In a constantly evolving market, migrating customers to fiber is a major challenge for telecom operators. An international operator recently collaborated with Sofrecom to enhance its fiber migration process. This project aimed to increase fiber orders and reduce the retraction rate by implementing finer segmentation and better understanding customer needs. This article details the adopted methodology and the benefits brought by this collaboration.
The project
The international operator faced significant challenges in migrating its ADSL customers to fiber. Issues included pricing margins, necessary customer works, and a high retraction rate. The current migration incentive system needed to evolve to better address these challenges and improve the transformation of old connections.
Project objectives
The main objectives of this project were:
- Increase fiber orders.
- Reduce the retraction rate.
- Better address customer issues, especially with old connections.
- Align levers, messaging, and pathways for each customer segment.
Our methodology
To achieve these objectives, Sofrecom structured its support in several key steps:
- Initial diagnosis and project sharing : The first step involved sharing the segmentation project with different distribution channels. Workshops were organized to identify barriers to fiber adoption and consider future impacts on targeting. This diagnostic phase laid the foundation for finer and more customer-centric segmentation.
- Iterative approach and in-depth analysis : The adopted methodology was based on an iterative approach: operationalizing the current segmentation and continuously improving it through in-depth analyses of sub-segments. This approach allowed for adjusting and refining segmentation based on feedback and collected data.
- Collaboration with direct marketing teams : Workshops were held with direct marketing (DM) teams to define and plan targeted campaigns tailored to each customer segment, considering key moments in their lives (fragile periods, fiber eligibility, etc.).
- Retroactive validation and Ad-Hoc analysis : The improvement of segmentation was carried out in collaboration with Data Science teams. Retroactive validations and ad-hoc analyses were conducted to refine segments and ensure their relevance. This step ensured segmentation based on reliable data and rigorous analyses.
- Involvement of distribution channels : The buy-in and involvement of distribution channels were essential for the operationalization of the new segmentation. Training and information sessions were organized to inform teams about the new practices and the benefits of segmentation. This involvement facilitated successful adoption and effective implementation of new strategies.
Benefits obtained
A detailed analysis of the context based on listening to teams and analyzing customer data, the implementation of customer segmentation considering different profiles in the customer base, and the improvement of direct marketing campaign targeting resulted in numerous benefits:
- Increase in fiber orders : The implementation of finer and more tailored segmentation resulted in a significant increase in fiber orders. Targeted campaigns and messaging tailored to each segment better convinced customers to migrate to fiber.
- Reduction in retraction rate : Better understanding of customer issues and adaptation of pathways helped reduce the retraction rate. Customers felt better supported and informed, reducing the risk of unsubscribing after subscription.
- Better addressing customer issues : Fine segmentation enabled better addressing of specific customer issues, particularly with old connections. Messaging and levers were aligned to address customer concerns about pricing margins, necessary works, and fragile periods.
- Alignment of levers, messaging, and pathways : Aligning levers, messaging, and pathways for each customer segment provided better clarity of the current system. Sales and marketing teams now have consistent and tailored tools and strategies for each segment, improving the effectiveness of their actions.
- Continuous improvement and adaptability : Sofrecom's iterative approach ensures continuous improvement of segmentation. In-depth analyses and retroactive validations guarantee constant adaptation to market changes and customer feedback. This flexibility ensures lasting relevance and effectiveness of the implemented strategies.
- Team involvement and Buy-In : The involvement of distribution channels and direct marketing teams facilitated successful adoption of new practices. Training and information sessions raised awareness of the benefits of segmentation, ensuring effective implementation and better coordination of actions.
Conclusion
The project led by Sofrecom optimized customer migration to fiber through fine segmentation and better understanding of customer issues. This rigorous and structured approach brought tangible benefits in terms of increased orders, reduced retraction rates, and improved addressing of customer issues. Team involvement and continuous improvement of strategies ensure lasting relevance and effectiveness, contributing to the success of fiber migration.
