Telecommunications

Telecommunications

Situation

A TV and telecom service provider was facing difficulties to control and monitor discounts offered to the current and new customer basis; these discounts were increasing for several months (~5% per month), negatively affecting business results.

Approach

The first step was to understand for which customer segments and in which situations discounts should be offered. Quantitative analysis and field tests were developed and executed, allowing the identification of such segments and situations, showing a sizable opportunity to reduce discount offering. Several pilots were executed to confirm the conclusions and allow a safe discount reduction. Additionally, an analysis of the incentives each client facing department had for discount giving was performed, making the case for the development of a new governance system.

Results

Chart

The recommendations for a discount concession and new governance system were implemented, with significant expectations to reduce discounts (approx. 20%). Furthermore, a new incentive system came into discussion, seeking to prevent the problem from happening again.