Price Plans - The balancing act between profitability and customer attraction
The exact calculation of expected revenues applying the consumers' behavioural use in a specific tariff is what we call tariff-simulation. By slightly adjusting such a calculation we are able to provide a wide range of possible applications.
We have successfully been using and refining our simulation methods for several years now. To verify our simulations we regularly compare our results and forecasts with the actual data delivered to us from the billing systems and data warehouses of our customers.
Profiling
As a matter of principle our simulations are based on aggregated and anonymous user profiles, which reflect the behaviour of a single consumer over a period of several months.
The aggregation ensures the balance between accuracy and computing time, the anonymity guaranties the protection of personal data. In order to obtain reliable forecasts we emphasize on conscientiously processing user aggregates and data.
Based on our ample experiences and statistic models we are able to influence a user profile in such a way that the future behaviour of a consumer regarding the use of telecommunication can be predicted and applied to new products. Furthermore the user profile can be simplified again in order to reduce calculation times.
Is There a More Attractive Tariff
The tariff simulation calculates the expected revenues of any tariff model based upon user profiles. It is possible to emulate end-consumer tariffs or tariffs of competitors as well as retail-tariffs and cost-tariffs generated from interconnection charges.
This method allows us to produce detailed analyses regarding the pros and cons of various tariff models for the end-consumer and the revenue and margin developments of the service provider. The results are available for single customers as well as for the total stock.
Approved in Operational Applications
Our tariff simulations support the final decision making regarding offers in business processes in the areas of Up-selling, customer loyalty and inbound-consulting for more than 15 million mobile telecommunications customers in Germany.
Contractors obtain forecasts for revenues or margins for one or more target tariffs as well as under the assumption that customers adapt their behaviour to the new tariff. The recommended tariffs are chosen using a complex control mechanism from the tariff portfolio of the contractor.
Another field of application is the strategic simulation of new tariffs and products in which we predict user assumptions and compare alternative products by using greater customer base data. ex eventu is already supporting several service providers in the areas of product management and pricing.