Telecommunication companies can lower churn from their existing customer base through PACE Performance social networks analysis

1. Churn Down Now!
Social Network Analysis from PACE Performance Group and Frontline Associates
Provides Fast Insight with 90% Churn Predictive Accuracy
Social Networks Analysis Highlights
• Proven customer churn reduction
• 90% customer churn predictive accuracy
• Quick 6-week drive to active insight delivery
• Profitable up-selling and fraud reduction
CHURN! CHURN! CHURN!
Wireless churn is driving cellular carriers crazy. Monthly revolving charges hovering around the
$50 mark and the high cost of acquiring a new customer means by far the largest and most
valuable revenue growth opportunities are to be found within a carrier’s own customer base. But
the tools available to providers to actively defend their base customers are limited, costly and
slow to implement. Carriers need to drive down churn now! Social Network Analysis from
PACE Performance and Frontline Associates provides the quick, accurate and cost-effective
solution needed.
FAST DELIVERABLES
Too often wireless carriers fall into the common pitfall of a 6-month planning process followed
by a 6-month rollout. The key to acting on churn NOW is to accelerate the churn reduction
application deployment time. Armed with the essential foundations of Social Network analysis,
PACE and Frontline Associates agile processes drive speed to market with a deployment in just
6 weeks from start to actionable data. Rapid planning, fast IT link up and speedy data delivery
provide the competitive edge.
DELIVERING 90% PREDICTIVE ACCURACY
Social Network Analysis (SNA) provides a 90% predictive accuracy for future churn. It succeeds
by looking deeper at calling and
texting patterns than those provided
by viewing a typical cleansed calling
circle. SNA not only zeroes in on the
people a single Cellular Telephone
Number (CTN) has called, but pulls in
all the CTNs they have called. For
example, say Peter calls Andrea who
then calls Sarah who then calls Mark.
Social Networks Analysis identifies
different types of players within these
calling connections & treats them
differently within a segmentation
model: Bridges connect 2 or more networks together; Queen Bees act as a network center;
Overlords link the most callers; Punes are network dead ends.

2. CATCHING CUSTOMERS BEFORE THEY LEAVE
A number of Key Performance Indicators are then attached by segment that provide an early
churn warning for a customer - when they show ‘red’ (danger zone), it yields a 90% likelihood of
churn and the customer account is flagged for attention. A carrier can take action at this moment,
when a churn potential has been identified but before the customer has left. In this way, proactive
carrier offers, programs and communications can reach the customer with high potential for
receptiveness.
UP-SELLING INSIGHT AND FRAUD REDUCTION
Social Network Analysis also leads to profitable up-selling opportunities. Truly understanding a
person’s place within their Social Network drives informed viral campaigns, ongoing retention
strategies, acquisition strategies, and other revenue enhancing opportunities. Social Networks
Analysis has a place outside marketing as well. This insight can be used to detect and prevent
fraud by understanding customer typologies likely to commit fraud and then knowing the
“network(s)” to which a person belongs. Carrier loss can further be minimized by applying
Social Network Analysis to secure billing – knowing the network of handsets (using IMEI data)
that are involved in billing fraud can help predict and therefore minimize losses.
PROVEN TO WORK
One of the leading providers of mobile (3G/4G) and advanced multimedia services in
Western Europe was alarmed at the prepaid portion of its customer base annual churn growing to
more than 10 % with no end in sight. Their analysis of a few factors including product lifecycle,
profitability, and customer purchasing patterns failed to provide the deeper understanding
necessary to keep more customers, especially high-profit customers within the base. This
provider needed insight now!
PACE and Frontline Associates first analyzed call data records (CDRs) using Social Network
Analysis and Calling Circles. This view was further supplemented with cost data and
deactivation data. Key Performance Indicators were developed to measure the existing 6-month
churn for defined regions and products. This insight resulted in prioritized KPI’s and increased
understanding of the customer lifetime value.
Next, Social Network Analysis drove detailed customer segmentation. Using the appropriate
algorithms engaging Neuro Networks, Decision Trees, and Clustering, PACE and Frontline
Associates put into action their proprietary models of behavioral analysis and market knowledge
to create segment-specific churn predictions. They further used Limbic Analysis to optimize the
parameters to the local Market demands and needs. The carrier put this segment level insight into
use right away developing programs that provided their individual customers the right products
in the right time according to the customer lifetime value.
Net result to the carrier included:
• 50% reduction in churn for selected customer segments
• 50% reduction in the time needed to collect data for analysis and report writing
• 300% increase in the service offer success rate, as compared to current rate

3. Social Networks Analysis further strengthened the carrier’s data integration and compatibility
through a data mart now optimized for special customer segments, and reduced time needed for
problem analysis and decision-making by offering a multidimensional system of statistical
analysis. The insight provided by PACE and Frontline Associates increased the client’s
campaign success rate and sales through the efficient selection of targets for campaign and
associated marketing activity. The carrier also benefited by identifying strategies to protect
customer base erosion from discount price competitors.
LOWERING CHURN IN YOUR CUSTOMER BASE
Social Network Analysis has proven to significantly drive down a carrier’s churn. With speed to
market key in the competitive telecommunications space, PACE and Frontline Associates put the
knowledge, tools and resources quickly into carrier’s hands to lower churn. For more
information about Social Network Analysis, PACE Consulting or Frontline Associates, please
contact:
John Ingram, PACE Performance Group