ABIBA Segmentation Profiling

8/9/2019 ABIBA Segmentation Profiling

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Abiba Systems | www.abibasystems.com

ABIBA


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About ABIBA Systems

ABIBA Offerings

Analytics Overview

Customer Lifecycle

Analytics Solutions from ABIBA

ABIBA Segmentation Methodology

Advantages of prebuilt solutions

Why ABIBA ?


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We are a Technology firm focused on being a Business Intelligence & Analytics partner of

choice for Global Corporations

We use advanced analytics tools customized to meet industry specific requirements.

Our approach

We understand the business, the business user requirements and then provide the most

appropriate and cost effective solution.

Our solution highlights

Right B.I solution

Rapid deployment for quick wins

User friendly solutions to improve end user product utilization

Lower TCO to ensure higher ROI

ABIBA Management

Promoter team have several decades of experience globally in companies in Europe,

North America, Asia and Africa

Senior management team is highly qualified with experience in management and

technology


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Products

TeleView TM

Champion TM

TIMSTM

PI Miner

ManufacturingIntelligence

BI Consulting:

BI Strategy, Scopingand Selection

BI System design/architecture

Technical and businessuser training

BI System performanceanalysis &

improvement

Solutions and Services -

3DM Approach

Datamart andEnterprise Data

Warehouse

Data Sourcing -ELT/ETL/EAI

Data Mining andanalytics

Data Management

Process improvement& workflow solutions


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Analytics is the science of examining business data to identify historic trends and

patterns, predict potential trends and to analyze the effects of certain decisions or

events.

The goal of analytics is to improve the quality of decision making in business by

gaining in-depth knowledge of past, current and future performance.

Type of Analytics :

Descriptive Analytics: It describes the distribution of the data as well as

cluster the data into more homogeneous groups

Predictive Analytics: Predictive Analytics tries to predict the value of

one or more responses in a data set


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Improved Sales

Identify segments and launch targeted acquisition campaigns

Improve the forecasting of acquisitions and plan support activities

Increased Customer service and satisfaction

Increase customer retention

Develop effective loyalty programs to improve stickiness

To analyze QoS across different segments Improved effectiveness of marketing activities

Product development based on customer segmentation

To design campaigns considering the responses of earlier campaigns

Risk management

To determine risk profile of customers and predict potential defaulters

To avoid acquiring specific segments of customers who are more risky

Enables better decision making


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Revenue

Time



Sales &Marketing

CustomerAcquisition

ChurnModeling

Campaigneffectiveness

Salesforecasting

Market MixModeling

Finance

Credit RiskManagement

Revenueoptimization

Product &segment

profitability

Operations &Network

Supply chainOptimization

Capacityforecasting

CostSimulation

CustomerServices

CustomerLifetime

Value

Loyaltymanagement

QoS analytics

HumanResources

AttritionModeling

Recruitment

StrategicPlanning

Market Entrystrategy

MarketSegmentation



Identify your profitable segments and their behaviorEstimate the life time value of your customer segments for better marketing

Identify the most sensitive customers for cross selling/up selling

Identify customers likely to respond to promotional offers

Predict the potential churn individual subscriber and segment

Identify the most risky customer segments and list at-risk customers

Identify the customers who are going to default or delay the payment

Forecast Sales, Revenue, Churn, Default and other critical attributes based onhistoric performance.

Response Modeling

Churn Prediction

Risk Models

Forecasting

Segmentation &Profiling

Return



Customer segmentation is a process that divides customers into smaller groups called

segments. Segments are to be homogeneous within and desirably heterogeneous in

between.

Need for Segmentation

Marketers are increasingly recognizing that the success of their marketing campaigns ; equally

important is to ensure they're talking to the right people and ensuring they have the right message.

Both targeting and messaging are made easier when a marketing team has the ability to segment its

audience according to meaningful criteria and tailor their communications to the attributes of this

audience segment.

ABIBA Profiler offers some of the most advanced segmentation capabilities available on the

market today, enabling marketers to create segments according to almost any combination of

criteria available in their target database.

MARKET 1 MARKET 2



Objective : A large telecom provider with over 5mn post paid subscribers, wanted to identify

potential defaulters and build effective collection strategies. It adopted an analytics

framework to develop customer segments and collection scorecard.

