Customer Value Maximization for an Indian Telecom giantA Xerago Case study

Assignment Background

The telecom industry in India was dominated by the pre-paid segment with 97%

of youth and a greater than 90% of new users in the pre-paid segment. The

industry was highly competitive with a few players holding lion's share and

there was a fierce competition from new entrants. Hence it was very critical for

the companies to preserve the hard earned subscribers. The client was facing a

huge customer churn in its Gujarat Circle.

The Goal

Minimize customer churn

The Scenario

TVC/Print/OOH

Search

Display media

Poor usage

High churn

Poor response

RESULTING IN

Tactical Operations Outcomes

SMS

Customer Value Maximization Approach

By making interventions on,

Through objective measures, a

snapshot of client’s marketing

effectiveness on many levels and

dimensions was constructed and

this helped us objectively

demonstrate the effectiveness of

the client’s current marketing

programs.

Based on the current state and

desired end state, the road-map

which involved a re-architecture

of strategy and re-alignment of

resources was developed and

interventions were made to

catalyze the marketing growth

engine.

This was the high value growth

phase where all possible marketing

variable combinations are tweaked

on a concurrent basis to produce

the optimal spend to impact

outcomes. Learning was constantly

updated for ongoing maximization.

MEASURE MANAGE MAXIMIZE1 32

In order to achieve client’s goal, Xerago deployed its proprietary Customer Value Maximization framework, which involved the following 3 stages:

Process Technology

The Measure phase

• Poor offer mechanism

• Low talker, Low SMS segment was churning

• Inappropriate usage of collected data

Parameters X-rayed

Technology and process

Evaluation Results

Marketing programs

Segments

The Manage phase – Activities & Areas Impacted

Teams Impacted

Process Overhauls:

This involved tweaking of offer mapping process and data capture process

Technology Interventions

Propensity, churn models & response learning system

The Manage Phase – Teams Impacted

Usage and retention

IT and analytics reporting

Product

TEAMS IMPACTED

The Maximize phase

Xerago setup a concurrent framework to measure the effectiveness of the interventions made to

ensure desired results are delivered. This was achieved by establishing benchmarks for various

interventions and real-time optimization of the efforts. Below are the outcomes.

22% increase in response rate

30% decrease in churn

15% increase in usage

Ongoing churn prediction is happening and appropriate marketing actions are taken to ensure loyalty.

Thanks

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Xerago is a Customer Value Maximization company headquartered in Chennai, India. Ever since inception, Xerago has evolved marketing solutions for clients, using a

combination of Robust Process, Creative Excellence, Cutting edge Technology and Discrete Measurement. Over time Xerago has created IP both tangible and in-tangible

that enables the entity to retain its unique advantage of being among the few entities globally that has stellar depth of consulting with a combination of large scale

marketing outsourcer.

More About the Client:

The client is India's first truly multinational corporation. They are a pan-India

integrated GSM operator offering 2G and 3G services, and have their own NLD

and ILD operations, and ISP license. With revenue in excess of $4 billion;

revenue market share of nearly 15%; and subscriber base of over 121 million in

FY 2013, the client is India’s 3rd largest mobile operator. They rank among the

Top 10 country operators in the world with a traffic of over 1.5 billion minutes a

day.

The client's robust pan-India coverage is built on a network of over 100,000 2G

and 3G cell sites, spread across over 55,000 towns in India.