Customer Analytics in Telecom.pptx

IRIS Boot camp: Agenda

Customer & Marketing Analytics:TELECOM

Document typeDateCONFIDENTIAL AND PROPRIETARYAny use of this material without specific permission of McKinsey & Company is strictly prohibited

TRACKERUnit of measure1 FootnoteSOURCE: SourceTitleUnit of measureAgendaProcess FlowCLM test campaign Offer ExecutionCLM test campaign EvaluationCLM test campaign Offer designCLM test campaign Segmentation approachNeed of Segmented OffersCLM test campaign Communication Execution

TRACKERUnit of measure1 FootnoteSOURCE: SourceTitleUnit of measure1To be updatedAgendaProcess FlowCLM test campaign Offer ExecutionCLM test campaign EvaluationCLM test campaign Offer designCLM test campaign Segmentation approachNeed of Segmented OffersCLM test campaign Communication Execution

TRACKERUnit of measure1 FootnoteSOURCE: SourceTitleUnit of measure2To be updatedTelecom: A snapshotTeledensity in India stands at 74.02% Monthly 5.5 million subs are added

OperatorsSubs figures (in million)*Bharti Airtel188.2Vodafone152.35Reliance122.97Idea121.61BSNL101.21Tata66.42Aircel60.07*Source: trai.gov.in QE Mar13

TRACKERUnit of measure1 FootnoteSOURCE: SourceTitleUnit of measure4WHERE DOES CUSTOMER & MARKETING ANALYTICSFIT IN

To create processes to gain insights and drive performance & profits across products/segments

To engage customers by offering segmented products and retailers by providing earning opportunities

To target increase in revenue and contribution through targeted and segmented programmes, reduce churn and manage CLM

To convert this expertise into competitive edge and improve overall market share (RMS & CMS)

Objectives and Deliverables5

Test several offers against each segment to find positive Return on Investment (ROI).. Let customer decide the best offer..!Micro segments (50-100K) based on usage through Intensive data mining.. Different offers to different micro-segments prevent value destruction ..!Target customers at all stage of their lifecycle.. Upsell, crosssell, retain and train through creative offerings ..!!Scale tested offers to millions of subs through multiple parallel broad-launches and analyze results on real time basis.. Build a library..!Segments of 50-100K2Customised campaigns4Scale & SpeedDont guess, Test !13How is it different from traditional Usage & Retention programs?6Use ROI w.r.t. control group to measure real contribution6

The objective of Prepaid CLM campaigns is different based on the lifecycle stage of each customerPhase 1: New joiner phaseObjectiveReduce high churnIncrease ARPUPhase 2: Stable phaseARPU stimulationReduce downgradePhase 3: Churn phaseObjectivePrevent churnStimulate upgradeTime (AoN)ARPUTypical lifecycle of a telecom customerFocus Area for Static programsFocus Area for Dynamic/ ZU Programs

TRACKERUnit of measure1 FootnoteSOURCE: SourceTitleUnit of measure7AgendaProcess FlowCLM test campaign Offer ExecutionCLM test campaign EvaluationCLM test campaign Offer designCLM test campaign Segmentation approachNeed of Segmented OffersCLM test campaign Communication Execution

TRACKERUnit of measure1 FootnoteSOURCE: SourceTitleUnit of measure8To be updated9Basic Segmentation Approach

VLR days: Visitor Location Register (No of days a subscriber is latched to a network in a month)MoU: Minutes of usage in a moth10Basis of Segmentation FrameworkBroad segmentation basis MOU, VLR and AONFurther segmentation basis current stage on CLM

,The micro segmentation is used to identify specific behaviours and usage patterns to make campaigns targeting specific value leversThe strategic segmentation is used to categorize the customers based on main usage and behaviour categoriesCurrent focusValue leversShare ofWalletUsage stimulationRetentionType (SMS, Voice, VAS)Time (Weekend, Night))Volume (MoU, Count)Duration/FrequencyOutgoing/IncomingPrimary dimension Primary usage Sub-usage >3 mths.Data/ text usersData/ text non usersMr. Local onnetMr. Local offnetMr. STDMr. VASMr. BalancedxxxxxxxxxxxxxxSuper< 3 mthsxxxxAON MOU/VLRAll subsMr. Local onnetMr. Local offnetMr. STDMr. VASMr. BalancedxxxxxxxxxxLocal balancedxxLocal balancedxxMicro Segmentation Approach Every micro segment has different need1111 Secondary variables are chosen depending upon campaign intent

