This document discusses measuring the impact of customer lifecycle management (CLM). It begins by covering market evolution and comparing traditional vs. CLM approaches to the customer lifecycle. CLM aims to prolong customer lifetime, increase wallet share, and use targeted campaigns. The impact of CLM is measured by calculating the increased revenues and lifetime from adopting CLM compared to a control group not exposed to CLM activities. This "green area" increase is quantified using a universal control group methodology assessing total base lifetime value versus the control group over quarters.

1. CLM Activities
Measuring the Real Impact
Luna Kawash

2. Objectives
• Market Evolution
•Customer Life Cycle; traditional Vs. CLM
• Measuring CLM the impact

3. Objectives
• Market Evolution
•Customer Life Cycle; traditional Vs. CLM
• Measuring CLM “the impact”

4. Market Evolution
Introduction Early Growth Growth Maturity
Penetration
Market
Evolution 60-80%
15- 20%
5-10%
• Basic voice • Basic voice • More advanced P&S • More segmented
services services/ more & segmented products
offerings products
• Very high • Mobile phone users
Market value • Medium to low value across all value
• High value
highlights subscribers subscribers join segments
subscribers
• 1-2 players • 1-2 players in the • Competition • Competition at
in the market market increases highest

5. Customer Activity Analysis – Maturity Phase
Introduction Early Growth Growth Maturity
• Basic voice • Basic voice • More advanced P&S • More segmented
services services/ more & segmented products
offerings products
• Very high • Mobile phone users
Market value • Medium to low value across all value
• High value
highlights subscribers subscribers join segments
subscribers
• 1-2 players • 1-2 players in the • Competition • Competition at
in the market market increases highest
• Micro-segments are approached with customized offerings to meet their
needs (BTLS and CLMs)
Customer • Benefiting form advanced analytics to extract value & enhance usage
activity
analysis • Micro-segments are defined and analyzed
• Advanced BI tools / professional analytical skills required from business
users

6. Objectives
• Market Evolution
•Customer Life Cycle; traditional Vs. CLM
• Measuring CLM the impact

7. Traditional Customer Lifecycle
Entry Revenue Generation Drop / Churn
Entry:
• Customer acquisition,
through channels and own
shops (push and pull, land
Revenue
grab)
• Minimum emphasis on
collecting customer profiles
and data (customer is only
a number)
Tenure (months) • Acquire then filter and
retain approach
Activity Cost L
• Dealership compensation
Success Rate on Retention H on line sales rather than
value

8. Traditional Customer Lifecycle
Entry Revenue Generation Drop / Churn
Revenue Generation:
• Revenue generation
through using services
Revenue
• Customer interacts with
different contact points ;
contact centre, recharge
platform, network, dropped
calls, billing ..... (over all
customer experience of the
operator)
Tenure (months) • Lack of Customer BI
Activity Cost H Retention:
• Loyalty programs are
Success Rate on Retention L introduced at this stage
• However, retaining
customers who had a bad
experience is expensive
especially those with longer
tenure
•One Size fits all approach

9. Traditional Customer Lifecycle
Entry Revenue Generation Drop / Churn
Drop/Churn
• A sudden change in
customer behaviour is
normally a dissatisfaction
Revenue
sign, or a bad experience
at one of the channels
• Customer with higher
tenure tend to drop or churn
if they were not appreciated
Tenure (months)
Retention:
Activity Cost H • Timely detecting drop
behavioural changes is a
Success Rate on Retention L challenge
• The retention offer is
rather expensive especially
if associated with bad
experience.

10. Customer Lifecycle Management
Entry Revenue Generation Drop /
Entry:
Churn
-Through acquisition
channel
- Customer data and profile
collected at minimal cost,
Revenue
alternative landline and
physical address can be
acquired for future win
backs.
- Line value incentives
- Data profile incentives at
dealership
Tenure (months)
L
Activity Cost
H
Success Rate on Retention
Retention effectiveness:
-Retention efforts are least expensive and most effective a this stage in
the CLT

11. Customer Lifecycle Management
Entry Revenue Generation Drop /
Revenue Generation:
Churn
- Creating an exit barrier
through customized offers
and engaging customers
with interactive activities,
Revenue
- Standard treatment across
all channels, priority on call
centre, in shops
- Customised loyalty
program, in addition to
encouraging customers to
use different services
- Prolong the life of the
customer through a
Tenure (months) consistent experience
L across all channels
Activity Cost - Enhance the value of
H inelastic price points
Success Rate on Retention - Depend on automated
scoring models that detect
Retention effectiveness: value opportunities in micro
-Retention efforts are less expensive and more effective a this stage in segments
the CLT -One size does not fit all

12. Customer Lifecycle Management
Entry Revenue Generation Drop /
Drop:
Churn
- Automated Scoring
models for droppers (24hrs
detection)
- Droppers alerts across all
Revenue
contact channels
- In non traditional approach
customers reaching this
stage should be significantly
lower than traditional
approach
Tenure (months)
L
Activity Cost
H
Success Rate on Retention
Retention effectiveness:
-Retention efforts are most expensive and least effective a this stage in
the CLT

13. CLM – Non traditional
Objectives:
Analysis -Prolong the
lifetime of the
customer
- Increase the
share of
customer wallet
Campaign Planning Measuring
success?

14. Objectives
• Market Evolution
•Customer Life Cycle; traditional Vs. CLM
• Measuring CLM the impact

15. CLM – Non traditional
Mainly ATL
ATL and
Segmented BTL

16. CLM – Non traditional – measuring impact
•The Green area is the
increase in revenues and in
life time due to adopting CLM
•Calculating the green area by
adopting the universal Control
Group Methodology

17. Universal CG
• Universe
• Total Customer Base – Customers are exposed to all ATL and BTL
activities
• Universal Control Group:
• Random Sample of the base reflecting a mirror image of the customer
attributes, in addition to a monthly percentage of the new acquired
customers.
• Customers in UCG are not exposed to any BTL.
• CLM impact:
• A quarterly assessment of the impact of the overall BTL activities
performance is measured by calculating total base LTV vs. UCG LTV, the
increase in LTV in the overall BTL /CLM impact.

18. Thank You