Customer Segmentation in a Telecommunications Company

Client Description

A leading Israeli telecommunications company which offers a full range of telecom services.

Background

With competition intensifying and growing customers' churn rate, the company was seeking to enhance its' customers retention and improve client loyalty.

In the pursuit of customers' heart, the company had decided to examine its private sector segmentation structure.

By challenging the current segmentation structure for the first time, the company was looking to leverage its customer segmentation capabilities by raising the following hypotheses:

• Do the existing segments need restructuring?
• Are there hidden business opportunities within unrevealed segments?

Challenges

• Fully define factors that influence customer satisfaction which customers perceive as valuable & relevant
• Identify coherent, distinct and approachable segments
• Define precise parameters which characterize customers who belong to each relevant segment

How Tefen Helped

• Conducted extensive benchmark analysis of segmentation methods  in the Global Telco sector including trends watching
• Formulated main hypotheses for potential segments, based on initial analysis
• Executed and analysed a sample survey (600 participates)
• In depth analysis: hypotheses were narrowed down with statistical tools according to different criteria such as – min/max group size, unique group, identifiable group etc.
• Set clear segments with defined characteristics according to the survey analysis and company data

Results

Together, we built effective customer segmentation capabilities for the company:

• Reshaped segmentation structure: from demographic segmentation to need based segmentation
• Revealed and defined new distinctive segments
• Tighten characteristics of existing relevant segments in order to gain sustained growth

About Tefen's Strategy

Throughout years of experience, the Tefen Business Consulting Firm supported companies in dozens of strategic activities in order to achieve superior value.

The unique engagement with our clients, as well as sound expertise in large span of strategy practiced has led our clients to successfully manage strategic challenges and to achieve sustained growth. In each project, we create value to our customers by combining our experience, market expertise, and our unique "fresh thinking" approach.

Among our clients are large size enterprises as well as midsized companies, in varied industries such as finance, FMCG, Retail, industry and the public sector (government and ministry offices)