Can micro segmentation improve telecom customer experience?

By Tilly Kenyon
Customer micro segmentation and AI can allow marketers to gain a deeper customer understanding and transform their experience...

Personalised marketing is an important factor in trying to get the best out of your business, as it offers an improved user experience by serving relevant content. We are surrounded by personalisation every day, potentially without even realising it, from Netflix to Spotify. A personalised experience has become key to us - Accenture found that 91% of consumers say they are more likely to shop with brands that provide offers and recommendations that are relevant to them.

What is micro segmentation and how does it help telecommunications? 

Micro segmentation is a marketing strategy that uses data to identify the interests of specific individuals and influence their thoughts or actions. It allows a company to divide up their customers into smaller precise segments based on different factors such as behavioural prediction. Marketers can then directly target each micro-segment with specific actions which then maximizes the effectiveness of every contact with each customer. 

Tracking and analysing how various marketing actions affect the behavior of each micro-segment allows companies to predict the effectiveness levels of the marketing actions of each segment. 

Micro segmentation allows businesses to market specific new offers to each segment which is suited to them, rather than a ‘one size fits all’ approach. This strategy increases the chances of the consumer being interested in the offer and increases the chances of revenue. 

Can AI help? 

Artificial Intelligence is extremely beneficial in the telecommunication industry as it can improve the relationship between companies and consumers. 

Sanjog Misra, the Charles H. Kellstadt Professor of Marketing at Chicago Booth, said: 

“..Typically when we think about A.I. in the context of marketing, what we’re really referring to is this ability to get machines to learn something from large quantities of data. And in particular, what we’ve become reasonably good at is taking large amounts of data and essentially uncovering what people’s tastes, preferences, what their needs are, and then using those to build scalable algorithms that can deliver customized marketing intervention.”

AI can help marketers collect data, recognise new potential customers segments and create a more unified analytics system. It can also create more customer personalisation and precision in ways that did not exist before. 

A popular AI feature that many telecoms companies are using are chatbots. These are computer system programmes that can be incorporated into websites and social media sites to connect with online customers. They can be very beneficial to companies as it frees up workers to concentrate on different aspects of their job, and also allows customers to raise their issue or query 24/7. 

“Even in its earliest iteration, AI helped companies better understand how to be human,” says Brian Solis, author and principal analyst at digital analyst group Altimeter.

Telecommunications can definitely benefit from using micro segmentation and AI, as it will improve customer experience, which in turn should increase their profits. 


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