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
- Outlining the challenges of the diverse market segments
- Synergising the churn models and strategies for the right customer
- 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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More Detail on Telco BI Strategy, Program & Technology
Telco BI Solutions Index | Strategic
Performance Management | Campaign Management
| Cross Sell / Up Sell | Profitability
| Customer Management | Customer
Segmentation | Customer Profitability
| Customer Retention | Call
Accounting | Payment Risk Management
| Price_Plan Optimisation | Revenue
Assurance | Order Management System
| Least Cost Routing