Methodology: Subscriber Segments were developed based on collectability and amount at

stake along with collection score card based on certain key parameters like outstanding, time

on network, historical payment behavior. Based upon the findings the telecom provider

segmented post paid subscriber base to create customer segments coupled with collection

scorecard to direct its collection strategies on specific customer groups likely to default

Results: Collections (amount collected) improved by 15% and lower default rate by 12 %

( for key segments)



Objective: To compete with other providers of mobile telecommunications in the post paid

segment, Vodafone realized it is important to know enough about your customers and to

know the wants and needs of your customers for post paid business customers. The total

number of postpaid business users (Corporate Scheme) at Vodafone is more than 800,000.

Methodology :The customers were segmented based on behavioral and geographicalvariables like average call duration, average no calls received per day, average no calls

originated per day, daytime calls, % of weekday calls, % of calls to mobile phones, average no

sms received per day, average no sms originated per day, % international calls, % of outgoing

calls within the same operator, zip codes and so on

Result: Vodafone segmented its business customers into 6 different segments. It was able toidentify 2 most lucrative segments of the 6 and came out with special market offerings for

them. This move increased the response to the marketing campaigns launched.



Objective : Volvo Cars wanted to increase its online campaign ROI.

Methodology: Volvo Cars devised a system to segment it's customers into 3 segments hot

leads, normal leads and poor leads based upon the behavioral data like pages they visited in

it's website, the time spent, the type of ads they respond to and so on. If a customer is

categorized into hot leads then he is funneled into the next stage wherein he is invited fortest drive or given a free brochure. After information is collected from the customer then

loop is finally closed with a sales pitch.

Result: This segmentation methodology helped Volvo to identify the right customers and

save costs on the brochure and increase the responsive to the market offering.



Segmentation is normally performed along with the following demographic, geographic, psychographic,

and behavioral variables

Behavioral segmentation variables include product usage rate and end, brand royalty, benefit sought,

decision making units, ready-to-buy stage, and so on. This set of variables is considered to be pivotal in

any datamining application

Demographic segmentation variables describe characteristics of customers and include age, gender,

education, occupation, income, religion, marital status and so on. Note that demographic segmentation

normally refers to segmentation with these demographic variables.

Geographic variables include various classification of geographic areas, for example, zip code, state,

country, region, climate, population, and other geographical census data. Note that this information can

come from national census data

Psychographic segmentation variables describe life style, personality, values, attitudes, and so on. Notethat psychographic segmentation normally refers to segmentation with these psychographic variables.

Past business history, Customers' past business track records can be extremely useful for segmentation.

This may include total amounts purchased, purchasing frequency, (credit) default records, (insurance)

claims, responsiveness for marketing campaigns, and so on



Data

understanding

Data

PreprocessingSegmentation Visualization Scoring

Data sample is collected from the source systems:

The sample collected is based on the data model for the particular requirement. The basic data model

is reconfigured after discussions with the domain experts of the client.

Data preprocessing for analysis:Once the samples are collected from the analytical datamart, it is preprocessed to be used in

modeling. Typical pre-processing activities done in the modeling engine are binning, example

selection, feature selectionand standardization

Segmentation:

The preprocessed data is then used for segmentation. The variables are chosen and the number of

segments are specified.

Visualization:

The segments formed can be viewed in the form of classification trees and also in the form of

dendograph.

Scoring : The model is then scored with the customer records


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Integrated solution having data handling, segmenting, profiling and analysis tools

seamlessly integrated Provides choice of display Decision Trees, Dendograph

Pre-built models for key business functions

Works on multiple OS Windows and Linux

Multiple modes of data capture

Scalable architecture Client Server and web-based deployment models


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Single Vendor One Stop shopAll software tools required for solution are provided by us.PLUS implementation and support if required.

Business user driven implementation Minimal dependency on analysts, a scarce resource in

many markets

Ease of use Customisable GUI, workflow guiding model building

High level of configurability and customisation suits rapidly changing market dynamics

Pricing flexibility In-house, proprietary solutions gives greater flexibility

Off-shore driven deployment If data can be provided offshore

Lower overall TCO upto 40% lower than other industry standard tools

Enhanced Security Features -Role-based views for all employees

Quick Deployment - organizations can simply adopt or tailor the predefined reports and

metrics in a packaged analytic application


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Abiba Systems | www abibasystems com

Documents

ABIBA Segmentation Profiling