1. Money for Nothing
Dr. Stefan Schwarz
Director Telecommunication, Media &
Entertainment, Teradata GmbH

2. “On average Telcos spend
approx. 27% of their overall
opex on customer acquisition
& retention!
Source: CapGemini
CapGemini TME Lab Analysis based on operator annual
reports and industry reports

3. Is this still the right thing
to do?

4. Subsidy
Retail
Commission
Post-pay
Some telcos try to act with brute force …

5. But perhaps the axe is not the best tool …
Starting in the late
1880s, the Swiss
Army Knife was used
to open canned food
and disassemble the
Swiss service rifle,
the Schmidt-Rubin
M1889, which required
a screwdriver for
assembly.

6. DISCOVERY
PLATFORM
INTEGRATED DATA
WAREHOUSE
ERP
SCM
CRM
Images
Audio
and
Video
Machin
e
Logs
Text
Web
and
Social
SOURCE
S
DATA
PLATFORM
Business Intelligence
Predictive Analytics
Operational
Intelligence
Data Discovery
Path, graph, time-
series analysis
Pattern Detection
Fast Data
Loading &
Availability
Filtering &
Processing
Deep
History:
Online
Archival
ACCESSMANAGEMOVE
UNIFIED DATA ARCHITECTURE
Business Conceptual View
Fast-Fail Hypothesis
Testing
Teradata Customer Management Cases
RETENTIONVALUE MGMTAQUISITIION
Integrated
Comm.,
Price Promo
& Subs
Avoiding
churn
inducing
upsell
Avoid
Useless
retention
Low Affinity
Products
Under-
estimated
Usage
Elasticity
Insufficient
Retention
Manual
Portfolio
Mgmt.
Product
Cannibi-
lization
CEM based
retention
Integrated
Comm.,
Price Promo
& Subs
Avoiding
churn
inducing
upsell
Avoid
Useless
retention

7. Use Case Example 1: Avoiding useless retention

8. Example 1: Churn inducing upselling

9. Avoid useless retention
0,0%
2,0%
4,0%
6,0%
8,0%
10,0%
12,0%
0
2000
4000
6000
8000
10000
12000
10% 14% 18% 22% 26% 30% 34% >38%
Numberofcustomers
Saving potential actual product compared to competition
Churnrate
Price independent churn
Price related churn

10. Use Case Example 2: Avoid churn inducing
upsell activity

11. Avoid churn inducing upsell activity
0,0%
2,0%
4,0%
6,0%
8,0%
10,0%
12,0%
0
2000
4000
6000
8000
10000
12000
10% 14% 18% 22% 26% 30% 34% >38%
Numberofcustomers
Saving potential actual product compared to competition
Churnrate
Price independent churn
Price related churn

12. Use Case Example 3: Acquiring customers for
the right/best price

13. Is your BI equipped to help optimizing acquisition
to report all acquisition costs as direct cost
adhoc
to report all acquisition costs on a
customer individual level
to forecast all acquisition cost across multi-
dimensions (channel/POS, tariff, handset,
customer segment) very precisely
to predict individual customer value
precisely for 24 months forward looking
Does your BI environment provide the ability?

14. Value of customer management opportunities
0,0%
10,0%
20,0%
30,0%
40,0%
50,0%
60,0%
70,0%
80,0%
90,0%
100,0%
0,0% 1,0% 2,0% 3,0% 4,0% 5,0% 6,0% 7,0%
Useless Retention
Underestimated
Usage Elasticity
Product
Cannibalization
Integrated Subs
& CommisionsInsufficient Retention
Manual Portfolio
Maintenance
Low Affinity
Upselling Offer
Billing errors
Overall potential calculates as 7,1% of total company revenue
Saving
potential
[% of
opportunity
value]
Value of opportunity
[% of company renue]

15. Summary & Outlook
• The value opportunities in
customer management are
still huge (perhaps bigger than
ever)
• Infrastructure/tools, use case
definitions & methodologies
exists and are proven.
• It is time to meet the challenge
and unlock the huge untapped
value in customer
management

16. Dr. Stefan Schwarz
Director Industry Consulting Telco,
Media & Entertainment
TERADATA
M: +49-173-74-88381
stefan.schwarz@teradata.com

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