Telecom operators’ biggest strength lies in the information they have about their customer base, an advisory body underscored in its latest white paper.

Delta Partners, a leading telecom advisory and investment firm, has lent a fresh perspective to emerging markets’ telecom economics, with the release of its document entitled ‘Customer Value Development’ (CVD).

The paper aims to clarify the importance of customer value development in emerging markets, detailing practices and benefits for operators.

“Customer value development is a process that puts rigorous customer data analytics at the core of all major management decisions of a telecom operator. It develops a new set of KPIs and operational metrics that fundamentally alter the way operators go about their business,” said Adriana Salabert, head of the CVD Unit of Delta Partners.

Operators in emerging markets today deal with major challenges related to declining growth, ARPU pressure (due to multi-SIM behaviour) and rotational churn. Customer value development deals with these challenges via leveraging an operator’s most unique assets - the data it owns about its customer base.

Detailed analysis of these data generates the insights required to optimise various commercial tactics and roll out highly effective micro-segmented marketing campaigns.

“Obviously, a range of specific capabilities should be developed to fully unlock the potential of CVD. These relate to people and organisation, systems, process and customer understanding, although measurable results can be obtained from the very beginning, regardless of an operator’s starting point,” says Rogier Van Driessche, partner at Delta Partners.

“Our experience in over 20 operations in emerging markets has proven that CVD can generate 5 to 15 per cent EBITDA improvement, with immediate payback” said Salabert. – TradeArabia News Service