Customer

Profile Enrichment
using analytics for Telcos
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01 EXECUTIVE SUMMARY
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CUSTOMER
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Customer profiles are a great way to
help define the ideal customer. For
telcos, customer profiles are a PROFILES ARE A
comprehensive representation of
the typical users of a product or COMPREHENSIVE
service. The focus on wants and
needs from a customer perspective
REPRESENTATION OF
makes profiling an attractive option THE TYPICAL USERS
for telcos to make marketing
decisions and target communication. OF A PRODUCT OR
SERVICE.
Profiles begin life from the data
generated by the interaction of
customers with the telco’s various
touchpoints (site, shop floor,
customer care etc.). They are
created by mining through the
huge data sets and harvesting
insights and hence they are only as
good as the data they originate
from. This gives rise to a question
of ‘how much’ of a customer’s
profile is enough to build
communication on? Basic
customer data can only generate a
basic customer profile which when
used as a marketing foundation
might not cover all the angles and
bases. Communication that leans
on basic information such as a
customer’s monthly plans and
payment histories cannot help
understand customers in the long
run and in some cases even be
counterproductive.
However, with data being
generated at every turn across
multiple sources, telcos now
possess an opportunity to tap into
deeper data sources obtained from
a host of channels and partners.
This whitepaper aims to be a primer
on customer profile enrichment
and educate telco marketers on
how multi-source data can help
paint a better picture of their
customers by enriching their
existing profiles. Also in this
discussion are the various benefits
of customer profile enrichment and
the scope of enriched profiles
beyond existing customer bases.
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02 INTRODUCTION TO
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DATA TYPES
It is imperative that we first
understand the various types of data
DATA CAN BE
that come into play in data BROADLY
marketing ecosystem. Data typically
can be classified based on its point CLASSIFIED AS
of origination relative to telco. Ergo
data can be broadly classified as
EITHER FALLING
either falling under First, Second or UNDER FIRST,
Third Party information. A quick
definition of the three types of data SECOND OR THIRD
is as follows.
PARTY
INFORMATION

● FIRST PARTY DATA

First Party Data is that data which is
directly generated as a result of
customers interacting with a telco
and its associated products.
Examples could be anything from
customers’ voice and data plans,
Support history, Payment plans
and track record etc. This data is
typically generated and stored
within the confines of the telco’s
business ecosystem and is the
simplest and most direct form of
data available.
● SECOND PARTY DATA
The telecom marketing
landscape is a complex network
of channel partners,
manufacturers, and retailers just
to name a few. Data is available
with such partners is known as
Second Party Data. Think of this
data as a partner’s First Party
Data. And in the context of
telecom such data could be
anything from a particular
customer’s device preferences, to
their inclination towards offers.

● THIRD PARTY DATA

Third Party Data is that which can
be obtained from external
sources such as the public
domain or that which can be
purchased from data selling
entities. Examples include market
information, demographic data,
economic data and so forth.
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03 INTEGRATION OF 1, 2
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AND 3RD PARTY DATA
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WILL RESULT IN
AN ENRICHED
CUSTOMER PROFILE
First party data can provide
fundamental knowledge about
IT IS IMPERATIVE
customers and their basic THAT A PROFILE
preferences. But to truly leverage
the power of a customer profile, CONVEYS DEEP
it is imperative that a profile
conveys deep insights and paints
INSIGHTS AND
a wholesome picture of the PAINTS A
customers it represents. This
means enriching the profile WHOLESOME
beyond the standard of first
party data.
PICTURE OF THE
CUSTOMERS IT
Using data from various second
and third party sources telcos REPRESENTS.
can add on to what is already
known about their customers.
The confluence of first, second
and third party data can elevate
3RD PARTY 1ST PARTY
a customer profile to the extent DATA DATA
that telcos can target their
communications to fulfil the CUSTOMER
wants, needs and preferences of PROFILE

their target customer base down

to an individual level.
2ND PARTY
DATA
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04 EXPECTED BENEFITS
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Using data from multiple sources in
customer profiling enrichment has
THE GREATER
many benefits, a few of which are RELEVANCE OF THE
outlined below.
PRODUCTS AND
● Using multi source, multi-party
data, telco providers can help
SERVICES TO THE
identify new and attractive
TARGET AUDIENCES’
segments and sub-segments to
reach out their products and WANTS AND NEEDS
services to
INDUCES A HIGHER
● Telcos also receive invaluable
insight on customers’ purchasing
RATE OF
decisions and behavior and create CONVERSION
an opportunity to address them
directly through proper lines of
communication

● The greater relevance of the

products and services to the
target audiences’ wants and needs
induces a higher rate of

BENEFITS!
conversion

● Telcos can also communicate

product and service features in a
more transparent manner and
better manage their customers
and prospects expectations of
their brand
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05 HOW USING 2ND
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AND 3RD PARTY DATA
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ALONG WITH 1ST PARTY

