Customer Profitability Analysis Helps a Telco Achieve a 3X Improvement in Profits by Targeting Profitable Customer Groups | Quantzig’s Success Story Offers Detailed Insights

LONDON–(BUSINESS WIRE)–#CustomerAnalyticsQuantzig is one of the world’s leading providers of advanced data analytics solutions with business units spread globally. Our advanced analytics solutions and domain expertise empower us to look for insights in complex, unstructured data sets from disparate sources. With the new digital economy creating significant disruptions and new opportunities, our global team of over 550+ analytics experts and data science professionals work with leading companies to help master digital transformation, drawing on our deep domain expertise and understanding of factors impacting business growth. Our insights have helped leading Fortune 500 companies to achieve better success rates by adopting the right technology and digital solutions to drive innovation and competitiveness. Request a FREE one-on-one platform demo to learn how our solutions can be tailored to your specific business requirements.

Engagement Overview

The rising competition in the US telecom industry has prompted telcos to analyze profitability from various aspects- customer-level, cohort-level, and channel-level. But customer profitability segmentation turns out to be a challenge due to the lack of expertise and in-depth domain knowledge required for conducting an in-depth analysis. Facing similar challenges, the client, a renowned telecommunication service provider based out of the US, approached Quantzig looking to leverage its expertise in customer profitability analysis to identify and target the most profitable customer groups.

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“Instead of relying on assumptions and intuitions to decide the range of products or services to offer or to identify the customer groups to serve, telcos must leverage customer profitability analysis to gain invaluable insights that aid decision-making,” says a customer analytics expert from Quantzig.

The Challenge

To tackle their challenges, the client wanted to analyze the net profitability of its customers and develop targeted marketing campaigns to retain the most profitable customers.

The client’s challenges spanned four key areas, including-

  • A decline in new subscription rates and a corresponding decline in average revenue per user
  • Price reduction that resulted in cannibalization of existing revenue streams
  • Increase in competitive pressure by over-the-top services
  • The growing need to rationalize marketing spend

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Quantzig’s Approach

Quantzig adopted a comprehensive three-phased approach to customer profitability analysis. The initial phase revolved around an analysis of the client’s billing and cost database, followed by an in-depth analysis of historical data sets to determine the cost incurred in supporting customers across six different sales and service channels. The solutions offered also empowered the client to-

  • Achieve a 57% improvement in service personalization
  • Develop targeted marketing campaigns to retain profitable customers
  • Retain customers and drive profits by 3X through upselling

Over the past 15 years, Quantzig has helped Fortune 500 companies solve some of the toughest business problems using a unique combination of design thinking frameworks, plug-and-play innovation accelerators, and an army of agile decision scientists. Want to know more? Contact us for a free pilot.

About Quantzig

Quantzig is a global analytics and advisory firm with offices in the US, UK, Canada, China, and India. For more than 15 years, we have assisted our clients across the globe with end-to-end data modeling capabilities to leverage analytics for prudent decision making. Today, our firm consists of 120+ clients, including 45 Fortune 500 companies. For more information on our engagement policies and pricing plans, visit:


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