Pricing concept and portfolio management for an internet service provider

Identification and implementation of short-, middle- and long-term measures to strengthen customer loyalty and to increase monetarization within the most valuable customer segments to counteract the increasing price erosion.

Industry sector: Telecommunications
Services: Product roadmap and customer loyalty strategy

Increasing prices and offer transparency in the market for internet access products leads to declining margins and an increasing willingness among customers to change their provider. Our client, an internet service provider with 3.5 million customer contracts, is thus looking for answers to the following questions:

  • How can price transparency and offer comparability in the core product be reduced with attractive bundle offers?
  • How can the increasing willingness to change suppliers be used to attract new customers and what insights can be gained to increase customer loyalty?
  • Which additional products can be offered successfully to existing customers?
  • Customer-centric use case analysis for the current customer base: What are customer needs along the customer journey and which offer potential for cross- and upselling bundles?
  • Analysis of switching behavior and triggers, development of a detailed customer movement matrix for the current portfolio
  • Business modelling: development of portfolio scenarios, calculation of offer components, analysis of the portfolio impact, the impact on current customers and on acquiring new customers
  • Validation of new offers
  • Summary of all findings and preparation for decision-making
  • Go-to-market: Development of an action program for marketing, IT, operations and service
  • New bundle-offers within the product portfolio based on additional customer use cases that can now be addressed
  • A differentiated customer portfolio (of new and existing customers) including a granular view on financial impacts / business case
  • Elaborated go-to-market plans for additional commodity offers
  • Better focus on customer needs, optimization of the customer lifetime value

Contact

Cordula Böhm
Cordula.boehm@gps-consulting.com
Phone +49 6172 - 4 95 56 151