Market Segmentation Assists a Prominent Network Services Provider to Profile the Most Ideal Customers

January 10, 2018

The revenue generated from telecom services is expected to reach 1.2 trillion Euros by 2019.

Over the years, the global telecommunication industry has witnessed promising growth due to the advent of cheaper technologies and innovations. It has also been noted that with the growing concern for reliable and seamless communications, the stakeholders in the industry are investing highly on skilled personnel to meet the demands of the target audience. The Asia-pacific region is estimated to witness a profitable growth, accounting for 373 billion Euros. Along with the key factors, additional trends such as advances in technology, intense market competition, and high investments like wireless communication and satellite are expected to sustain the growth of the market over the coming years. Although the telecommunication space is witnessing a gradual growth due to the considerable adoption of internet among the end-users, several factors may influence the growth of the industry. These factors include:

  • Competition from OTT services: In the seamless and mobile environment, over-the-top services (OTT services) such as mobile messaging and chat apps are witnessing exponential growth. With the changing preferences, consumers are shifting their preferences toward these third-party applications, owing to their agility and the services they render. With these apps gaining widespread popularity, text messaging services have been dwindling downwards with a radical decline in the usage of these apps.
  • Privacy and security issues: Telecom services comprise of a large repository of data and sensitive information which is vulnerable to threats. So, it becomes essential for the network services providers to maintain regulations to secure the user data. Moreover, to maintain large repositories of data, organizations have to rely on third-party applications.
  • Growth in IoT: Latest innovations such as IoT is paving the way for more connected devices into the existing network services architecture. As the integration of IoT services relies on the higher level of connectivity and data flow, leading organizations are the need to develop a functional platform that can robustly support such applications.

To address such challenges and profile the most suitable customer segments, leading organizations are utilizing market segmentation solutions. Market segmentation is a technique of using market research to learn all about the customers and sell products and services to the right target audiences. The market segmentation solution also aims at differentiating the customers based on their service offerings and brand affinity.IR_Brochure

The Business Challenge

  • The client: Telecommunication services provider
  • Area of engagement: Market segmentation

The client, a renowned network services provider, wanted to differentiate the customers based on their attributes and profile the most profitable segments to focus on their service offerings. The client wanted to explore and analyze the characteristics of the customers and refine their marketing models to accurately meet the business requirements. With the help of a market segmentation strategy, the client wanted to tailor their offerings to different groups to precisely meet the needs of the customers. The primary concern for the client was to implement a segmentation strategy to deliver service offerings for each segment and direct their investment to gain insights on potential sales volume.

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Our Journey

To address the specific needs of the target segments, the market segmentation experts at Infiniti followed an extensive research methodology. The methodology comprised of interviews and discussions with prominent stakeholders in the network services space. To efficiently align their product resources, the experts also compiled information across a wide array of secondary sources such as trade shows, government bodies, and paid industry databases.

Solution Benefits and Business Impact for the Netword Services Provider

The market segmentation solution offered by Infiniti helped the network services provider find groups with different preferences and offer services that target these different groups. The client was able to meet the customer ‘s preferences and refine their marketing models to meet the target preferences. The network services provider was also able to deliver customized service offerings and meet the needs of each target segment. Moreover, the solution offered also helped engage the target customers with advertisements and media to reach out to the niche and profitable audiences.

The Future

The telecommunication industry is witnessing changes at a breakneck speed, and renowned network services providers have expanded their service portfolios to meet the explosive demand. Despite the slowdown, the future of the telecom industry will be marked by innovations in the form of advanced wearables such as virtual reality and smartwatches. Also, significant opportunities for mergers and acquisitions will trigger the expansion of network services across the globe.

A must-read case study for strategy specialists and decision makers looking to develop an understanding of the telecommunication industry


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