Telecom: 3 Ways Analytics can help you determine your customer profitability.

Typically, about 20% of customers are unprofitable, and without applying profit analytics, it’s impossible to know which customers are profitable and which are not.

Measuring traditional Customer Profitability helps businesses determine who is making them money, and who is costing them money. It goes beyond calculating margins from customer transactions and calculating potential lifetime value and can provide valuable insights into your customer behaviour and preferences, fulfilment costs and improve your customer retention.

Telecommunications customers are incredibly complex with packages, offerings and products varying greater in the cost of ownership and sales and marketing teams often being siloed to push different offers to their customer base.

Only a multi-dimensional profit model parsed by channel, product, customer, segment, and similar metrics can accurately identify the key drivers of profitability. If this profit information is not available in the financial system, BI reporting layers cannot report what they don’t have.