Integral Solutions has deployed a data mining solution to help Indonesia's second largest mobile operator Indosat to address the critical problem of churn in its pre-paid mobile subscriber base. Churn refers to the tendency of mobile phone subscribers to switch operators. The system, which was implemented earlier this year, automates the launch of marketing campaigns by discovering segments of customer which are likely to churn, and prompting the operator to package new promotions in order to retain them.

Mr Foo: We have a unique algorithm to generate a churn likelihood score.

Indosat currently has about 20 million subscribers, most of whom are prepaid subscribers. Mr William Foo, Technical Director of Integral Solutions, said the issue of churn is critical as prepaid churn is high in Indonesia compared to other countries in Asia.

Integral Solution's AIM@CRM for Telco solution, which was designed to support the whole process of subscriber management including acquisition, growth and churn, addresses this issue by providing operators with the insights they need to proactively fight churn and acquire new subscribers, as well as to grow their existing subscriber base.

According to Integral Solutions, predicting subscriber churn requires sophisticated statistical analysis and artificial intelligence algorithms to measure and profile subscriber behaviour, phone usage patterns and subscriber characteristics. "We use over 20 key performance indicators (KPIs) to identify customer segments that are likely to churn," explained Mr Foo. Some of the KPIs include call minutes, number of short message services and the number of unique calls.

Based on the predictive churn score, Indosat can identify subscribers who are likely to churn, and activate a marketing campaign to retain them. It can also identify customer segments based on the KPIs in order to package new plans or services for the selected segment or to cross-sell new services. In addition, a comprehensive lifetime value score helps the operator to identify high-value customers and to use the insights gathered to create programmes aimed at enhancing customer loyalty.

According to Mr Foo, about 70 per cent of an operator's typical requirements can be met with AIM@CRM for Telco, facilitating shorter implementation timeframes and lower project risk. The remaining 30 per cent requires some form of customisation that will be performed to meet the requirements of the operator's specific environment.

Integral Solutions (Asia) has over 15 years' experience in business intelligence consultancy and the implementation of advanced data mining solutions. It provides extensive data-mining services, turnkey solutions and enhanced customer support which includes training and comprehensive after-sales service. Its clients range from small and medium enterprises to multinational conglomerates. They include some of the most influential companies in Asia such as Singapore Airlines, Citibank, PSA Corporation, Chunghwa Telecom, Hong Kong Jockey Club, Seagate and Hewlett-Packard. For more information on Integral Solutions, visit http://www.datamining.com.sg/.