Case Study: Customer Analytics for Telco Customer Churn Reduction

This case study delves into customer analytics within a Telco company experiencing customer churn. It begins with data analysis, utilizing primary and secondary data to understand customer behavior. The study then segments customers based on various factors like internet and phone service usage, device protection, and online security to identify target groups. RFM analysis is employed to rank and group customers based on recency, frequency, and monetary value. Recommendations are provided for improving customer retention, emphasizing the importance of understanding customer preferences through continuous research and development. The statement of intent focuses on targeting customers aged 18-45, leveraging attractive offers and superior service to enhance customer loyalty and increase sales. The study concludes that customer analysis is crucial for smooth business operations and effective targeting strategies.

Customer Analytics
Case Study

Contents

INTRODUCTION...........................................................................................................................1
MAIN BODY..................................................................................................................................1
Data Analysis...............................................................................................................................1
Customer Segmentation...............................................................................................................2
Target Segment............................................................................................................................2
Recommendation.........................................................................................................................2
Statement of Intent.......................................................................................................................3
CONCLUSION................................................................................................................................4
REFERENCES................................................................................................................................5

INTRODUCTION
The customer analytics is the use of data which need to understand the composition of the
needs and satisfaction of the customers (Adams, 2022). This also enables the technology
segment which is used by the buyers into different group based like the trends, Age, Income
level and behaviour of employees which is also help in developed the targeted marketing and
sales activities.
This report is based on Telco Customer Churn which are doing network services these
things are done according to their IBM sheet in which several things are includes which are
Gender, Phone services, Internet Services, Online security etc. This report includes data analysis,
customer segmentation and Target Segment. Further, it also includes the Recommendation and
Statement of intent in the report.
MAIN BODY
Data Analysis
Data analysis is the procedure that gives direction for the purpose of analysing, inspecting,
and measuring raw data. It is a roadmap that aids in the analysing and organisation of all the
collected data in a correct manner (AKBURAK, Şenvar and Yel, 2019). Data analysis has the
aim and objective to fulfil in achievement of all predetermined goals in valid and reliable
method. In this Telco Company collect the data of their customer on different basis like do
Primary data, Secondary data. This help management company to get the right details of each
customers and they also become to know the problem which is faced by customer through
feedback.
 Primary Data: The primary data is used by the management of Telco organization to get
the right and correct information and management have to meet face to face with the
customers.
 Secondary Data: The secondary data is used to get an overview about the percentage of
the customer who is using their network it may be wrong or right (Bonacchi and Perego,
2019). This cannot be confirming that it is totally right.
This becomes easy for management after collecting the data that whom they have to target
their customers in the market which become to attract the customer attentions and they easily
influence their target customers.
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Customer Segmentation
The management have to divide their customer into different segmentation which is
based on different characters like on the basis of Gender, Age, Financial income, etc. this all
factors is considered by management when they are doing segmentation of the customers
(Dogan, Oztaysi and Fernandez-Llatas, 2020). The management of Telco Company divide the
customer segmentation on the basis of Internet services, Phone services, Device protection and
online security. These will help management to know about the different type of customers
which are analysed by the customers to target their customers in the market. Then management
prepare the strategies according to different customer segmentation which help them to capture
the customer in the market (Hossain, Akter and Yanamandram, 2020). If they don’t prepare
strategies effectively then they have to face problem to capture the customer interest in the
market and they don’t able to sale the products in the market.
Target Segment
The target a segment is refers to the group of potential of customers to identify the sell
products or their services. Each group is divided into various small groups which become easy
for the management to know about the customer preferences. This is very important for the
organization of Telco Company to target their customer on the basis of RFM analysis that it is
