DRIVERS OF PROFITABILITY
Have A Low-Cost, High Volume-Low Profitability Problem? Dextro Analytics' Advanced Knowledge Discovery Tools Enable Telecommunication Company To Improve Profitability By Over 2 percentage points!
Telecommunication is an information-rich, and highly competitive sector. The client was a low-cost telecommunication provider facing significant pressure to improve profits-while maintaining their competitive price structure.
BENEFITS
PROFITABILITY
Foresights from advanced analytics helped to identify drivers of profitability and services that were draining profits.
PRICE WAR
Enabled organization to compete on value, not just on price.
PRODUCT OPTIMIZATION
Identified short-term and long-term customer needs which helped to re-allocate funds to revenue-generating, and profitable products and services.
THE CHALLENGE
While our client's number of new subscribers was steadily on the rise, profitability from each account (particularly B2B) was less than 4%. The client has multiple product offerings across internet, cell phone, and cable TV-but even after offering streaming services, profitability remained low.
Solution
Given the large amount of both internal and external data, Dextro Analytics formulated large team of decision and data engineers to kick-start engagement quickly. The team invested a substantial amount of time, devising a structured and strategic process of ETL and analytics process mapping. The goal of the data discovery platform was to:
1. Establish transparency by integrating complex data, and to identify the product and market gaps that drive profitability.
2. Apply transaction-level mixed modeling, by developing a holistic framework that identifies drivers of profitability-and the products needs of all customer segments.
RESULTS
1. Identified products and services that are eroding profitability, and establish a revenue generation roadmap for current offerings. Rolled out a custom solution in 3 stages.
2. Established guidelines for developing signature low-cost, yet substantially profitable new services.
3. Coached executive team on how to view profitability through Dextro's innovative optimization framework.
4. Telecommunication company now operates a competitive, results-driven, and fact-based platform that is optimized for profitability.
“Dextro Analytics helped us to see our business from whole new perspective. We were amazed by the insights that guided both our marketing and new product development teams.”
- Director of Risk Modeling
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