Mobile Tariff Transfers - More Good Ones; Fewer Bad Ones

The client was a major mobile operator with a diverse range of customer tariffs and a strategy to increase numbers on a subset of these.

Our client operator been very successful in attracting new customers to the strategic tariffs. In addition, it had been actively campaigning to the existing customer base to encourage them to transfer.

Now we wanted to know whether this active campaigning was good business. In other words: were we making any money from this strategy?

Our Cartesian and TMNG team rapidly built a model to calculate how profitability was affected by tariff transfer, and demonstrated that certain types of transfers were good business, and others were not. Campaigning to the customers was adjusted accordingly and an estimated ROI of 400% was achieved in that financial year, with further savings ongoing.

Cartesian and TMNG’s expertise at both modelling and data processing as well as our in depth knowledge of all aspects of the telecoms marketplace means that the time from opportunity to ROI can be very short. We were able to bring a wealth of experience to this compact project, with key characteristics of the work being as follows:

• Simultaneous consideration of all relevant factors including
  • margin dilution
  • long term survival
  • immediate apparent churn risk
  • SAC
• Effective segmentation of the pool of target customers
• Ability to calculate comparative profitability over any chosen time period
• Convincing delivery of the conclusions reached by the work
• Supporting the operational team in selecting customers for campaigns using the new rules

For more information on Cartesian and TMNG’s capabilities in information management, and our ability to revolutionise return on your investment, contact us today.

This entry was posted on Tuesday, March 30th, 2010 at 9:06 am and is filed under Case Studies.