… for a UK telecom company via pricing elasticity analysis
Business Challenge
- A UK telecom company wanted to estimate the potential impact of reduced outgoing mobile rates on revenues and margins
Analytics Approach
- Two comparisons were used to estimate usage at different price points (for each time of day bucket)
- Client’s usage for outgoing landline and mobile calls
- Client with BT on mobile usage and pricing
- Usage at various price points and the optimal price points (for maximizing margins) were estimated
Impact
- Client adopted the recommendations and lowered their outgoing mobile prices during the week and increase their rates during weekends