issue

customer targeting

examples

How to design a business/marketing plan that maximizes the value from a recent investment in wireless spectrum
- What services should be offered (subject to FCC restrictions)?
- Who are the target customers? Are there sub-segments within this group?
- Should the client simply serve as a capacity reseller or should they offer network services to end users?
- How do the financial returns vary across the options?
Because previous end users received spectrum for free, there are no market prices available
- Given this: how should pricing levels and structures be set in order to maximize returns?
- Are there different elasticities across customer groups?
- Do customers have preferences for particular pricing structures (e.g., flat vs. variable pricing

Determine relevant customer segments/targets and design value maximizing marketing strategy
- Quantification of the question, "How much will they pay?"
- Quantify desirability of each option from customer perspective
Develop an in-market testing program which can be used to modify preliminary recommendations
Access viability and financial returns of alternate business models (e.g., network operator vs. capacity reseller)

Utilized primary and secondary research to create a detailed model of the customers' economics
- Provided an essential view of a customer's ability to pay for services
- Employed scale curves, geographic cost information, and customer survey results to determine how economics varied across customer segments
Conducted extensive surveys and interviews with members of key customer segments to determine price elasticities and customer requirements
Built a sophisticated pricing model that evaluated the financial impact of potential pricing plans and structures
- Utilized logistic regression analysis in order to quantify the trade-offs between price and volume and to determine how these trade-offs differ between customer groups
- Evaluated the financial returns of each pricing plan for all 722 metropolitan and rural statistical areas in the U.S.Used analytic and research results to design a comprehensive set of targeted marketing plans and to structure an in-market testing program
Used analytic and research results to design a comprehensive set of targeted marketing plans and to structure an in-market testing program

Dean & Company's analysis resulted in an optimal "average" price that was almost 3x what the client had planned on charging
Recommended methodology for targeting specific, identifiable customer segments with different plans resulted in financial returns that were 2x what the client had initially modeled
- Client had planned to offer a single, flat rate national plan
Provided client with a pricing tool which will enable them to adjust pricing levels and plans as initial results become available
Market sizing and opportunity quantification provided client with important leverage for negotiations with key strategic partners