DATA TRULY LEADS TO
ENRICHMENT
Every single point of customer
interaction can produce a deluge of
THERE IS A RISK OF
First, Second and Third Party data. THE SAME
But if telcos choose to pursue
customers purely on the basis of CUSTOMERS
their own, First Party Data then their
understanding of customers
BEING TOUCHED
becomes severely limited as WITH THE SAME
explained in the example below.
CAMPAIGNS OVER
Imagine a major telco is basing next
quarter’s customer communication
AND OVER
exclusively based on the information
LEADING TO
of customers’ interactions with their
products and nothing else (First Party CAMPAIGN
Data). With such a limited spectrum
of information, the different ways by
FATIGUE AND THE
which the telco’s customers can be
CUSTOMERS
communicated to become severely
restricted. There is a risk of the same DECIDING TO CALL
customers being touched with the
same campaigns over and over
TIME ON THE
leading to campaign fatigue and the
RELATIONSHIP.
customers deciding to call time on
the relationship.
 But if a telco could have access to
more information on what their
customers do, what they want or
don’t want there is the opportunity for
them to understand their customers
to a greater level that presently
possible. Telcos can learn more about
their customers’ behaviors, which in
turn can open up many more ways to
target and communicate to
customers. This is where second and
third party data can help as explained
below.

Continuing with the previous example,

let us assume in addition to first party
3G data such as plans, coverage and

DAT
UNLIMITED

payments, the above mentioned telco

PLANS
also has access to second and third
party data obtained from its partners.
MEGA BYTES
2G Customers’ device preferences,
accessories purchases, point of sale
information etc. can help create a
much more rounded and
comprehensive picture of the same
customer than just first party data.
The result is a richer customer profile,
with better targeting and
personalization opportunities when it
comes to communications. For
example, rather than offering a
standardized cellular plan to a
smartphone using customer, a
tailored plan offer can be created
which offers more data value to the
particular customer – something that
would be quite relevant to a user
utilizing a smart device.
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06 PROFILING
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PROSPECTIVE
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CUSTOMERS WITH
ENRICHED PROFILES
DATA
While enriched profiles are an
excellent tool to better understand
ENRICHED
existing customers, they can also be PROFILES CAN
used to acquire in-depth knowledge
about prospective customers. ALSO BE USED TO
Campaigns that run on the existing
customer bases generate valuable
ACQUIRE IN-DEPTH
intelligence which is the first step in KNOWLEDGE
understanding prospects. The
following sections elaborate on how ABOUT
to reconcile the learnings from
existing customer campaigns and
PROSPECTIVE
extrapolate the knowledge to form CUSTOMERS.
enhanced prospect profiles.

1. STARTING WITH EXISTING

CUSTOMERS
Reaching out to prospects requires
telcos to first master the art of reaching
out to their existing customer bases.
Typically, First Party Data intelligence
empowers telcos to acquire a
comprehensive knowledge of their
customers’ wants and needs, which can
be used to further fine tune segments
and create communication strategies
and campaigns that leverage the various
customer engagement channels.
2. BEHAVIORAL MAPPING
Campaigns generate huge amounts
A B
of customer information and insight.
Currently running customer
campaigns give rise to a host of
learnings which can be extrapolated
to the raw prospect base. For
example, if a customer in a specific
age group, falling under a particular
salary bracket has a preference for a B C
premium telco plan, then it is highly
logical that a prospective customer
with the same attributes could
potentially favor the same plan.
Further clarity and fine tuning can
be achieved by superimposing
Second and Third Party Data such
A C
as typical devices preferred by the
demographic and average monthly
spend on mobile communications.
The characteristics and behaviors
can be mapped to the prospect
base using ‘Look Alike Models’ and
White Space Analyses’.

3. TESTING
With the target audience and their
characteristics established,
personalized communication and
messaging follow. Multiple versions
of campaign messages with
variations in visuals, text and call to
actions are created with the aim to
resonate with the targeted
prospects. The variations are sent
out and are kept track of for
responsiveness.
4. FINAL VERSIONS
By continuously tracking a prospect’s
campaign responses, the optimal
lines of communication are identified
TELCO
for the prospect segments with
similar attributes and characteristics
to the existing customer base.
Further improvements are driven to
optimize the engagement and fine
tune the final communication to
enable the onboarding of
respondents.
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07 CONCLUDING
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THOUGHTS
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With customer needs and behavior

changing drastically, they are no
longer satisfied with vanilla telco
experiences. Prospective customers
expect telcos to attract them with
value additions such as offers,
freebies and the ubiquity of data
makes a multi-party, multi-source
data driven approach highly desirable
for those wanting to understand
customers and stay ahead of the
competition.
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08 ABOUT XERAGO
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Xerago is a new age marketing solutions company with a footprint across Asia
Pacific, now making its foray into USA. Clients include Citi, DBS, HDFC Bank,
SM Retail, Celcom, Starhub, Intel, BharatMatrimony, and a number of other
market-leading and start-up brands.

Creates
coherence to transform your marketing

Manages
your marketing programs to help accomplish your goals
Portal Management Social Media Marketing
Digital & Mobile Marketing Inbound Marketing
Xerago 1-to-1 Marketing

Measures
and analyzes the impact of your marketing

Identifies
implements and manages the technologies that power your marketing

To learn more about Customer Value Maximization and how it can help you,
contact your nearest Xerago office.

CHENNAI MUMBAI SINGAPORE USA

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