Driving Customer Value Through Proposition Analysis

Our large telecommunications client had multiple SIM only propositions of varying contract lengths. They wanted to understand which propositions were most valuable as they assumed the longer the contract, the more value customers were contributing. Based on this understanding, our client incentivised their sales channels to sell the contracts with longer durations.

Using our Telecoms expertise and our Value Based Management software, we conducted in depth analysis to establish the value generated by each proposition. Analysis of revenue, costs, tenure, pricing, channel and customer behaviour was carried out. Our modelling found that customers who opted for the 24-month contract had a similar tenure and value contribution to customers on an 18-month contract. This was destroying value as the 24-month proposition attracted a significantly higher commission rate for all sales channels.

See how our value based modelling and analytics experts saved £4m opex.