Up-/ Cross-Sell/ Reposition
Introduction
Customers are exposed to a great amount of attractive offers every day, and knowing which customers are at risk and those who can be optimised.
Clintview identifies products and complementary options that are unfulfilled by current service plans.
The calculations are made with high precision, including key metrics such as price and usage elasticities.
Elasticity leads to an accurate prediction of change in subscriber behaviour depending on the products involved, which leads to more precise simulation results.
A powerful simulation has many input variables and elasticities amongst others are part of it.
Underestimated elasticity can be the tiny percentage that defines the viability of a business opportunity, especially in B2B offers and in markets that prove to be more and more competitive.
Price Elasticities also plays a great role in managing costs as too often, network operators forget about exponentially growing cost structures.
Too often, “unnecessary loyalty” offers and product launches cannibalize one’s own customer potential purchases and the revenue they generate.
Of course, customers will react to price changes and adopt their utilisation of services depending on the price and what price plan they are on. But Clintview considers these customers’ reactions in a very sophisticated and still transparent way and measures impacts in all dimensions of any new product line.
Modelling elasticities in scenarios
In Clintview the user can set up elasticity models in multiple dimensions (e.g. Voice national, data national, roaming voice, roaming data, football pay-TV consumption etc..
With Clintview decision functions the user can handle the exponential complexity of such models (Ex: 3 elasticity parameter values in 5 dimensions would make up to 243 scenarios to manage)
Elasticity reports
Clintview generates elasticity reports that help to determine the correct elasticity values for future simulation by reporting real Elasticity values from previous campaigns. Not only does this guarantee more precision on customer behaviour, but also a correct calculation on other KPI’s used for simulations and real business decisions.
These can be addressed by Clintview and we produce such solutions for customers with hundreds of thousands possible combinations of products and options, in thousands of scenarios.
Use Case Sample:
[COST SAVINGS] Underestimated Usage Elasticity
This is all about the costs that arise when lowering the price too much for the wrong customer segments.
- Increasing the size of data allowances
- Offering flat rates for voice (off net especially, or roaming voice packages)
- Offering large packages of national data on a high speed
- Offering better service levels (for example free phone call center access) for customer segments
Consequences:
- National Interconnect costs go up / incoming revenue descreases
- Roaming interconnecivity costs increase
- Congested networks
- Increased service costs
With Clintview the effect on usage when reducing price can be simulated much more precisely and the financial compensation to cover these costs (in form of revenue) can be determined.
For more use cases or tailored answers to your needs please contact us, we will be delighted to give you a quick and precise response.