NOT EXHAUSTIVEMandatory Optional Local on-net boost 1Local I2I OG MoULocal I2I OG MoU /Total local OG MoULocal on-net OGRRSTD boost 3STD OG MoUSTD OG MoU /Total OG MoUSTD I2I OG MoUSTD OG RRSMS boost 4OG SMS countSMS revenue/Airtime revenue ratioData 6Current data spend orCurrent data usage (No of KB)Data revenue/Airtime revenue ratioNight MoU5Night OG MoUNight OG MoU /Total OG MoUNight I2I OG MoULocal boost 2Local OG MoULocal OG MoU /Total OG MoULocal OGRRMicrosegmentationVLR days 7Current months VLR days

VLR days of last monthRecharge /Usage behaviour current vs last month

TRACKERUnit of measure1 FootnoteSOURCE: SourceTitleUnit of measure12What and why?The core of Prepaid CLM is the test campaign methodologyWhat is a test?A test is conducted on a sample to determine effectiveness of various campaign offers

Why test?Testing enables us to use targeted campaign offers toa) increase revenueExploit elasticity of micro-segmentsUse repricingb) Reduce churnIncrease saves How?Analysis and data miningOffer designTest to select target and controlROI resultsOfferAOfferBOfferCControlSegment 1Segment 2Segment 3Segment 413

432Every CLM test campaign has four core componentsOffer AOffer BOffer CControlTarget 1Target 2Target 3Target 4A combination of necessary test components OffersWhat offers do we use:Top-up bonusBundle offersTariff discounts Offer executionHow do we execute the offer?Target and control groupHold outs and multiple offersImagine configuration etcHow do we execute communication?Mode, language, time of day etc. results in a campaign grid used for evaluationOffer evaluationHow should we evaluate the campaigns?1Execution details: Offer grid identifies successful offer for each target through testing Offer is then executed as a broad launchSegmentsWho are we targeting? E.g., segmentation by ARPU, SMS/MOU, time of zero balance IntentWhat do we want to address through the campaign? E.g., Local onnet boost, STD boost or SMS boost


TRACKERUnit of measure1 FootnoteSOURCE: SourceTitleUnit of measure15To be updatedOffer design is a 3 step process

Based on the chosen intent, identify 3-4 relevant product concepts (e.g. bulk minute bundles, rate cutters, rate cutters with talktime etc)Do a detailed profiling of the micro-segments around spend, usage, recharge patternBased on profiling design 3-4 price points for each product concept at varying levels of discount and varying levels of stretchFor each price point, design 1-2 variants in the communication script where applicable (e.g. communicate tariff or communicate discount)Decide on product conceptsDecide price pointsDecide script variants 123Activities Offer design

TRACKERUnit of measure1 FootnoteSOURCE: SourceTitleUnit of measure16

1 Assuming a near normal distribution of the subscriber baseUsage on the selected secondary usage variableObjective for the various bands of usageLowMediumHighNumber of subscribers1AdoptionCross-sellUp-sellDo Not TouchOffer DesignIntent decides the product being offered to the customer1

TRACKERUnit of measure1 FootnoteSOURCE: SourceTitleUnit of measure17Deciding the price points for testing is a function of 3 key factors stretch /ticket size, discount /benefits and validity

2Guiding principles Stretch should be sufficiently aggressiveThe discount offered should not be greater than the stretchAffordability Available price pointsKey driving factorsSupporting analysis Recharge frequency Modal recharge value Ticket size Tariff discount RR (on specific leg)Benefit Minutes Usage (leg wise)Usage per decrement day (leg wise)Talktime ARPUDuration of benefit No. of times customers can take the offer Decrement days (on specific leg)Offer profitability Validity/ eligibility ILLUSTRATIVEOffer designWHICH PRICEPOINT IS BETTER?? MRP 14 OR MRP 19

TRACKERUnit of measure1 FootnoteSOURCE: SourceTitleUnit of measure18Script variants can be designed by modifying the Hook and Value elements

