XL Axiata leverages data mining to speed up 4G migration

Telecom Asia Special Project Team
23 Jan 2017

Indonesia is the fourth largest mobile market in the world with 278 million subscribers. The country’s mobile data usage has been growing exponentially over past few years, as customers’ dependence on mobile apps and demand for a high-quality experience increases.

XL Axiata, the leading mobile operator in Indonesia, launched commercial 4G LTE services in Jakarta in November 2015. As the first mobile carrier in the country to roll out 4G services, XL was focusing on a gradual shift away from its 2G and 3G networks to help encourage its customers to use its 4G network. Customers can enjoy a better mobile experience and services such as HD video, thereby generating more revenue for XL from the new 4G network.

“XL wanted a user-targeted marketing campaign that targets specific groups of users, such as high-value customers, for its new high-speed 4G network,” said Huawei. “Yet the traditional method of 4G user migration based on usage and forecasts could not meet the key objectives of XL. To be competitive, XL needs an innovative way to speed up the 4G migration campaign.”

“Precise 4G User Migration” program

To do so, XL Axiata tapped Huawei to launch an innovative joint initiative, the “Precise 4G User Migration” program, to encourage its 2G and 3G subscribers to migrate to the high-speed 4G network.

The program, launched in Bandung, Denpasar and Surabaya in May 2016, provides a new way to identify potential customers who use 4G handsets but have not upgraded their SIM card to 4G USIM.

The key objective for XL is to generate revenue from the 4G migration; hence, this program requires detailed and specific subscriber data mining.

An algorithm was created based on Huawei’s innovative CEM platform SEQ to identify details of target subscribers’ behavior and footprint, which allowed XL to find out who and where the potential 4G users are. This insight allows XL to conduct precise marketing and triple its migration success rate.

Multiple targeted marketing campaigns were executed to ensure the key groups of subscribers are migrated to the 4G network.

The program consists of three approaches. First, “Precise Marketing”, which identifies who the potential 4G users are, where they are, why they haven't yet upgraded to the 4G package. To assure the success of the campaign, XL customized its marketing based on user behavior and location within the target hotspot area, sending out SMS, location-based advertising and other targeted messages to potential customers.

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