With competition in the Indian telecom industry being very intense, brands need to constantly ensure that their existing customers are retained and not lost to competitors. Xerago's client wanted a solution to minimize churn. With Customer Value Maximization, they enjoyed a significant reduction in attrition. Here's how.

1. Customer Value Maximization for an Indian Telecom
giant
A Xerago Case study

2. 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.

3. The Goal
Minimize customer churn

4. The Scenario
Outcomes
Tactical Operations
TVC/Print/OOH
Search
Display media
R
E
S
U
L
T
I
N
G
Poor usage
High churn
I
N
Poor response
SMS

5. Customer Value Maximization Approach
In order to achieve client’s goal, Xerago deployed its proprietary Customer Value Maximization
framework, which involved the following 3 stages:
1
MEASURE
2
MANAGE
3
MAXIMIZE
Through objective measures, a
Based on the current state and
This was the high value growth
snapshot of client’s marketing
desired end state, the road-map
phase where all possible marketing
effectiveness on many levels and
which involved a re-architecture of
variable combinations are tweaked
dimensions was constructed and
strategy and re-alignment of
on a concurrent basis to produce
this helped us objectively
resources was developed and
the optimal spend to impact
demonstrate the effectiveness of the
interventions were made to
outcomes. Learning was constantly
client’s current marketing programs.
catalyze the marketing growth
updated for ongoing maximization.
engine.
By making interventions on,
Process
Technology

6. The Measure phase
Parameters X-rayed
Evaluation Results
• Poor offer mechanism
Technology and process
• Low talker, Low SMS segment was churning
• Inappropriate usage of collected data
Marketing programs
Segments

7. The Manage phase – Activities & Areas Impacted
Process Overhauls:
This involved tweaking of offer mapping process and data capture process
Teams Impacted
Technology Interventions
Propensity, churn models & response learning system

8. The Manage Phase – Teams Impacted
Usage and retention
IT and analytics reporting
T
E
A
M
S
I
M
P
A
C
T
E
D
Product

9. 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.

10. Thanks
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.
Want to maximize customer value from
your customers?
GET IN TOUCH
Marketing@xerago.com
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.
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.