3Value STD rates slashed Upto 50% discount on STD rates Hook RC 11: STD calls at 30p/ min for 15 days Offer Recharge for Rs. 200 and get full talktime Full talktime FTT on RC 200Rs. 20 free talktime credited to your account. Recharge for Rs. 200 to start using free talktime Free talktime Offer design Recharge with Rs11 and call STD at 30p/min for 15 days


TRACKERUnit of measure1 FootnoteSOURCE: SourceTitleUnit of measure20To be updatedCLM offer execution comprise of the following elements

ElementWhatWhyTarget control philosophyComparison of target group of a test campaign with a control group not exposed to the campaignEnsure exact evaluation of effect of a campaignHold out principlesExclusion of target/ control group of a test from other campaigns for a defined duration of timeEnsure exact evaluation of effect of a campaign over time and on a sustainable basisSamplingNumber of subs in target and control group and approach to generate the listStatistical rigour to ensure the test is statistically significant and applicable for entire populationExclusion listExclusion of subs from a campaign due to different reasons DnD, VLR (only for test)Ensure subs who were not contacted do not result in mis-interpretation of campaign resultsDuration of test/analysisPeriod when offer is run and communications are sent. The offer period is defined upfront. Analysis period is the duration over which target and control groups are studied & compared to evaluate campaignTo ensure subs are given sufficient time to respond after receiving a communicationEnsure exact evaluation of effect of a campaign over time and on a sustainable basis12345Offer execution

TRACKERUnit of measure1 FootnoteSOURCE: SourceTitleUnit of measure21\Net take rates determined by target and control take rates

Target (gross) take rateNet take rateControl take rateRelationship between target, control and net take ratesControl take rateDefined as the share of control group subscribers who would have qualified for the offer or availed of the offer (even though they were not exposed to the offer)Target (gross) take rateDefined as the share of target group takers who availed of the offerNet take rateDefined as the share of target group takers who under normal circumstances would not have availed of the offerOffer execution


TRACKERUnit of measure1 FootnoteSOURCE: SourceTitleUnit of measure23To be updated

Compliance to Regulatory Guidelines & not to disturb DND customers.DND scrubbingDND Scrubbing to be done for all Push Modes used for Communication like SMS and OBD.VLR scrubbingRequired to optimise SMS/OBD capacityFor high VLR segments, previous days data may be obsolete, and they may be back on VLR today, so no VLR scrubScrubbing will be based on VLR latched subscribersCampaign manager to decide on need for VLR scrubbing.GuidelinesRationaleHold-out scrubbingScrubbing of Target and Control base(Holdout Base) from Circle Segmented Offers Base during the Holdout Period (currently 15 Days) For Revenue Calculation.Send : Whom should we Scrub from the base?

TRACKERUnit of measure1 FootnoteSOURCE: SourceTitleUnit of measure24Receive: Preferred mode and time maintaining discipline

ElementWhatWhyMode of communicationChoice between SMS, OBD, IVR etc. to communicate the offer. Choice of mode over a day and over the offer periodEnsure target group is contacted in a mode of their preferenceChoice of the exact time to send the communication at. Choice of any variation in time during the campaignEnsure the subs are contacted at a time with maximum possibility of actionTime of communicationChoice of number of times a user is contacted in a day and over the offer durationTo strike the right balance between reminders/ recall and communication spam and dissatisfactionFrequency of communication123

TRACKERUnit of measure1 FootnoteSOURCE: SourceTitleUnit of measure25Receive:Mode of communication?

SMSSIVROBDPush SMS from Call Center.Push SMS from SIVRUSSDInsta alerts- SMS & OBDRecharge confirmations- Retailer & customerWhat validity and retry policies are used?Modes of communication used?

TRACKERUnit of measure1 FootnoteSOURCE: SourceTitleUnit of measure26Receive: Mode of communication selection

Customers mode preference to be updated based on proxies -Customers with outgoing SMS usage >=10 in last 30 days will be SMS profiled .More than 3 successful OBD in last 3 months.The customers with >3 OBDs heard for >= 10 secs or >= 50% of the length of the OBD.Default customer mode preference to be SMSOBD retries: 2 retries to be attempted for all unsuccessful OBD calls.SMS retries: 1 Retry (automatically happens in BMG).What validity and retry policies are used?What mode of communication is to be used?

