Data Driven Marketing Assingment - Assignment Example

By disaggregation, the present value of lifetime customer cash flows are seen in two main ideas: how much cash a customer pays per period and how many periods a customer pays. Customer longevity is often associated with loyalty. Analysis in Cell2cell is based on the Net Present Value (NPV) principle: Customer NPV = PV of lifetime customer cash flows - acquisition costs PV of lifetime cash flows = cash flow per period x number of period Cell2cell wireless telecom has a more formal and regular interaction with customers through their service sales points, where various issues and technical problems are resolved.

Cell2cell runs two major payment packages: post paid and prepaid payment plans. With the prepayment package, many customers who are not very interested in bills or may not be able to afford a post payment plan can enjoy the flexibility of cellular network services over easily absorbed or smaller bill packages lower than a dollar, this is an effective means of generating revenue for Cell2cell. Customers in general prefer lower priced goods yet they value quality, in line with the demand theory “the lower the price, the more the quantity demanded.

” A predetermined billing arrangement with customers on the post pay plan pronounces ease in predictability in terms of cash flow streams. Even at the prepaid level, the customer still maintains a predictable line rental fee. A reasonable amount of data is stored in the archives of Cell2cell on the numerous customers. Based on relationships, behavioral patterns, income levels, social criteria, nature of business, emotional complexities, and a number of factors, Cell2cell makes adscititious predictions on cash flow streams.

Churning is possible if total utility falls, the sum of utilities from each quantity consumed, of the goods and services provided by Cell2cell, from one to the number actually consumed. Utility denotes satisfaction or benefit, utility is essentially based on individual feelings and not on things which have objective or physical existence and it relates to a particular time. Timing for Cell2cell introduces bundling, adding new products contributes massively in cutting down churning. Model Predictions for Cell2cell - Predictive modeling support churn management by tagging customers likely to churn - Campaign targeted to the most profitable at-risk customers - Customers on high risk churning percentage should first be sorted by profitability Factors Driving Churn Telecommunication has seen considerable increase in efficiency, growth and profitability.

Growth in the industry for the players has meant fierce competition, consumers on the other hand are more and more demanding and to sustain this continuous need to be on top of the market would mean enchaining affordability and reliability. Ensuring that customer gets full services readily and without any hindrances would mean an extra cost in purchasing more powerful equipments with high speed capabilities, Cell2cell has made a substantial investment in leading edge technologies and has placed itself on a viable platform in retaining the price leader in the market.

With poor technologies, the ability to meet the demands of customers is reduced; churning increases and profitability is affected. Customers are very interested in new technologies to do away with boredom, inventing new approaches to business and offering