Optimising the Customer Lifetime Value for Telecom Operators

As we move into 2020’s, most telecoms markets around the world have been categorised as ‘mature’, with over 100% subscriber penetration and broadband networks providing extensive geographical coverage in many countries. Along with market maturity, operators and service providers are experiencing stagnating revenues and falling profitability, leading to a thorough review of future growth opportunities to satisfy stakeholders’ value requirements.

One area where service providers have a huge opportunity to grow is by maximising the value of their existing customer base. This does not necessarily just mean selling more products or services to the same high value customers to prevent them from leaving the network or engaging in short-term churn management activities. A more holistic approach to managing the value of all customers as long-term assets to the service provider organisations is required if the full lifetime potential of the most valuable elements of the customer base is to be realised.

The total value of the customer base is affected by a wide range of factors, including the quality of the network itself, the range and suitability of services running on that network, and identifying the proportion of  profitable  customers vs. unprofitable customers using those services, as well as identifying non- network sources of value, such as  realising the immense value of customer big data to third parties, managing customer-related costs, and spreading customer risk  across   different ecosystem partners.

The time to act is now: service providers that do not fully master the techniques of customer value management will lose out to competitors that better understand the underlying growth potential of their customer base in a more holistic manner

By the end of the course, participants will be able to:

• Clearly define the complex concept of customer value management and the implications for managing telecoms customers
• Apply different techniques for quantifying current and predictive customer value in the short– and long- term
• Clearly identify the factors that influence the customer value calculation in different parts of the telecoms organisation
• Identify those customers who represent the greatest opportunity to generate long-term value to their organisations
• Assess ways in which their organisations can influence those customers’ perceptions of the value delivered by telecoms service providers
• Apply a range of tools to enable greater retention of customers that represent the future value base of the organisation
• Calculate the impact of different customer management techniques on customer value in the short– and long- term
• Identify ways in which the quality of the customer base can be improved to generate profitable value in the longer term
• Identify new ways to generate value from making non-telecoms products available to telecoms customers
• Improve return on customer investment
• Activity - Building your CVM Implementation Canvas

Session 1 Defining Customer Value Management.

• Summary of Key Trends overview and context
• Definition and role of CVM
• The role of CVM in Telecoms
• Value creation and capture
• The concept of the Value Proposition and what influences it.
• The components of CVM
• What can CVM potentially tell us
• CVM - art or/and  science?
• Customer Lifetime Value, CLV.
• Activity - Building your CVM Implementation Canvas

Session 2 What influences the Customer Value

• What affects CLV
• CVM and Customer Service
• CLV and the customer journey
• Delivering customer value: An Enterprise wide approach
• A workable CVM Framework
• Income vs. costs to serve
• Customer lifetime value and churn risk analysis
• Short-term vs. long-term value
• Current vs. predictive value
• Activity - Building your CVM Implementation Canvas

Session 3 Improving the quality of the customer base

• Identifying angels and demons
• Choosing who to target
• Categorizing customers by value
• Retiring non-profitable customers

Session 4 Analytics: the core of CVM

• The power of analytics: use case Turkcell
• Why you need analytics
• Understanding the different types of analytics
• Modelling techniques
• Real time behavioural analytics
• The big data opportunity in CVM
• Using internal customer data
• Third party big data applications
• Churn propensity modelling
• Analysing ‘at risk’ customers: survival function
• The role of social network analysis in CVM
• Activity - Building your CVM Implementation Canvas

Session 5 The role of segmentation in CVM

• Traditional telecoms segmentation approaches
• Basis of segmentation
• How does segmentation contribute to CVM?
• Attitudinal/behavioral segmentation – B2C and B2C
• Static and dynamic micro-segmentation
• Capturing & Converting Multi-SIM Users
• RFM Based Segmentation
• Psychographics Segmentation

Session 6 Enhancing the Customer Value: CVM Techniques

• Capturing and Converting Multi SIM Users
• Loyalty schemes and CVM
• Alternatives to discounting
• Encouraging longevity in the customer base
• Looking at NPTB tactics
• The potential of personalization
• Uplift modelling
• Bundling optimization
• WOM as a source of referral
• Real time network touchpoint optimisation
• The value of partnerships to increase value
• Activity - Building your CVM Implementation Canvas

Session 7 Thoughts on Implementation

• Campaign testing and optimisation
• Organisational buy-in
• Critical success factors for CVM implementation

Session 8 Influencing customer Value Retention - profitable churn prediction and management, profitable lifecycle management

• Improving revenue - inbound and outbound revenue optimisation, purchase frequency, up– and cross- sell of telecoms  services,  address ing customer satisfaction drivers, micro-segmentation, real-time campaigns, customer engagement
• Rewards - role of loyalty programmes, segmented loyalty benefits, ROI on rewards programmes

Managing Customer Costs

• Reducing costs to serve
• Improving ROI on customer-facing costs

Improving the Quality of the Customer Base

• The value shift: from the network to the services
• Telecoms vs. third party brand value to customers
• Device and applications value to telecoms customers
• Generating value from digital services
• Generating value through third-party affiliation

All the above modules are highly interactive, and each module builds on the previous one. There is a CLV activity running through each of the sessions based on a fictious customer. The learning is also consolidated by the use of “canvas takeaways” whereby the delegates can apply the learning to their own work environment and in doing so maximize the value of the training event.