Our industry experience Our capabilities Our clients Client case studies Needs-based segmentation of European mobile customers Our Client’s Challenge Our client was facing slowing growth due to a maturing mobile market and increasing competition. At the same time, it needed to meet increasingly sophisticated end-user requirements driven by changing technology capabilities. As a result, there was a clear need to focus on improving our client’s understanding of its current and targeted customers, in order to help them lower churn, improve acquisition and bring propositions to market that would result in increased revenue per user. Mercator Partners’ Action Using extensive primary research, Mercator Partners developed an actionable customer segmentation based on clearly identified customer needs for each of the operator’s markets in Europe. Key elements of the project included: primary research design and management of a large, complex customer data gathering initiative organizational coordination and analysis of the results across multiple country businesses detailed attribution to existing customer and CRM information so that the operator could better understand and serve its current customers detailed profiles for each segment that described the segment, including how they use their phone and other relevant behaviors, what media they consume, and what their values are We recommended that the client use this new customer insight to create a revised strategy based on differentiation, to develop tailored product propositions and to re-align the organization to focus on customers. The Results The segmentation model and customer insight was adopted across the European operating units and was used to: target products and marketing re-focus the organization around customers improve retention and enhance acquisition The study has created the basis on which the operator is now building new market strategies and sustained differentiation.