techniques which is used for the management to rank their customer and grouped their customers
on the basis on the recency, monetary and frequency (Hudson, 2022). RFM analysis is the way
to use the data base to analyse the best clients on the basis of nature of spending habits. The
Telco Company used the customer segmentation to target the customers in the market on the
basis of many different activities which is used by the organization to generate revenue. The
customer Life Time Value is the business metric that is used to measure the business and how
much the business can plan to earn the average customers for this relationship. These differences
in products, costs, purchase time period and purchase volumes which make customer life time
value more complex.
Recommendation
It has been recommended that customer analysis is very important for the business
because it help management to know about their customer behaviour which helps them to know
the interest of the customers in the market. This customer analysis is very important for the
management to know about that which customer is have well in the business in market and how
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it help them to increase the sales of the product. The Telco Company need to analyse the
customer preference, so that they know about their taste and preferences and this easily satisfies
their needs and wants of their customers. This can help management to sustain their customer for
long term in market (Sachin Kumar and Aithal, 2020). This makes their customer loyalty
towards the brands products. The management need to do regular research and development
analysis which help management to analysis the change factors which is necessary for
management to know the change of the taste and preference. The organization also adopts these
changes in their business so that they easily sustain their customers for long term and they satisfy
their needs and wants of the customers. This can help management to generate profits and they
can sustain their clients for long term in market as well as they can gain competitive advantage in
the market. This can help the enterprise to grow and developed in the market. If management
don’t do the changes according to the change in the customer taste and preferences then they
have to face many problems in the future in the market. They also do not have potential to satisfy
their customer needs and wants of customer, so they can also not able to generate profits and
they also not able to survive for long term in the market because they don’t have potential to beat
their competitors in the market.
Statement of Intent
In this analysis, the target customer is between the age of 18 to 45 years people because they
are very much use the network so, it become easy for me to capture the customer in the market.
This age group of people deal with network on the daily basis in their professional life as well as
personal life. The management have to prepare the effective strategies which can easily influence
the customer in the market (Shaeeali, Mohamed and Mutalib, 2020). The Telco Company have
to make attractive offers in the network in which customer get extra benefits if they purchase
network from Telco Company like they get extra discount and free services and quick resolution
of any problem within 24 hours these all things easily attract customer attention in the market
and they can easily increase their sales in the market. If customers use these services while using
the network from other network operators then have to pay for this and which becomes very
costly for the customers. If customer use Telco Company network then they save money and
they get many more benefits.
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CONCLUSION
It is concluded from this above report that for the company customer analysis is very
important which help them to run their business process smoothly. The customer analysis helps
to target their customer on different basis so that it becomes easy to target in the market
accordingly. Then management have to target their customer easily on the basis of different
segmentation. This help management to increase the sales of the products in the market and it
directly impact on the business process.
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REFERENCES
Books and Journals:
Adams, D., 2022. Virtual Retail in the Metaverse: Customer Behavior Analytics, Extended
Reality Technologies, and Immersive Visualization Systems. Linguistic & Philosophical
Investigations.
AKBURAK, D., Şenvar, Ö. and Yel, N., 2019. Anticipation for Customer Analytics.
Bonacchi, M. and Perego, P., 2019. Customer analytics: definitions, measurement and models.
In Customer Accounting (pp. 13-35). Springer, Cham.
Dogan, O., Oztaysi, B. and Fernandez-Llatas, C., 2020. Process-Centric Customer Analytics:
Understanding Visit Purposes of Predicted Age Groups with Discovered Paths. Journal
of Multiple-Valued Logic & Soft Computing, 35.
Hossain, M.A., Akter, S. and Yanamandram, V., 2020. Revisiting customer analytics capability
for data-driven retailing. Journal of Retailing and Consumer Services, 56, p.102187.
Hudson, J., 2022. Virtual Immersive Shopping Experiences in Metaverse Environments:
Predictive Customer Analytics, Data Visualization Algorithms, and Smart Retailing
Technologies. Linguistic & Philosophical Investigations.
Sachin Kumar, S. and Aithal, P.S., 2020. A Study on Customer Analytics Initiative (WCAI) and
its Impact on the Brand of Wharton Business School. International Journal of Case
Studies in Business, IT, and Education (IJCSBE), 4(2), pp.98-109.
Shaeeali, N.S., Mohamed, A. and Mutalib, S., 2020. Customer reviews analytics on food
delivery services in social media: A review. IAES International Journal of Artificial
Intelligence, 9(4), p.691.
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