With data being generated at every turn across multiple sources, telcos now possess an opportunity to tap into deeper data sources obtained from a host of channels and partners. This whitepaper aims to be a primer on customer profile enrichment and educate telco marketers on how multi-source data can help paint a better picture of their customers by enriching their existing profiles. Also in this discussion are the various benefits of customer profile enrichment and the scope of enriched profiles beyond existing customer bases.

1. Customer
Profile Enrichment
using analytics for Telcos

2. 01
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EXECUTIVE SUMMARY
Customer profiles are a great way to
help define the ideal customer. For
telcos, customer profiles are a
comprehensive representation of
the typical users of a product or
service. The focus on wants and
needs from a customer perspective
makes profiling an attractive option
for telcos to make marketing
decisions and target communication.
CUSTOMER
PROFILES ARE A
COMPREHENSIVE
REPRESENTATION OF
THE TYPICAL USERS
OF A PRODUCT OR
SERVICE.
Profiles begin life from the data
generated by the interaction of
customers with the telco’s various
touchpoints (site, shop floor,
customer care etc.). They are
created by mining through the
huge data sets and harvesting
insights and hence they are only as
good as the data they originate
from. This gives rise to a question
of ‘how much’ of a customer’s
profile is enough to build
communication on? Basic
customer data can only generate a
basic customer profile which when
used as a marketing foundation
might not cover all the angles and
bases. Communication that leans
on basic information such as a
customer’s monthly plans and
payment histories cannot help
understand customers in the long
run and in some cases even be
counterproductive.

3. However, with data being
generated at every turn across
multiple sources, telcos now
possess an opportunity to tap into
deeper data sources obtained from
a host of channels and partners.
This whitepaper aims to be a primer
on customer profile enrichment
and educate telco marketers on
how multi-source data can help
paint a better picture of their
customers by enriching their
existing profiles. Also in this
discussion are the various benefits
of customer profile enrichment and
the scope of enriched profiles
beyond existing customer bases.

4. INTRODUCTION TO
DATA TYPES
It is imperative that we first
understand the various types of data
that come into play in data
marketing ecosystem. Data typically
can be classified based on its point
of origination relative to telco. Ergo
data can be broadly classified as
either falling under First, Second or
Third Party information. A quick
definition of the three types of data
is as follows.
DATA CAN BE
BROADLY
CLASSIFIED AS
EITHER FALLING
UNDER FIRST,
SECOND OR THIRD
PARTY
INFORMATION
02
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.....................................
● FIRST PARTY DATA
First Party Data is that data which is
directly generated as a result of
customers interacting with a telco
and its associated products.
Examples could be anything from
customers’ voice and data plans,
Support history, Payment plans
and track record etc. This data is
typically generated and stored
within the confines of the telco’s
business ecosystem and is the
simplest and most direct form of
data available.

5. ● SECOND PARTY DATA
The telecom marketing
landscape is a complex network
of channel partners,
manufacturers, and retailers just
to name a few. Data is available
with such partners is known as
Second Party Data. Think of this
data as a partner’s First Party
Data. And in the context of
telecom such data could be
anything from a particular
customer’s device preferences, to
their inclination towards offers.
● THIRD PARTY DATA
Third Party Data is that which can
be obtained from external
sources such as the public
domain or that which can be
purchased from data selling
entities. Examples include market
information, demographic data,
economic data and so forth.

6. 03
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.....................................
INTEGRATION OF 1, 2
AND 3RD PARTY DATA
WILL RESULT IN
AN ENRICHED
CUSTOMER PROFILE
First party data can provide
fundamental knowledge about
customers and their basic
preferences. But to truly
leverage the power of a
customer profile, it is imperative
that a profile conveys deep
insights and paints a wholesome
picture of the customers it
represents. This means
enriching the profile beyond the
standard of first party data.
Using data from various second
and third party sources telcos
can add on to what is already
known about their customers.
The confluence of first, second
and third party data can elevate
a customer profile to the extent
that telcos can target their
communications to fulfil the
wants, needs and preferences of
their target customer base down
to an individual level.
IT IS IMPERATIVE
THAT A PROFILE
CONVEYS DEEP
INSIGHTS AND
PAINTS A
WHOLESOME
PICTURE OF THE
CUSTOMERS IT
REPRESENTS.
3RD
PARTY
DATA
2ND
PARTY
DATA
1ST
PARTY
DATA
CUSTOMER
PROFILE

7. 04
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.....................................
EXPECTED BENEFITS
Using data from multiple sources in
customer profiling enrichment has
many benefits, a few of which are
outlined below.
● Using multi source, multi-party
data, telco providers can help
identify new and attractive
segments and sub-segments to
reach out their products and
services to
● Telcos also receive invaluable
insight on customers’ purchasing
decisions and behavior and create
an opportunity to address them
directly through proper lines of
communication
● The greater relevance of the
products and services to the
target audiences’ wants and needs
induces a higher rate of
conversion
● Telcos can also communicate
product and service features in a
more transparent manner and
better manage their customers
and prospects expectations of
their brand
THE GREATER
RELEVANCE OF THE
PRODUCTS AND
SERVICES TO THE
TARGET AUDIENCES’
WANTS AND NEEDS
INDUCES A HIGHER
RATE OF
CONVERSION
BENEFITSBENEFITS!!

