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Why Are Arpu and Mou so Important as Metrics of Performance

In: Science

Submitted By NebulaBlitz
Words 528
Pages 3
ARPU, average revenue per user, and MOU, minutes of use, are two units of measurements telecom companies use to measure performance. These units of measurements indicate how well a business is performing, for example, ARPU displays the amount of money specific consumers spends on products or services. Usually, APRU is used for multiple combinations of product consumption, like combinations can include voice calling, text messaging and a data plan. MOU, on the other hand, measures on average how long each a consumer uses a product or service per month. MOU permits telecoms to produce appropriate pricing based on how much the user consumes on a monthly basis. Most businesses are capable of generating packages and promotions based on the consumers demand. With this, businesses can build better packages to make it more appealing to their customers, at the same time this helps increase their revenue. Hangzhou City Branch used both the ARPU and MOU to evaluate the performance of various campaigns to better understand which campaigns were effective and which needed to be eliminated. The use of EDW and OLAP, allowed the city learned that physical outlets and call centers were the most successful channels to make sales. Incorporating what they’ve learned, Hangzhou had more employees at it’s’ call centers. This resulted in a huge increase from 2 to 30 perfect in success rate (Whang 8). The new results were then shared with HQ to decide whether to transfer this information to 10 other cities. The data developed by ARPU and MOU proved to be successful marketing campaigns, and it appropriately shifted resources to underperforming campaigns. The Jiaxing City Branch had used MOU and ARPU to monitor its customer’s behavior, and then breaking it into detailed segments, which made it easier to target users. Jiaxing differed from the other branches because it was customer-centric. Based on the response rates from MOU, Jiaxing was able to create customized promotions to appeal to different segments based on their needs. If a customer decides to leave the Telecom service provider, the company can instantly track the unsatisfied customer and call to ask what went wrong. By using the retroactive insight, the company can make changes to the product. Data collected from MOU, Jiaxing can proactively monitor customers in order to prevent them from leaving. In order to make these successful operators more knowledgeable about each customer, they were offered better packages to prevent the customer from leaving the service, thus adding to the undesirable “churn rate. Adopting these methods increased the close rate from 10 to 40 percent; this shows how effective using MOU and ARPU are used to prevent churns. By incorporating the Teradata data warehouses and OLAP software to its business structure, Zhejiang’s business had gained a crucial advantage to streamline its business process and develop smarter business intelligence. Fields in MOU and ARPU created a better understanding of customer behavior and allowed for proactive management of accounts. The use of OLAP encouraged the development of newer products, such as security, that targeted customers’ needs. Zhejiangs use of EDW and OLAP helped better to communicate, supervise, and innovate China’s mobile, fixed-line, and data products and services.

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