.

At a very early stage, Analysys Mason was able to use the operators' established data infrastructure to develop a comprehensive customer base scan, providing a wide understanding of the customer base.

We supported the data warehouse implementation, defining the commercial requirements for reporting and data structures. We also project-managed the different vendors required for the implementation of the data warehouse.

We defined a customer lifetime management plan and supported the launch of the pilot campaigns required for the full-scale launch of the plan.

The result

The understanding of the customer base allowed operators in different countries to launch initiatives to address their specific challenges. These initiatives touched different areas, such as dealer fraud, handset strategy, 3G take-up and network roll-out.

A full value-based dashboard was implemented and automated across the group, supporting the direct comparison of value KPIs and an understanding of its evolution.

A customer lifetime management plan was developed and implemented together with the local team, which reduced churn rates by 5–10% and permanently increased ARPU by 1–5%.