Business Challenges

As the telecom markets in the developed and developing countries are nearing saturation,
SingTel is experiencing increasing heat of competition and are experiencing a downtrend in
their ARPU. The Revenue from voice services has decreased exponentially. There has been a
considerable shift of bargaining power from the telecom service providers to the customers.
To better compete in the market, SingTel need to develop products and services which
address specific needs of the customers. SingTel also need to retain their existing customers
and subsequently increase the ARPU.

To retain the customers and to enhance their usage, we need to identify and satisfy the
unique needs of individual customers. To achieve this, we have to know our customers in a
more profound manner. Here’s some research which lays the importance of the business
analytics in the modern telecom industry.

Business Analytics Applications Research

The usage of Business Analytics helps SingTel to know more about their customer's
preferences, their behavior, and their calling pattern and can predict their future actions.
Business analytics can be widely used for the following activities:

Churn

A predictive modeling on the basis of customers' past behavior and a score is assigned to
the individual customers. This score indicates the probability of the customer to leave the
services of SingTel. We can also identify the major contributing factors to the generated
churn score, to further understand the reasons for customers’ probable churn.

Customer Segmentation

SingTel can segment their customer base on the basis of various conditions. Performing
analysis of various parameters such as, (incoming and outgoing call usage, usage of VASs,
Usage of data services etc) to segment various groups and behavioral needs to increase
share of wallet. Customers who have higher than average ARPU, will be identified for
specific campaigns which will be different from lower usage customers

Campaign Management

Based on the customer segmentation, churn score, usage pattern; campaigns can be
designed for retention, revenue enhancement (increasing customer wallet share) and cross-
sell and up sell.
Campaigns effectiveness can be measured through

- Capturing customers’ responses on individual campaigns. Can be used to infer their

responsiveness to the channels
- Analysis of customer behavior, providing insights to his needs and deliver the most
relevant message to the customer at the right time.
- Analyze direct marketing or electronic marketing response and conversion/product
take ups
Customers Affinity

Market-basket analysis, reveals linkages between products that are likely to be purchased
together and between product groupings and customer segments. Business intelligence
systems can be used for this purpose. These systems use a technique called ‘association
analyses for arriving at the right combination of products and services for a customer or
customer segment