Recommended revenue-driving measures from your onsite data

by Data Analyst Julian Stegmann


In the telecommunications industry, the competitive landscape has changed dramatically over the last 10 years. Even the last 10 months.

Telecommunication businesses all around the world are passing through a fast-changing phase due to customer behavior and technological evolution. Simultaneously, the telecommunication sector is facing one of the most difficult times ever, as revenues are declining and competition is extraordinarily high.

The recession of revenue in the total market is related to three main causes:

•    sinking consumer prices
•    decline of voice and text-message usage
•    increasing focus of the business client segment

Change in usage

Since almost everyone is connected to the internet and is using it for private and professional reasons, the telecommunication sector is experiencing a huge change in the usage of its products.

IP and OTT services are sprouting and enjoying great popularity; the usage of Short Message Service decreased about 37% from 2014 to 2015 because of internet-based messaging service like WhatsApp, iMessage and Facebook Messenger.

Furthermore, OTT-based phone applications like Skype and Facetime are also increasing by about 7,9% annually, according to Germany's Association of Telecommunications and Value-Added Service Providers (VATM).

Resulting out of this transition in telecommunication business is the constant growth of data usage, which will surely increase in the coming years.

In the course of this transition, it is indispensable to mention that connecting all products with each other and accomplishing synergy effects and advantages for customers is highly important to increase the potential for upselling and cross-selling.

In light of the transition of users’ behaviour in usage and consequent declination of revenues, it is very important to increase consumer loyalty.

Active competition

Extraordinarily high competition has forced companies to widen their product and service portfolios and revise their price structure.

As a result, loyalty is the most relevant attributes operators have to fight for.

There are many other factors that influence consumers to change their telecommunication provider, for sure.

In this context, existing customers are mostly at a disadvantage because the procedure to acquire new customers is influenced by incentives like bonuses for changing providers or even high quality product incentives like a free tablet. These incentives cause customers to switch on a regular.

Many experts point out that companies forget about their existing customers who are stuck in unattractive contracts/deals, and have to see advertisements where new customers are addressed with same contract conditions for less money or extra incentives.

Another downside is that existing customers are paying more money without receiving any benefit, and sponsor the expensive marketing campaigns for non-customers. Oftentimes the disadvantages of existing customers also affect the customer service, so that existing customer obtain worse support by talking to a “B team” on the phone on the grounds that those customers already signed the contract.

Every customer counts

Because of the competition and change in usage of telecommunication products, it is highly important to take care of every single customer as an individual.

In this context, customer experience management becomes more important than ever before.

Within a company, there are several separate departments which also have different structures and procedures for how to deal with a lead or customer. Mostly those departments have separate systems, and the handover process to proceed from one department to the other is not clearly defined and optimized.

Often this makes it hard to provide a personalized and individual customer experience for every single customer.

In many cases, an individual and satisfying customer experience affects the brand loyalty and brand relationship.

Therefore, it is recommended to enrich your web analytics data with 2nd party data from your CRM or ERPS, as well as 3rd party data such as sociodemographic data, to achieve a high quality data set which gives you the possibility to avoid inconvenient advertisings to users or customers who are not interested or already have bought the product.

“If you are customer-centric and provide value, keep your customers happy and anticipate their future needs, you will thrive. If you can´t do that, you will become a dump, wholesale connectivity provider.”(Extracted from: Global telecommunications study: navigating the road to 2020. p. 18)


DMP – data accumulation

The collection of data is the first step. But collection of data is useless if the data is not put to good use. To do that, the management, enrichment and activation of data must take place.
For that you can use a Data Management Platform, or DMP. 

Collect all data in one place. Enrich the collected data with data from your CRM or ERP systems, and with that have even more information about your users when targeting them. Analyze and segment the user data, then provide your online marketing channels with these segments to optimize these channels.
And what makes a huge difference is that you can do it instantly. With most DMPs, you can provide your retargeting tools with data a few times a day, which can be already too late to convince a customer that has been looking for a new contract or a new device. Doing it real-time has big advantages.

In particular, when a customer plans to terminate, is it supremely important to react in real-time to achieve the best possible goal by preventing the cancellation.

A further benefit to obtain the desired action/move of the customer is the above-mentioned cross-device identification, so that you have all the information about a single customer even if he is using multiple devices.

Identification of the consumers favourite channels

Most consumers start with their research about products or contracts on their computers and mobile devices before they finally make a purchase, either in a retail store or online.

This indicates the requirement to consolidate all channels in order to boost the customer experience and surely to generate sales.

Consumers interact with advertisings/offers on various devices and various channels differently. It is vital to identify each consumer’s favorite channel.

The favorite channel is measured by identifying which one has the highest interaction rate or engagement rate. Another opportunity is to score the best-performing channel on the basis of costs and generated revenue – in other words, ROI.

To determine which channel will have the biggest impact in the form of increasing revenues, it is possible to use predictions on the customer lifetime value and lifetime behaviour of a user.
This will be useful to come to a decision to deploy your budget in a more targeted manner.

This knowledge helps to increase the engagement of marketing campaigns and additionally to reduce marketing costs.

Newsletter signup: Encourage users who are leaving to sign up for your newsletter

Once the user is on the homepage and interacts with your products, it is recommended to generate as many touchpoints as possible – for example, a newsletter subscription or social media engagement – to have the chance to target her afterwards with personalized offers or actions.

To avoid annoying your users, it is recommended to display the newsletter layer only to users who are not already registered for the newsletter.

To boost the subscription rate for the newsletter, you can provide monetary incentives by doing a competition/contest or tender a special offer which is only available if you register for the newsletter.

Contract extension  Offer to users whose contract expires in X months

As the competition among the providers continues to increase, high quality and seamless services becomes the decisive factor to retain the consumers.

Customers whose contract expires in the next couple of months have two options – to remain or not to remain. 

To make the customer as happy as possible and retain them as a client, you can offer a personalized contract extension based on their actual usage for a fair price.
Therefore, multiple placements are imaginable.

For example, to display a layer in the login area on the homepage with simple funnel to extend the contract right away. Not all of the customers are using the login on a regular basis. Therefore, sending a personalized newsletter is also an option.

Avoid cancellation: Target user who visit Terms & Conditions page

The reasons for contract cancellations vary from customer to customer and could be anything from lower price offers by competitors to bad network quality – just to mention a few.

In these instances, people are poised to cancel their contract and inform themselves about cancellation conditions and deadlines by checking the Terms & Conditions page or calling the customer support.

When a customer is contemplating termination, it’s important to identify the reason which can be solved by showing a survey layer on the page if the user wants to leave the homepage.

This might help to treat those customers in a special, personalized way to avoid cancellations and of course to address the customers with the correct message for future campaigns.

Upsell and cross-sell

Upselling and cross-selling have emerged as key components to retaining customers and offsetting declining revenues.

Therefore a high and satisfying data quality is vital for improving upselling and cross-selling actions by offering users convenient, relevant products or offers.

Furthermore, frequency caps can ensure that ads are only displayed a specific quantity of times to a single user, which is vital for not disturbing the customer experience and reducing unnecessary costs.

A supplementary way to recommend convenient products is via newsletters, letters (direct marketing) or a personal call.


There are many different approaches to improving the performance of your business.

These approaches enable you to get more and more accurate data to personalize the customer experience at any stage of their customer journey, starting right from the beginning.

The most relevant approaches for the telecommunication sector are targeting user in real-time on the homepage and in the form of retargeting on several channels.

Last but not least, is it extremely relevant to know as much as possible about users in general and cater to their interests, preferences and behaviors to reduce marketing spend.


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