Marketing Support – Up-Selling & Churn Prediction

In today’s extremely competitive business environment, many telecommunications carriers are measuring their success by the size and growth of their profit margins. As a result, carriers are under intense pressure to reduce or eliminate the major threats to these margins that arise from revenue leakage, inaccurate inter-carrier billing, fraud, and churn. As mobile penetration has increased over the years, the focus of marketing at many carriers has shifted from customer acquisition to customer retention. Studies have found that it is much more cost efficient to retain an existing customer than to acquire a new one. Therefore, in order to maintain profitability, carriers must identify ways to control customer churn and increase ARPU with the existing customer base.

The picture below is an example from a recent ‘right sizing’ analysis performed by ATS. In the analysis, ATS found that many customers were paying for a large usage plan without generating much usage, and vice versa. At first glance this may seem like a good thing for the carrier. However, ATS found that month after month many of the customers who were churning actually fell into one of these 2 groups. By ‘right-sizing’ the customer, in other words, ensuring they are in the correct plan according to their average usage, the carrier was able to decrease churn rates and improve customer satisfaction.

ATS has developed a powerful predictive analytics package that can be used for everything from creating target lists of customers for a marketing campaign to identifying those customers at a increased risk of churning.  Here are just a few examples of potential applications for ATS’ cutting edge analytics modules.

• Churn Prediction and Management
• Identification of Target Customers for Up-Selling Marketing Campaigns
• “Right Sizing” Customer Usage Plans
• Identification of ‘Negative Margin’ Customers