8. 05
............
.....................................
HOW USING 2ND
AND 3RD PARTY DATA
ALONG WITH 1ST PARTY
DATA TRULY LEADS TO
ENRICHMENT
Every single point of customer
interaction can produce a deluge of
First, Second and Third Party data.
But if telcos choose to pursue
customers purely on the basis of
their own, First Party Data then their
understanding of customers
becomes severely limited as
explained in the example below.
Imagine a major telco is basing next
quarter’s customer communication
exclusively based on the information
of customers’ interactions with their
products and nothing else (First Party
Data). With such a limited spectrum
of information, the different ways by
which the telco’s customers can be
communicated to become severely
restricted. There is a risk of the same
customers being touched with the
same campaigns over and over
leading to campaign fatigue and the
customers deciding to call time on
the relationship.
THERE IS A RISK OF
THE SAME
CUSTOMERS
BEING TOUCHED
WITH THE SAME
CAMPAIGNS OVER
AND OVER
LEADING TO
CAMPAIGN
FATIGUE AND THE
CUSTOMERS
DECIDING TO CALL
TIME ON THE
RELATIONSHIP.

9. Continuing with the previous example,
let us assume in addition to first party
data such as plans, coverage and
payments, the above mentioned telco
also has access to second and third
party data obtained from its partners.
Customers’ device preferences,
accessories purchases, point of sale
information etc. can help create a
much more rounded and
comprehensive picture of the same
customer than just first party data.
The result is a richer customer profile,
with better targeting and
personalization opportunities when it
comes to communications. For
example, rather than offering a
standardized cellular plan to a
smartphone using customer, a
tailored plan offer can be created
which offers more data value to the
particular customer – something that
would be quite relevant to a user
utilizing a smart device.
DAT
PLANS
3G
2GMEGA BYTES
UNLIMITED
But if a telco could have access to more information on what their customers do,
what they want or don’t want there is the opportunity for them to understand their
customers to a greater level that presently possible. Telcos can learn more about
their customers’ behaviors, which in turn can open up many more ways to target
and communicate to customers. This is where second and third party data can help
as explained below.

10. 1. STARTING WITH EXISTING
CUSTOMERS
Reaching out to prospects requires
telcos to first master the art of reaching
out to their existing customer bases.
Typically, First Party Data intelligence
empowers telcos to acquire a
comprehensive knowledge of their
customers’ wants and needs, which can
be used to further fine tune segments
and create communication strategies
and campaigns that leverage the various
customer engagement channels.
06
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PROFILING
PROSPECTIVE
CUSTOMERS WITH
ENRICHED PROFILES
DATA
While enriched profiles are an
excellent tool to better understand
existing customers, they can also be
used to acquire in-depth knowledge
about prospective customers.
Campaigns that run on the existing
customer bases generate valuable
intelligence which is the first step in
understanding prospects. The
following sections elaborate on how
to reconcile the learnings from
existing customer campaigns and
extrapolate the knowledge to form
enhanced prospect profiles.
ENRICHED
PROFILES CAN
ALSO BE USED TO
ACQUIRE IN-DEPTH
KNOWLEDGE
ABOUT
PROSPECTIVE
CUSTOMERS.

11. 2. BEHAVIORAL MAPPING
Campaigns generate huge amounts
of customer information and insight.
Currently running customer
campaigns give rise to a host of
learnings which can be extrapolated
to the raw prospect base. For
example, if a customer in a specific
age group, falling under a particular
salary bracket has a preference for a
premium telco plan, then it is highly
logical that a prospective customer
with the same attributes could
potentially favor the same plan.
Further clarity and fine tuning can
be achieved by superimposing
Second and Third Party Data such
as typical devices preferred by the
demographic and average monthly
spend on mobile communications.
The characteristics and behaviors
can be mapped to the prospect
base using ‘Look Alike Models’ and
White Space Analyses’.
3. TESTING
With the target audience and their
characteristics established,
personalized communication and
messaging follow. Multiple versions
of campaign messages with
variations in visuals, text and call to
actions are created with the aim to
resonate with the targeted
prospects. The variations are sent
out and are kept track of for
responsiveness.
A B
B C
A C

12. 4. FINAL VERSIONS
By continuously tracking a prospect’s
campaign responses, the optimal
lines of communication are identified
for the prospect segments with
similar attributes and characteristics
to the existing customer base.
Further improvements are driven to
optimize the engagement and fine
tune the final communication to
enable the onboarding of
respondents.
TELCO

13. 07
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CONCLUDING
THOUGHTS
With customer needs and behavior
changing drastically, they are no
longer satisfied with vanilla telco
experiences. Prospective customers
expect telcos to attract them with
value additions such as offers,
freebies and the ubiquity of data
makes a multi-party, multi-source
data driven approach highly desirable
for those wanting to understand
customers and stay ahead of the
competition.

14. ABOUT XERAGO08
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.....................................
Xerago is a new age marketing solutions company with a footprint across Asia
Pacific, now making its foray into USA. Clients include Citi, DBS, HDFC Bank,
SM Retail, Celcom, Starhub, Intel, BharatMatrimony, and a number of other
market-leading and start-up brands.
To learn more about Customer Value Maximization and how it can help you,
contact your nearest Xerago office.
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