TRACKERUnit of measure1 FootnoteSOURCE: SourceTitleUnit of measure27Receive: Time of communication?Time of day For all communicationRecharge based offers: Communication to be sent 1 hour before peak recharge window for corresponding MoU/VLR segmentUse & get offers: Communication to be sent at start of daysuccess of communication: OBD success & SIVR hits

Event based triggersRechargeLatch on to network (Insta alert) for -Zero Segment (Customers not on VLR for >=30 days)ZU >=4 Days & Lower ARPU bands of Regular)When should the communication be sent?

TRACKERUnit of measure1 FootnoteSOURCE: SourceTitleUnit of measure28We dont follow this currently.. Receive: Frequency of communication?

Local Idea Call Rates Slashed To 20P/Min For 30 Days. Recharge With Rs.26 And Enjoy Cheaper Idea To Idea Calls. Hurry!! Limited Period Offer Specially For You.

How much to communicate?IllustrationIncoming call+91 95432 12345

Day 19:00 AMSMSDay 16:00 PMOBD

Communication not to exceed 2 SMS (U&R, VAS) + 1 OBD push per unique sub per day to VLR latched subscribers All Communication to go between 9 AM to 9 PM as per TRAI Guidelines

TRACKERUnit of measure1 FootnoteSOURCE: SourceTitleUnit of measure29Understanding Language:Language of communication

Is stated preference known?YesNoNoYesUse stated preferenceAre proxies available?Use default languageIs English the selected language?Use language deduced from proxiesNoYesVernacular script usedEnglish script usedIs handset vernacular script compatible?NoYesWhat language is to be used to communicate?All communications to customers (text and voice) will be in the customers preferred languageCustomers language preference to be updated based on proxiesStatic IVR language preferenceCall centre IVR language preferenceCRBT languageDefault customer language preference to be the regional languageVernacular script to be used for compatible handsets only (IMEI based check)

TRACKERUnit of measure1 FootnoteSOURCE: SourceTitleUnit of measure30Understand offer: Scripts should hold customers attention & have clear call to actionLearningHookMust capture attention in the:First 10 seconds of voice communicationFirst line of text communicationLinked to campaign type, not to specific microsegmentsValue propositionClaritySimple explanation of offersPerceived valueRate cutters, bulk minutes:Quantum of benefit statedUse & Get:State incremental usage requiredUse of personalised messages e.g., Especially for youTrustDo not use caveats e.g. Avoid T&C applyCall to actionExplicitly stated call to actionEase of availing offer e.g. through balance deductionCreation of sense of urgencyReminders on expiry dateExampleFree Mins!STD rates slashed500 minutes for STD calling Now make STD calls at only 30p/minRecharge for Rs.26 today!Offer valid only for 2 days more!

TRACKERUnit of measure1 FootnoteSOURCE: SourceTitleUnit of measure31Understand Offer:Script variants can be designed by modifying the Hook and Value proposition elements

ILLUSTRATIVEValue Recharge with Rs11 and get STD Calls at 30p/min for 15 Days!Get STD calls at only 30p/min for 15 Days on Recharge of Rs11.STD rates slashed! Upto 50% discount on STD rates! Hook RV11: STD calls at 30p/min for 15 days Offer Recharge with Rs200 and get full talktime Full talktime! Full talk time on RC 200Rs. 20 free talktime credited to your account. Recharge for Rs. 200 to start using free talktime Free talktime!Rs. 20 free! Call to action Last 2 days Left!Offer till 30 Mar only!Recharge Today!Hurry! Recharge Now.

