Portugal Telecom SA’s mobile-phone subsidiary, TMN (Telecomunicações Móveis Nacionais), has selected two of SLP InfoWare’s predictive CRM applications to increase the rate of renewal among its prepaid customers.
Three-quarters of TMN’s 2.6 million subscribers use the carrier’s prepaid services, which means that even modest gains in customer retention could be a source of new revenue for the company.
But though the prepaid solution has brought well over a million new customers to TMN, it has also limited the direct contact the company has with its users, since there is very little demographic information with a prepaid account. This rules out the collection of customer information traditionally employed for retention.
The combination of SLP InfoWare’s Churn/CPS and Retain/CPS will help TMN to leverage its traffic data and identify behaviors associated with non-renewal, allowing the company to act to retain customers before their accounts expire.
“For wireless carriers with prepaid accounts, limited customer demographics and the lack of a monthly billing cycle have been the greatest obstacles to delivering first class customer service to those subscribers,” said Jerome Nadel, vice president of marketing worldwide for SLP InfoWare.
“Fortunately, SLP InfoWare’s P-CRM tools utilize a prepaid user’s calling and payment history to provide the carrier with the means to recognize each customer who is unlikely to replenish his prepaid account. Our tools then enable the carrier to present a marketing offer that is most likely to be accepted by the customer,” added Nadel.
The advance knowledge will help TMN to maintain its leadership as both the largest mobile service carrier in Portugal and the most successful developer of prepaid mobile solutions worldwide.
SLP InfoWare’s Churn/CPS and Retain/CPS are automated and scalable customer retention software applications that provide the ability to identify and approach customers that are likely to let their prepaid accounts expire. Each resides above SLP InfoWare’s customer profiling system platform which provides a core set of automated statistical, segmentation, and profiling services as well as fundamental business logic. Unlike less effective methods that rely on inaccurate models or demographics, each application uses knowledge of customer characteristics with quantified customer value to identify at-risk customers and reduce customer churn.
“SLP InfoWare gives TMN the ability to identify which customers are more prone to churn and try to retain them. That is a great addition to TMN’s efforts to increase the ARPU and make mobile phones accessible to all,” said Fernando Querido, director for services and prices management of TMN.
About SLP InfoWare
SLP InfoWare is a provider of predictive customer relationship management software (P-CRM) for the telecoms, electronic commerce and mobile electronic commerce sectors. The P-CRM platform enables marketing professionals to build precise customer behavior models and to use the analysis to automate targeted marketing operations, to retain customers and guide one-to-one marketing actions which personalize offers and product groups. SLP InfoWare software is used to predict the behavior of over 25 million customers in the telecoms and electronic commerce in the United States, Europe, Asia, Africa and Latin America. Based in Paris, SLP InfoWare also has offices in Boston, London, Frankfurt and Singapore. Gemplus, the world’s leading provider of smart card-based solutions, security and wireless applications, recently acquired SLP InfoWare.
When TMN Telecomunicações Móveis Nacionais, SA, launched MIMO in 1995, it took the mobile phone market by storm. This prepaid product was exactly what the market was looking for. It was based on a pioneering and very simple concept: ‘Easy to buy, Ready to use’, a concept soon adopted by other mobile operators. Using GSM 900 technology since 1992 and DCS 1800 radio technology since 1998, TMN is today one of the first worldwide mobile operators to commercialize high-speed WAP added value services as well as fast access to Internet over GPRS.
During the year 2000, TMN obtained APCER Quality Certification ISO 9001 - the first mobile communications operator in Portugal with all its activity certified. TMN is the market leader in Portugal, with 2.595.324 subscribers at the end of September 2000, and 45% of Portuguese market share.