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How Advanced Analytics Proactively Future-Proofs Your Telco Business and Reduces Churn

You’ve spent a cool few billion on establishing and maintaining a cellular network.

That’s a pretty big investment. 

If you’ve spent that kind of money to start a network, you’re going to want to make sure you understand how your customers are using it.


Because Your Customers are humans, and human behaviour is always changing. 

And if you don’t have a strong handle on how real people are using your network, you’re going to get blindsided when there are major changes. 

Remember how voice calls suddenly disappeared and Whatsapp calling took over?

What is going to be the next big development like that?

You need to know.

Because knowing means you have the ability to adapt, adjust and innovate your business around your customers, so that you’re never left on the back-pedal.

Customer satisfaction has become more significant to maintain a strong business. 

The problem is that barring governmental services, CEO says the Telecoms industry possesses the lowest customer satisfaction scores, which in turn drives churn.

Maintaining a customer base to reduce churn should be a priority for all Telecoms. While there are many ways to manage this, the Telecom industry must work harder toward customer retention and an analytics-driven approach in such a challenging and dynamic industry.

Customer Acquisition vs Customer Retention

The majority of Telcos focus on customer acquisition when their focus should be on retention, as it is this which reduces churn.

This is because a focus on acquisition gives attention to the customer until the contract is signed, but a focus on retention ensures customers receive a consistently good experience and typically, the provider is rewarded with substantially higher customer lifecycle values.

In addition, the cost of retention is much lower than that of acquiring new customers

For example, BCE and Telus in Canada revealed that it cost them 50 times less to keep an existing customer than it did to acquire a new one.

Further, Frederick Reichheld of Bain & Company, says that increasing customer retention rates by a mere 5% can increase profits by 25% to 95%.

The question of the day, therefore, becomes, “How much of your revenue is being eroded by churning customers, and does your focus revolve around retention instead of acquisition?

Reducing Churn Through Advanced Analytics

We’ve established that customer retention instead of acquisition is key. 

While this is true in any industry, for Telecoms especially, it is critical. 

This is because unlike in other industries that can simply solicit new business, in order to acquire new customers, Telcos need to take customers away from their competitors.

But when your competitors provide exciting bundled offers, reduced prices and packages in order to lure in new business, how can you reduce churn rate?

The overall customer experience is what keeps people from so easily moving to another provider.

And the customer experience in Telecommunications especially is critical, in order to retain subscribers.

At the foundation of customer retention, is understanding who your customers are and what they value.

McKinsey reports that an analytics-driven approach to base management can help providers reduce churn by as much as 15%.

Advanced Analytics forms the basis of customer retention, and therefore reduces churn, in three powerful ways, by providing:

  1. A detailed understanding of customers
  2. Alerts of potential churns
  3. Customer segmentation

A detailed understanding of customers

Providers can only retain customers when they understand what’s important to them. In fact, your marketing activities will only be effective when they are based on the needs of the customer.

Advanced analytics tracks and manages the entire customer lifecycle, empowering providers to make the best decisions to retain customers.

The software drills down into all the details you need about subscribers: 

  • Where they live
  • How much they spend
  • What device they use
  • Which base tower they use

Advanced Analytics provides a view into customer behaviour, trends and usage patterns in order for companies to tailor effective packages, offer competitive pricing, and take action on the spot where necessary, in order to retain subscribers.

advanced analytics

Alerts of potential churns

Telco analytics software solutions provides alerts of potential churns as people stop using the service, but before they cancel their subscription. This allows providers to adapt and respond immediately in order to retain the subscriber.

Providers are able to glean information about:

  • Changes in Value Add Service purchase behaviour
  • Changes in traffic ratio
  • Changes in the most used location
  • Trend analysis for subscriber movement in and out the network

All CDRs, VOIP, LTE, Roaming, IoT, VAS and any other event record may be analysed in real-time to discover emerging patterns in the services or subscriber behaviour.

Telco analytics provides churn tracking and prevention. The real-time analysis provides alerts on usage spikes over routes and trend analysis is enabled to ensure throttling or blocking actions had the desired effect.

The question of the day, therefore, becomes, “How much of your revenue is being eroded by churning customers, and does your focus revolve around retention instead of acquisition?”

Customer segmentation

Customers want personalisation, and while providing a singular service would require too many resources, you can group customers to provide a personalised approach.

Based on specific traits and behaviour, subscribers can be placed into relevant segments to avoid customer churn. 

For example, subscribers who regularly run out of data can be offered higher data usage packs at a discounted rate, or educated about packages that may save them money.

Advanced Analytics allows Telecoms to group customers in order to achieve more effective marketing, and provide a richer customer experience


How Adapt IT|Telecoms  CDRlive assists in reducing churn

Adapt IT | Telecoms CDRlive processes 15 billion Call Data Records per day to assist Telcos to reduce churn and maximise client retention. 

We understand that churn tracking and prediction matters. We understand the impact of churn metrics, as these are critical to your business. 

CDRlive can help you do it better. CDRlive refines churn tracking and prediction – including insight into your competitors’ churn metrics.

  • Understand your own and your competitors’ churn
  • drivers
  • Provides the decline and churn drivers per segment,
  • per geographic location (This is data relating to
  • “own” against “competitor”)
  • Decrease your retention costs
  • Protect your profitability through insight-driven next
  • best action (NBA) and next best offer (NBO)

Delivering Telco analytics – accurate and complete Reliable and effective analytics through automated data health monitoring supported by proven 3GPP Compliant ETL (Extract – Transform – Load) processes.

  • Draws on all relevant network data and information, e.g. billing records, customer information and CDRs.
  • Normalized Meta Data (accurate and complete) translates into comprehensive and accurate results.
  • Automated exception handling, reporting and escalation.
  • visibility into KPI health (how current is my data?)
  • File and record sequence validation to ascertain source system’s health.

With normal BI software, you would need algorithms to translate the data into meaningful insights, but CDRlive is unique in that it automatically does that for the data right across your entire organisation.

The information obtained from advanced analytics software such as CDRlive furnishes Telecoms companies with the details needed to understand subscriber behaviour. This, in turn, allows them to adapt their offerings to suit subscribers, and therefore keep them instead of losing them to competitors.

This includes (but is not limited to) details such as:

  • How they use your network
  • What work they do
  • Where they live
  • What device they use
  • Their spend details for calling, chatting and browsing


The Telecoms industry is not known for its sterling customer satisfaction, but in order to reduce churn in a fiercely competitive market, providers should focus on retention over and above acquisition.

Understanding customers and what they desire is key to retaining them so that they don’t switch to a competitor. 

Advanced analytics turns CDR data into rich and valuable insights that empower organisations to make decisions and take action that reduces churn rate and costs associated with marketing and customer acquisition.

Explore the Power of CDR

Download your free white paper to find out how CDR is key to making effective revenue and churn decisions in the Telco industry and why call data records are the lifeblood of telecommunications.


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