BT Cellnet and Decision Models

Customer-Driven Segmentation:

BTCellnet's Ambitious Approach To Sales And Business Planning
For Mobile Phone Services And Products

BTCellnet commissioned RS Consulting, A UK-based research consultancy specialising in IT and telecommunications, to build a comprehensive model of the potential market for a wide range of value added service products among the company's corporate Accounts. This ambitious project was designed to provide BTCellnet with a cutting edge, user friendly information platform and analysis tool for sales and business planning into the new Millennium.

The model was built by Decision Models using Microsoft Excel.

Integrating Customer-Driven Segmentation with Portfolio-Based Service Planning and Demand Forecasting

BTCellnet set four key objectives for the project:

1. To develop a new and original customer-driven segmentation for mobile communications services based on attitudes:

  • Towards the value and business benefits of mobile communications in general
  • To ways of working which necessitate or are facilitated by mobile communications
  • To the procurement and allocation of mobile phones and end user access to value added services which may become available

2. To quantify the opportunity represented by each segment within the total universe of BT Corporate Accounts (projected to end 2001) and to enable each segment market to be mapped to demographic descriptors used within the BT sales channel

3. To quantify potential take-up of specific types and performance/functionality levels of value added service (targeted both at individual mobile phone users and at corporate entities) within a model framework which enabled potential to be analysed by different combinations of segment and demographic descriptor
4. To provide practical tools for helping Account representatives to determine the most appropriate segment classification for specific Accounts and for selecting specific product packages or menus from the overall portfolio of services most relevant/attractive to that segment.

Building the model

The modelling process had two key objectives:

1. To integrate secondary market universe data with original survey data :

  • Quantify revenue impact and projected take-up volumes by service/service level option to end 2001
  • Quantify the potential for each product by attitude segment, employee category, demographic sector and BT sales channel

2. Provide a powerful, yet easy to use tool for end users to analyse, explore and explain survey data and to test different scenarios for product demand.

Built in Microsoft Excel, the model uses the powerful pivot table function to enable managers to drill down into the data by a simple 'drag and drop' process and allows users also to change key ratios and assumptions through both pre-defined drop down menus and manual entry.

Updating and Developing the Model

The model has been devised so that it can be updated in several dimensions:

  • By refining the universe data
  • By conducting new basic fieldwork on numbers and types of mobile user/mobile spend
  • By conducting new fieldwork on service product interest/preference
  • By extending the model to a new Universe eg SMEs
  • By altering some of the core assumptions eg on incremental revenue impacts
  • By building in more sophisticated price/take-up assumptions for individual products based on specific research

A Tool For Improving Sales Effectiveness and Profitability

The segmentation model provides a uniquely flexible tool for improving sales effectiveness and profitability by providing:

  • A detailed and reliable platform of data on mobile usage and mobile spend within the corporate account universe for developing business forecasting scenarios on phone penetration and applications drivers
  • A tool for projecting potential take up of different potential value-added service products' and the levels of functionality required for each product, by sales channel/market segment (and for testing the impact of alternative scenarios)
  • A basis for devising product packages/bundles and or customisable menus and for targeting these at specific segments within the universe
  • A basis for devising effective messaging about the benefits and values of mobile communications (to reinforce or change existing attitudes/prejudices)

Contacts For More Information:

Bryan Atkin
RS Consulting Limited
+44 (0)20 7627 7729

Kelvin Evans
BTCellnet MA & NP
+44 (0)772 0271 430

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