TRACKERUnit of measure1 FootnoteSOURCE: SourceTitleUnit of measure32Understand Offer:How crucial is Way of Communicating? Script 2Script 1Complete value for money!Get FULL Talktime of Rs22 valid for 20 Days on Recharge of Rs22.Recharge today!Limited Period Offer Specially For U.Call tollfree 53533Full TT Only for U - Recharge = 22 ; Talktime = 22 ; Validity = 20 Days. Recharge Today! For Details,dial tollfree *147*99#Sample SMS Scripts used for testingHar Recharge Poora Recharge!!Recharge Kare Rs35 Se Aur Paaye Poore Rs35 Ka Talktime.Validity 30 Din.Seemit Samay Offer Khaas Aapke Liye.Call Tollfree 53533Full TT Sirf Apke Liye - Recharge = 35 ; Talktime = 35 ; Validity = 30 Din. Aaj hi Recharge Kare! Adhik Jankari ke liye,dial *147*99#EngHin

TRACKERUnit of measure1 FootnoteSOURCE: SourceTitleUnit of measureAgendaProcess FlowCLM test campaign Offer ExecutionCLM test campaign EvaluationCLM test campaign Offer designCLM test campaign Segmentation approachNeed of Segmented OffersCLM test campaign Communication Execution

TRACKERUnit of measure1 FootnoteSOURCE: SourceTitleUnit of measure34To be updatedCampaign evaluation using ROI helps us to understand which of the different offer is performing better

Which offer is better? Campaign evaluation using ROI helps answer by considering different factors:How many customers are you going to get to top up who would not have topped up otherwise?How many customers are you going to be giving the offer to who would have topped up otherwise?What will the customers who take your offer do after they take the offer? Do they spend more on the network?What happens to the customers who dont take the offer? Do they top up on their own later?

All I2I local calls @ 30 paisa per minute for a recharge of Rs 11 is totally the best offer!No way! Recharge for ` 11 and get 30 local I2I minutes is way better!Key Indicators used for campaign evaluation

Revenue UpliftNet Take RateGross ContributionNet ContributionNet Contribution MarginBenefit to Cost RatioABCRevenue Uplift: 1%Net Contribution: 100ROI: 25%Revenue Uplift: 2%Net Contribution: 200ROI: 35%

Revenue Uplift: -2%Net Contribution: -100ROI: -

Revenue Uplift: -5%Net Contribution: -300ROI: -25%

Revenue Uplift: 1%Net Contribution: 100ROI: 25%Revenue Uplift:5%Net Contribution: 1000ROI: 25%Revenue Uplift: -7%Net Contribution: -600ROI: -Revenue Uplift: 4%Net Contribution: 500ROI: 20%

Revenue Uplift: 1%Net Contribution: 100ROI: 25%

123Campaign evaluation

TRACKERUnit of measure1 FootnoteSOURCE: SourceTitleUnit of measure35The total impact (ROI) from a campaign is determined by 5 factorsCompare usage growth Vs control during campaign periodHow do we calculate it?Total impactOutgoing usage benefitWhat is it?Incremental contribution because of increased outgoing usageCompare expected lifetimes in target and control, based on TTC distributionLoyalty benefitMonetized value of the improvement in TTC distribution at the end of the campaignInbound usage benefitCompare inbound usage growth Vs control group during the campaign periodRevenue earned from inbound calls Offer costCalculated based on offer typeCost of making the offer to all the takers of the campaignExecution costsDirect costs of executing the campaign (e.g., cost of outbound calls, IT changes)Execution cost multiplied by the number of targeted customersCampaign evaluation

TRACKERUnit of measure1 FootnoteSOURCE: SourceTitleUnit of measurePost launch campaign evaluation provides a wealth of campaign data

Campaign insights and implicationsTake rate: How many people took the offer?Realized rates: How did the realised rate change after the offer?Usage uplift: Did the customer who took the offer increase their MoU usage?Revenue uplift: Did the customers who took the offer spend more on the network? Deep dive on specific offers: Which offers yield the best net revenue stimulation? Are there new insights that drive revenue?Reprice: How did usage patterns change with the offer?Bro-Test-Launch: Is there sufficient learning to proceed to broad launch?Campaign evaluation


TRACKERUnit of measure1 FootnoteSOURCE: SourceTitleUnit of measure38To be updated

End to end process for campaign managementEntire customer baseMacro SegmentationMicro SegmentationSegment 1Segment 2Segment 3Product 1Product 3Product 2TESTScript 1Script 3Script 2TESTBROAD LAUNCHROI AnalysisRevisit Segmentation

