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Cannibalisation in the Telecoms Sector

    Home Insights Other Cannibalisation in the Telecoms Sector
    cannibalisation in telecoms market

    Cannibalisation in the Telecoms Sector

    By Ibtisaam | Other, Insights | 0 comment | 14 September, 2021 | 0

    The telecommunications industry is a dynamic, competitive and very strategic environment, but is prone to a particular phenomenon. Not only do telecoms companies need to be concerned about competitors’ encroaching on their market share, their very own products may be eating into their profits! This so-called “market cannibalisation” happens when there is a loss in income when the launch of a new product displaces demand for older products. 

    A major listed South African telecoms company, faced exactly this conundrum. They wanted to know how to leverage their extensive data repository to glean insights and make better decisions based on their customers’ profile and financial behaviour, in order to mitigate this situation.

    Data wrangling, analytics, engineering

    The highly skilled MAI team wrangled, analysed and engineered the client’s customer data. Large volumes of sales data were scrutinised, after some significant wrangling. The MAI data scientists closely examined trends to gain insights into customers’ spend, reactivation and churn behaviour. The team constructed sophisticated predictive models for campaigning, for client offer targeting specifically. This enables the company to strategically structure product launches in a way that optimises profitability and lessen the impact of market cannibalisation in their telecoms operations. 

    In this ongoing project, the team is actively involved on an operational basis in the execution of campaigns, after which performance tracking and reporting are performed. The MAI data scientists have been able to implement many improvements to current systems and have automated a significant proportion of data pipelines.

    Client feedback

    The CEO of the listed telecoms company had this to say:

    “The Matogen AI team is really easy to work with and it feels like the consultants are alongside my staff, rather than separate from them. This makes it easy to bring together a business need with super-smart data scientists, which is typically where things fall apart.”

    Telecoms, market cannibalisation, telecommunications industry, marketing, products

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