Using Business Analytics to Improve Customer Lifecycle Management


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Andreas West, Senior Vice President, Customer Management, Celcom Axiata presented at the Premier Business Leadership Series 2010,

West will pull from his experience utilising business analytics to create business value at Vodafone, Accenture, Citibank, and currently, Celcom Axiata, for his discussion. He will discuss how business analytics is a key enabler to build market share, profitability and turn a business around while following the concept of customer lifecycle management. He will also explore how to:
Acquire high value and high loyalty customers.
Get higher cross/upsell results from your customer.
Minimise the number of unprofitable customers.
Predict the future value of a customer.

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Using Business Analytics to Improve Customer Lifecycle Management

  1. 1. Business Analytics Insights Session Using Business Analytics to Improve Customer Lifecycle Management Andreas West Senior Vice President Customer Management Celcom Axiata
  2. 2. TITLE Using Business Analytics to improve Customer Lifecycle Management Andreas West SVP Customer Management g
  3. 3. Celcom has a history of 16 quarters of consecutive revenue growth g REVENUE (RM Mil) SUBSCRIBER (‘000) # an axiata company 10,380  1,699  1,703  10,145  10,142  1,606  9,698  1,544  9,176  1,476  8,761  1,471  1,416  8,254  1,374  7,894  1,348 1,363  7,600  7,571  1,307  7,218  7,394  1,271  1 271 7,202  7,202 1,222 1,231  6,728  1,176  6,404  6,241  1,110  1,051  6,079  Prepaid Registration Q106 Q206 Q306 Q406 Q107 Q207 Q307 Q407 Q108 Q208 Q308 Q408 Q109 Q209 Q309 Q409 Q110 Q106 Q206 Q306 Q406 Q107 Q207 Q307 Q407 Q108 Q208 Q308 Q408 Q109 Q209 Q309 Q409 Q110 EBITDA (RM Mil) ^ PATAMI (RM Mil) ^ 773  441  759  412  716  404  682  357  367  664  664  336  641  321  327  610  614  622  300  310  585  585 563  256  262  542  233  218  519  206  212  500  180  474  477  Q106 Q206 Q306 Q406 Q107 Q207 Q307 Q407 Q108 Q208 Q308 Q408 Q109 Q209 Q309 Q409 Q110 Q106 Q206 Q306 Q406 Q107 Q207 Q307 Q407 Q108 Q208 Q308 Q408 Q109 Q209 Q309 Q409 Q110 3
  4. 4. Customer Lifecycle Management (CLM) improves marketing effectiveness by increasing customer g y g relevance Modes of Interaction with Customers From … Increasing Customer Relevance … To Customer Lifecycle  Mass Marketing Targeted Marketing One‐to‐One Marketing Management Mass  One‐to‐One  Target‐group specific  g g p p Contextual, dynamic  , y Communication communication  i ti communication with  and personalized  emphasizing  with customers being  more information on  communication with  personalized  over contacted or  directly suitable  treatments offered at  interactions and  uncontactedd products or services d t i the right time th i ht ti product offers Response Rate*:    ~  p Response Rate*: ~ 1‐5% R R t * 1 5% 5‐10% Yesterday Moving forward * Based on results across different industries. Response Rate varies according to the offers generated 4
  5. 5. Customer Lifecycle drives profitability early and retains customer longer Customer Lifecycle Join Use Request Support Reconsider Make  Resolve   Terminate /  Discover Sign‐Up Activate Use Service Bill & Pay Revaluate Contact Issue Extend CLM Actions to Drive Greater Lifetime Value 5.  Extend Revenue  5. Extend Revenue through Proactive  Retention Treatments 3.  Intervene to Up‐ Sell / Cross‐Sell and  Drive Revenue 4.  Intervene to  With  Minimize number of  Mi i i b f CLM Unprofitable  2.  Intervene to reduce  Customers Costs‐to‐Serve and  Downward  Drive Margin Migration Range of  R f Profitability 1. Make customers  Customer  profitable faster through  Profitability  Targeted Acquisition and  Scenarios ‐ Full Service Take‐Up  p Without CLM P 6. Life‐stage and profile based treatments to match customers needs and increase loyalty  Customer Lifetime C Lif i 5
  6. 6. How to get higher x-/upsell results from your customer? an axiata company
  7. 7. How to minimize the number of unprofitable customers? an axiata company
  8. 8. How to predict future value? an axiata company
  9. 9. How to acquire high value/high loyal customer? an axiata company
  10. 10. Things can still go wrong
  11. 11. Don’t forget: Business Analytics is relying on other things! BUSINESS ANALYTICS PEOPLE PROCESSES TOOLS DATA DATA DATA DATA DATA
  12. 12. Andreas West SVP Customer Management Celcom Axiata Berhad Email: Twitter: A4XRBJ1 13