TRACKERUnit of measure1 FootnoteSOURCE: SourceTitleUnit of measure39

Document typeDateCONFIDENTIAL AND PROPRIETARYAny use of this material without specific permission of McKinsey & Company is strictly prohibited

TRACKERUnit of measure1 FootnoteSOURCE: SourceTitleUnit of measureSample size is determined by 4 key factorsFour key factors affect sample sizeLevel of precision (sampling error), e:Range, in which the true value of the population is to be estimated; often expressed in x% E.g., if research shows that 60% of mobile base has churned with a precision of 5%, then we can conclude that between 55% and 65% of population has churnedConfidence level (risk level), Z:Extent, to which samples drawn from the population will have the attribute value equal to that of the populationE.g., 95% confidence level means that 95 of 100 samples drawn from mobile population will show 60% churn rate within the precision range of 5%Degree of variability, p:Refers to the distribution of an attribute (e.g. churn rate) in the population. The more heterogeneous a population is with respect to the attribute, the larger the sample size required for a given set of precision and confidence levelsProportion of 0.5 indicates maximum variabilityPopulation size:The smaller the population size, the larger a proportion of the population is needed as sample size. As population size gets larger, sample size tends to a fixed number

SamplingerrorConfidence levelN = 800,000N = 400,000N = 200,000Increasing sample sizeRelationship between precision and confidence levelsp = 60%Relationship between sample size and population sizep = 50%, confidence level = 95%, sampling error = 0.3

Sample sizePopulation size

Formulas: sample sizewhereOffer execution

TRACKERUnit of measure1 FootnoteSOURCE: SourceTitleUnit of measure41Sample selection: Use of the t test to select appropriatecontrol and target groupsList of MSISDNs with relevant parameters for comparison e.g. ARPUSample size (From sample size calculation tool)T-test based sample selection toolWhat is the t-testUsed to check if the means of the control and targets groups are statistically different from each otherCompares the difference between the means of the control and target groups relative to the spread of values in both groupsCase 1: Medium variabilityControl mean target mean = 10Means are not statistically different; T test does not failCase 2: High variabilityControl mean target mean = 10Means are not statistically different; T test does not fail

Case 3: Low variabilityControl mean target mean = 10Means are statistically different; T test fails

Control groupTarget group101010Selecting target and control groupsUse t-test based sample selection tool to select control and target groupsMean ARPU must not be statistically different between the 2 groupsTool allows t-test on mean of 1 additional parameter (e.g. STD OGMoU)Recommended target & control group listOffer execution

TRACKERUnit of measure1 FootnoteSOURCE: SourceTitleUnit of measure42 Hold out period is used to accurately measure the effectiveness of a campaign

General guidelines and hold out principles for IRISWhat is hold out?Target and control group of a campaign are excluded from subsequent segmented offers for a defined duration. This duration is called hold out periodMeasured from start of promotionLonger the hold-out period, higher is the accuracy of resultsLarger the number of contacts needed, shorter would be the required hold-out periodEqual hold-out periods for control and target groupsEqual hold-out periods for takers and non-takersMinimum hold-out period >= duration of offerHoldout period >= Validity of benefit given in the offerUsually analysis period = hold out period would be same, however for certain campaigns e.g. churn reduction campaign, analysis period can be longer than hold out periodOffer executionWhy is it important?To ensure that the change in usage and revenue observed is purely due to the test or broad launch offer madeThe impact of a campaign can and generally accrue over time. So the target and control groups are studied for entire duration of hold out and the revenue is compared at the end to evaluate a campaign

TRACKERUnit of measure1 FootnoteSOURCE: SourceTitleUnit of measure43 Test duration is critical to ensure we are getting the maximum benefit of the campaign

General guidelinesWhat is test duration?Period when the promo is live and the offer is send to the target group is called test durationA test campaign will be run for 2 weeks with the offer communicated every day to the subscriber baseThough not preferred, a campaign can be withdrawn after week 1 if it is not finding any upliftSequential offers can be tested after week 1 in case we want to improve take rates. Though these sequential offers should be for the same intent. In this case, the combined offer duration should be 2 weeksIn case the second offer in a sequential offer looks successful, it can be tested separately for 2 weeks on a different target groupOffer executionWhy is it important?Striking right balance of test duration is important because:Long enough to ensure we reap all benefits of customer action and do not stop before customer inertia is brokenNot too long to start contributing to communication spam and customer agitation

