## Applied Advanced Analytics

### Analytical Marketing for Telecom Operators

### The Mobile Industry has Entered a New, More Challenging Phase

Over the last few years, market conditions have changed. Growth has slowed as markets have become saturated; SIM penetration over 100% has become the norm, and most new adds are in fact churners. An increasing number of players fighting for the market has put pressure on ARPU. Most markets have at least four players, including at least one positioned as “low-cost.” Overall economic situation has damaged consumer sentiment. This may become the “new normal,” further increasing pressure on revenue. History shows that new products and services will provide limited relief. Mobile broadband has become even cheaper than fixed in a number of European markets.

### Operators Need to Identify Market Trends Earlier to Shape Them

These changing market conditions are impacting how operators play in the market. Financial results are showing the strain at even the largest players, and operational results have become critical now as many operators need to service their debt. Assigning short-term financial targets is no longer enough; achieving those targets today is worth little if that means mortgaging the future. To avert threats and exploit opportunities, operators need to embrace best practices. Targeted marketing actions will be a critical part of operators’ toolbox.

### To Properly Assess Performance We Need a Proper Market Understanding

We need to ask “smarter,” forward-looking questions. How concentrated is revenue in the base? How will revenue look like next year? How quickly are you adding to and churning from your top customers? We need continuous answers, in a comparable manner historically and across operations. We need an objective view of both the market and the operator’s actions. An independent auditor provides the objectiveness to provide fair assessments and break the agent-principal conundrum. We must bring to marketing the level of rigor you find in financial audits.

### Current Metrics and Systems Do Not Provide That Level of Understanding

Lack of accurate, actionable information hampers our decisions. ARPU becomes easily distorted with hard-to-measure inflation rates and often hides huge variances between customers. Multi-SIM, disposable SIM, and channel fraud account for more than half the gross adds in many markets, rendering customer base numbers irrelevant. Churn is also meaningless as customers drop extra SIM cards, forcing operators to waste resources chasing ghost churners. A standard framework is a must to provide context to this information, from the portfolio of operations at the top to customer portfolio segments at the bottom. We can no longer drive using the rear mirror!

### A Offers Operators an Optimal Solution to Address These Issues

Our Marketing Audit solution focuses on three key concepts:

1. **Visibility:** Provide an independent, objective assessment of the operation -- a 3rd party audits the agent-principal conflict.

2. **Variability:** We build the link between marketing actions and changes in value. We identify short- and long-term impacts.

3. **Volatility:** We help to identify and quantify the sources of risk. Operators will be able to build synthetic risk profiles for each of their operations.

Our team can partner with operators to deliver a solution with minimal impact on CAPEX or headcount.

### Visibility Variability Volatility

#### Where is My Value? How is it Evolving? What are the Risks?

The first step is to identify the key metrics that are truly relevant to value capture. The customers can be then classified according to their actual usage and recharge patterns, providing the operation with a more actionable approach. Our methodology provides different levels of aggregation to address the needs of different constituencies, but always using a common bottom-up approach that considers customer segments as a portfolio of assets. At each point (marketing, strategy, CxO, board), there is a shared criteria: value.

### Segmented Behaviors Provide an Accurate Description of the Base

### Portfolios Identify the Different Revenue Streams Associated to Them

#### Illustrative Strategic Marketing and Operational Marketing

### The Benefits for Our Customers Can Be Summarized in 5 Main Areas

1. **Financial:** Our solution requires no up-front investment in either hardware nor software, nor integration/consulting.
2. **Time-to-Market:** Our solution will be ready to provide results from day one, with minimal delays and no development time.
3. **Headcount:** Operators do not need to set up a specialist team to provide insights and support the marketing team.
4. **Low-Risk:** Opting for our Value-Driven Analytical Service does not involve a large upfront investment, with our pay-as-you-go model operators have a risk-free solution.
5. **Actionability:** _a3_ provides insights that can be quickly translated into marketing actions, such as our churn predictive models.