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"Customer Value Development is a process that puts rigorous customer data analytics at the core of all major management decisions in a Telecom Operator. It develops a new set of KPIs and operational metrics that fundamentally alter the way operators go about their business,"
says Adriana Salabert, Head of CVD Unit in Delta Partners.
Operators in emerging markets today deal with major challenges related to declining growth, ARPU pressure (due to multi-SIM behaviour) and rotational churn. Customer Value Development deals with these challenges via leveraging an operator's most unique assets - the data it owns about its customer base. Detailed analysis of these data generates the insights required to optimize various commercial tactics and roll-out highly effective micro-segmented marketing campaigns.
"Obviously, a range of specific capabilities should be developed to fully unlock the potential of CVD. These relate to people and organization, systems, process and customer understanding, although measurable results can be obtained from the very beginning, regardless of an operator's starting point," says Rogier Van Driessche, Partner at Delta Partners.
"Our experience in over 20 operations in emerging markets has proven that CVD can generate 5-15% EBITDA improvement, with immediate payback," he adds.
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Posted by Rana Mesbah
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