TRACKERUnit of measure1 FootnoteSOURCE: SourceTitleUnit of measure44AgendaProcess FlowDIU and other Analytics Models CLM test campaign Offer ExecutionCLM test campaign EvaluationCLM test campaign Offer designCLM test campaign Segmentation approachNeed of Segmented OffersCLM test campaign Communication Execution

TRACKERUnit of measure1 FootnoteSOURCE: SourceTitleUnit of measure45To be updatedCONCEPT: Dynamic TriggerW1W2W3W4W5W6W7W81st Mayto7th May8th May to14th May15th May to21st May22nd Mayto28th May29th Mayto4th June5th Juneto11th June12th June to18th June19th Juneto25th June26th Juneto2nd July3rd Julyto9th JulyBase MonthTrigger WeekPredicted PeriodW1W2W3W4W5W6W7W8W1W2W3W4W5W6W7W8Dynamic Trigger Algorithm ensures that new set of potential droppers are dynamically identified based on their latest usage pattern46

TRACKERUnit of measure1 FootnoteSOURCE: SourceTitleUnit of measureNoYesNoACYesDBActual DropPredicted DropKey parametersHit rate = (B) / (B+D)Penetration = (B) / (B+C)LiftAssume Base showing >50% Drop in M2 = 20%Thus Prediction Accuracy achieved by Random Base Selection = 20%If Model Hit Rate = 60%Then, Lift = 3x (Hit Rate) / (Prediction Accuracy achieved through Random Selection) CONCEPT: Performance Measures47

TRACKERUnit of measure1 FootnoteSOURCE: SourceTitleUnit of measure ANALYTICAL MODEL : Evolution of DIU Models Linear Business Rule:Single Variable mid-month / 7-day profilingDecision Tree (CHAID)Weekly KPIs considered for Model DevelopmentCaptures interplay of variablesLogistic RegressionDaily KPIs with statistical transformationsSubscriber level Churn Scores to handle seasonalityProvides better performance compared to Linear Model

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TRACKERUnit of measure1 FootnoteSOURCE: SourceTitleUnit of measure ANALYTICAL MODEL : Dimensions ConsideredRCHG_CNT_PAPERRCHG_CNT_V_TOP_UPCUST_REVTOTAL_MOUDECREMENT_DAY_FLAGMAIN_BAL_INRTOT_OG_HOME_REVTOT_OG_ROAMING_REVRAT_REV_F7M3_M2PROP_HOM_REV_L7RAT_REV_M1_M2MAX_REV_L7DS_RCH_L37SLP_MBL_L7CNT_OG_ANY_L7PROP_IC_MOU_ALL_L7AVERAGERATIOSUMPROPORTIONSLOPECOUNT

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TRACKERUnit of measure1 FootnoteSOURCE: SourceTitleUnit of measureVariablesDescriptionImpactRAT_REV_F7M3_M2Ratio of extrapolated ARPU in last 7 Days compared to M2 ARPUNegativeSD_REV_3DB_L36Standard Deviation of customer revenue of 12 groups with mean of 3 days each for last 36 days PositiveMAX_MBL_L4Maximum of the MAIN_BAL_INR in the last 4 daysNegativeCNT_DEC_INS_M1Number decrement days in M1NegativeSUM_OG_MOU_L7Total outgoing minutes of usage in last 7 daysNegativeSLP_DEC_L7Rate of change of decrement in last 7 Days NegativeDS_RCH_L37Days since last recharge in the past 37 daysPositiveDS_USG_L37Days since last usage in the past 37 daysPositiveANALYTICAL MODEL : Featured Variables50

TRACKERUnit of measure1 FootnoteSOURCE: SourceTitleUnit of measureSheet1 (3) VLR days /subOG MoU /sub0 MoU1-5051-100101-150151-200201-400>4000 daysZERO(0 MoU; 0 VLR)1-7INCOMING (Nil OG MoU)CASUAL (15 VLR)SUPER PLUS (>400 MoU; >15 VLR)22-31

