Real-time Targeted Marketing Offers Reduce Churn for Telecommunications Companies

The client is a software infrastructure provider that specializes in providing services for telecommunications companies. The company helps to manage several major operators in developing countries. Many of these mobile operators are now facing entirely new sets of challenges that previously have only affected service providers in more developed regions.

According to the GSM Association (GSMA), global ARPUs (Average Revenue per User) between 2001 and 2011 fell by 80% as a result of increased competition and the introduction of low tariffs to attract low income users. These low income customers use prepaid services from different operators to benefit from the best offers and discounts. Some offers, for example, provide strong discounts of up to 95% when the customer is in a specific zone. It is relatively easy for these customers to change operators, leading to very high churn rates – of up to 80%.

Faced with this challenge, one of the software infrastructure provider’s clients wanted better real-time information on their customers, especially regarding their location. This would allow them to send real-time targeted marketing offers to reduce churn.