E-Tail Genius was selected to work with an international telecommunication company. The company has 3,5 million products and offers services for mobile, cell phone and internet.


The challenge

Companies with a large customer base and many different product-market combinations have a challenge. A lot of data has been built up over the years and it is complex to find out which customers are loyal and which potentially have more potential to look at (up-and cross-sell opportunities).

Cross-selling and upselling are strategies to earn more revenue from existing customers. Because driving revenue by retaining existing customers is the name of the customer success game — and strategies that can drive even more revenue — like cross-selling and upselling — have huge ROI.

It’s 5-25X more expensive to acquire a new customer than it is to retain an existing one. And when you do retain a customer and make him loyal, they’re more likely to spend more and purchase more frequently.

The goal was to develop a model that determines the parameters for loyal customers to enable management to invest in the right clients and instruments.


The solution

We first observed that customer groups have a significant different customer lifetime value different parameters to become a loyal customer. Through a combination of internal expertise, local data and Artificial Intelligence an accurate prediction model was developed to determine in which instrument should be invested to increase the customer lifetime value and customer satisfaction.

Often, AI systems make decisions, but end users are in the dark about how conclusions were reached, and if challenged the systems themselves can’t provide any reasoning retrospectively. The Genius Platform provides much-needed clarity to understand how and why a decision was made. The end user can follow the decision making process of how the predicted orders are calculated and why this investment is a good decision.


When using the customer optimization tool:

  • marketeers are able to make data-driven decisions for which customer group which investment is needed to optimize the customer satisfaction;
  • the finance department is able to increase the ROI of their investment. With the same marketing budget, more customer satisfaction and revenues are achieved. ;

Genius’ ability to explain its own actions is particularly important to this project, because all the different stakeholders should understand why it’s a good decision to invest in a particulier instrument.

This new tool is expected to increase the customer lifetime value and make the marketing revenues more effective.  


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