VLR daysOG MoU /sub0 MoU1-5051-100101-150151-200201-400>4000 daysZERO(0 MoU; 0 VLR)1-7INCOMING (Nil OG MoU)CASUAL (15 VLR)SUPER PLUS (>400 MoU; >15 VLR)22-31

Sheet1 (2)Idea CircleSubscribers(Mn)Revenue(INR Mn)IRIS Rev Uplift(INR Mn)Inc Revenue*(%)Maharastra15.292,86947.602.50%Gujarat8.381,39323.003.10%UP West10.651,48236.804.20%Mumbai2.8770119.505.50%Andhra Pradesh10.291,79412.001.20%Total of IRIS Circles47.498,239138.902.80%

Idea - All India115.9718,805% IRIS Coverage41%44%

- Inc Revenue = Revenue Uplift of Taker Group Normalised over Control Group- Calculated based on revenues from subscribers having >3 months age on network

Sheet1Activity Status(1st month of IRIS launch)Current Status Test launches 25 Tests/month 100+ Tests /month Broad Launches 25 Broad launches /month 150-300 Broad Launches /month

ActivityEstimated TimeKey EnablersInitial StatusCurrent StatusSegment profiling & KPIs4-6 hours15 minsSAS & Excel Tool SMS/OBD scripts for communication4-6 hours1 hourScript Builder ToolSegment cuts & holdout generation12-14 hours4-6 hoursSAS process flow Control & Target group generation3-4 hours1 hourSAS stratified sampling toolCommunication base4-6 hours1 hourSAS program / Excel file splitterImagine configurations15 mins/promo5 mins/promoSkilled ResourcesBase upload for Imagine5 mins/promo1min/promoExcel file splitter tool Communication Calendar4 hours60 minsExcel tool for calendar & SMS/OBD optimisation

Sheet2Revenue StreamCategoryVerticalPortfolioPrepaidPostpaidVoice> 3 monthsTo be developed< 3 monthsTo be developedTo be developedVASRBTTo be developedTo be developedTextTo be developedDataHandheldTo be developedTo be developed

Sheet3Growth PlanFY'12FY'13No. of Circles514Subs Coverage41%88%Rev Coverage44%93%IRIS Rev UpliftINR 633 mnINR 2387 mnInc Revenue through IRIS2.80%>3.00%

ApproachBasePrepaid Subscriber BaseAge on Network> 3 months< 3 monthsSegmentationHigh Usage(Super+, Super & Regular)Low/ Intermittent Usage(Casual, Incoming & Zero)New SubscribersOrientationRevenue-ledRetention-ledHandholding-ledProgrammes- Boost Usage- Control Dip-In-Usage- Customers Engagement- VLR presence- Customers Engagement- VLR presenceMeasure of PerformanceRevenue UpliftTake RateTake Rate

Sheet1Segmented U&R

Revenue StreamCategoryVerticalPortfolioPrepaidPostpaidVoice> 3 monthsTo be developed< 3 monthsTo be developedTo be developedVASRBTTo be developedTo be developedTextTo be developedDataHandheldTo be developedTo be developed

Sheet2Sr NoCircleIRIS93% of Idea's All India Revenue (ie INR 217 bn) to be covered by Mar-131Maharashtra & Goa2Gujarat3Uttar Pradesh (West)4Mumbai5Andhra Pradesh6Madhya Pradesh & ChhatisgarhTo be developed7KeralaTo be developed8Uttar Pradesh (East)To be developed9PunjabTo be developed10KarnatakaTo be developed11DelhiTo be developed12HaryanaTo be developed13RajasthanTo be developed14Bihar & JharkhandTo be developed

Sheet3

Chart123232.525.5

Sheet12323.02.525.5

Chart10.00210.950.950.00220.960.960.00240.970.970.00250.980.980.00280.990.990.00310.9950.9950.00360.9990.9990.00380.99950.99950.950.00150.950.960.00160.960.970.00170.970.980.00180.980.990.0020.990.9950.00220.9950.9990.00250.9990.99950.00270.99950.950.950.00110.960.960.00110.970.970.00120.980.980.00120.990.990.00140.9950.9950.00150.9990.9990.00180.99950.99950.0019

Y series 1

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Documents

Customer Analytics in Telecom.pptx