How a U.S Telecom Company Increased its Revenue by 10% – A Customer Intelligence Case Study by Infiniti Research

Oct 15, 2018

Spilling the Beans on the Importance of Customer Segmentation Models

Today, winning new customers is a herculean task, which is why leading players are focusing on improving their customer segmentation strategy by catering to the end-users needs and demands. However, several organizations are left clueless when it comes to the actual implementation of such strategies. If you’re one among them, Here’s what you should know!

Customer segmentation models are designed to help you win and retain maximum customers for life. It usually leads to a customer returning and buying more from a particular firm. Also, repeat, loyal customers tell other people about their experiences, thereby enhancing brand reach. Whilst the purpose of customer segmentation models is to improve customer satisfaction and loyalty, so often B2B customer segmentation models collect nothing but dust.[spacer height=”10px”]

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Though the process of customer data collection may seem easier than taking action to improve customer satisfaction levels, it is indeed a difficult task. The following customer segmentation models play a key role in leveraging customer loyalty and satisfaction:

  • Customer segmentation based on touchpoint engagement
  • Customer segmentation based on consumer goals
  • Customer segmentation based on purchase patterns

Client’s Background [spacer height=”10px”]

The client- a leading U.S based wireless telecom company.

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The Challenge [spacer height=”10px”]

The wireless telecommunications market is one of the highly competitive and commoditized markets, globally. Also, this market is characterized by low levels of customer satisfaction and negative perceptions of the individual brands operating within it. Not surprisingly, customers are no more loyal toward their wireless telecom service providers, choosing instead to shop the category for the newest, low-cost telecom services whenever their contracts expire.

Furthermore, the telecom company’s competition, which comprised of much larger global players was significantly outspending them in terms of the marketing strategies, making it even more challenging for the client to establish and consistently reinforce its message in the marketplace. To achieve their set marketing goals and objectives the telecom company decided upon collaborating with Infiniti Research to develop a customer segmentation strategy by analyzing the global customer base.[spacer height=”10px”]

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Our Approach [spacer height=”10px”]

In-depth customer segmentation and need analysis were conducted to help the telecom company in developing a customer segmentation strategy based on a combination of factors which included- customer needs, attitudes, purchase patterns, and behaviors. The research uncovered lucrative, under-served customer segments that were seeking far greater flexibility with regard to their offerings and service plans.

Business Impact [spacer height=”10px”]

Following the segmentation and targeting phase of the engagement, a unique and aspirational customer segmentation strategy was created that empowered the telecom company to differentiate its brand from the global competition. This, in turn, helped the telecom company to break through the cluttered market space with a unique and convincing proposition.

The implementation of the new strategy also increased the telecom company’s revenue by 10% in the first quarter. Today, the telecom company has surpassed the global competition by successfully capturing a top spot in the global market space by enhancing both customer satisfaction and customer retention levels.

Looking at developing a similar strategy? If you’re wondering where to start. We’re here to help.

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