The document discusses strategies for telecommunications companies to achieve differentiation in mature markets through advanced analytics. It provides examples of how tiered pricing plans can constrain high-usage customers and how new tariff launches can be measured. Additional strategies discussed include zero-rated social networks, happy hours for time-shifting internet usage, speed buttons, and tailored offers personalized for each customer. A case study shows how these analytics helped Orange France think long-term and already outperform main competitors.

1. ANALYTICS
Achieving Differentiation
In a Mature Market
© 2012 – PROPRIETARY AND CONFIDENTIAL INFORMATION OF CVIDYA

2. Agenda
Challenges internal/external
A complete framework for pricing excellence
Advanced analytics is a key
to create shared value
Case study: Orange France
2

3. Withdraw Unlimited!
Get More Money for Speed
3

4. Trend 2: The Impact Of Tiered Pricing—
Shake-Up At The Top
Tiered pricing plans are effectively constraining the top 1 percent of
mobile users

5. What is Needed to Consistently Create an
End To End Pricing Excellence?
Monitoring Customer
Needs
Lunch Competition
Validation Offer
Design
5

6. Measure The Impact Of New Tariff Launches – Case 1
Question 1:
How we can re-coup the risk we’re taking?
Launched in 2010, B2C Revenues (in M euro)
Generates 25% of Personal Revenues Postpay
+9%
New Postpay
after 1 year (+8)
Prepay
84 91
Value at stake was part of 84M of Postpay
monthly revenues 35 36% 39%
53
Analysis that identified opportunities to 0
24 25%
increase revenues, contributed to +10M 31 33
euros (monthly YoY) incremental revenues 2010 2011
6

7. Measure The Impact Of New Tariff Launches – Case 2
Question 2: Postpay migrations in 2009
+204%
Can we estimate the revenue we might lose? 155
120
100
53 46 51 55 50 47 46 50
37
Launched in Sep 2009
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Increase (~200%) in migrations
(commissioned commercial act)
November 2009 migrations
3 months before & after
Improving monthly commitment (+56%)
+56% Average Total Bill
Diluted in terms of total bill (-16%) -15% Average Monthly Fee
13 11
Carried over the contract life 5 7
deteriorating Operator’s performance
Before After
7

8. And There is Much More To Do With Mobile Internet
Speed buttons Sales of Service bundle EU Data Bundle
content
Charge for
Premium Content linked Worldwide
Device Bundles Storage bundle to Speed/QOS Data Bundle
Optimise Throttled
Happy hours Off peak offers Dynamic pricing
Network (bundles)
Social networks Billing Shared bundles Tiered Device
pricing Increments KB across devices Portfolio
Align Usage &
Spend Prepaid data Usage based + Refined volume
add-ons Snacking tiers

9. Zero Rated Plans for Social Networks
User traffic with an application or group of applications is not counted against
their data allowance
29% of operators sampled have these plans
9

10. Happy Hour (Time Shifting)
Encouraging mobile broadband users to shift their internet usage to off-peak hours
10

11. Speed Button
Turbo Boost or bandwidth-on-
demand option boosts their
throughput for specific uses for
a predetermined period of time.
6% of operators sampled offer a
Turbo Boost option to their
customers
11

12. What Else is Needed to Obtain a End to End
Marketing Excellence?
Monitoring Customer Automatic Customer
Needs Learnin Profile
Tailored
Real-time
Lunch Competition offers per
decisions
customer
Validation Offer Communication, Retention,
Design Messages Cross sell
12

13. Tailored Offers Per Customer
200 Ranking = 4 180 Ranking = 11
Competitive Ranking = 1 160 Competitive Rankings = 7
150 140
1st 120 1st
Bill 2nd Bill 100 Current plan
100 R1 Portfolio plans
80 Competitors plans
60 Cost
50 40
20
0 0
Pricing Plans Do not offer Pricing Plans
Offers are presented based on customer profile and preferences, value to the
operator and the competitive landscape
13

14. Retention, Cross and Up-Sell, Advertise
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14

15. Communication and Effective Message
Customer Interactions/Services
… and extra focus to generate effective
– CRM: one on one inbound message
– Campaign management
“We have already
– Better plan service “receive 100 free calls” credited your account
with 100 calls”
– Web self service
Accurate offers Improved retention by using the effect
Personalized for each customer of “loss aversion”
Perfectly timed Italian Operator
McKinsey Quarterly: 2/2010
Delivered with precision
15

16. Case Study – Orange France
16

17. Challenges That Orange France Currently Face
Competition Customers Goals
Free Mobile has acquired a market share of Advise customers on best use of services
about 4% of subscribers in France in less Differentiate from competition with services
than three months, making it one of the
fastest-growing new entrants. Become the number 1 of the customer relationship
Sale is the first stage of the customer relationship
Experience has to be thought over time
17

18. Allowing Orange France To Fulfill The Promise
Of Tariff Personalized Advice
You can save up as much as 15 euros
My bills are very per month while maintaining your
expensive regarding « better current usages.
the offer I picked up. plan » We also propose you to discover new
I would like to pay usages with our new Internet mobile
less offer
I would like to do « more for
more with my same » You can get unlimited SMS
mobile, but I don’t without increasing your bill
have a lot of money
My mobile phone is You can profit from one extra hour
vital for me and I « more for on your voice plan, unlimited calls
would like to use it more » to your friends as well as unlimited
even more to keep SMS for just a couple euros more
in touch with my per month
friends
18

19. Orange France Is Thinking Long Term, But
Already Doing Better Than Main Competitors
Jan ’11
-78%
-13%
Jan ’12
89
-12% in €, incl. VAT
80
-17%
70
66
58 60
50 49 49
30 30 29 29
24
20
11 10 10
France Belgium Swiss Germany Spain UK Slovakia Poland Austria
Source: Analysys Mason, ARCEP, 2012 Source: Orange, Cheapest offer for unlimited x-net Voice, SIM only
19

20. About cVidya
A global leader and innovative provider of Revenue Intelligence
solutions for Telecom, Media and Entertainment service providers
150 customers
– 20 out of the 30 largest operators
300 employees
Global presence in 20 locations
Partnership with the world leading vendors
20

21. End-to-End Marketing Excellence
CLTV
Churn
Monitoring Customer Automatic Customer
Needs Segment Learning Profile
ation
Tailored
Real-time
Lunch OfferImpact™ Competition
decisions OfferAdvisor™ offers per
customer
Validation Offer Communication, Retention,
Design Messages Cross sell
21

22. Personalized Video Message To Customers
22

23. THANK YOU!
www.cvidya.com