In the highly competitive telecom sector, understanding customer needs is paramount, especially when managing a customer base as large and diverse as Turkcell’s. With over 30 million customers segmented into just two groups—Premium and Mass—the “one-size-fits-all” approach simply wasn’t working. These segments were based solely on spending levels, failing to capture the unique needs and lifestyles of different customer types. Recognizing this limitation, Turkcell took on the challenge to move toward a segment-based management approach aimed at understanding and tailoring its offers to the diverse needs of its custom
A Clear Vision for Segmentation
Turkcell wasn’t interested in segmentation for its own sake. The company had a clear purpose: each segment would have a distinct voice, specific needs, and targeted offers, with the ultimate goal of segment-based management. This strategic focus was essential in aligning the organization and ensuring commitment across teams.
Step 1: Conducting Extensive Market Research
The journey began with an extensive market research project to identify the diverse customer segments in Turkey. Turkcell explored profiles such as white-collar workers, government personnel, farmers, retirees, and stay-at-home parents. To deeply understand each profile, we conducted focus groups for insights into the day-to-day needs and preferences of each group. Once we identified the segments, we performed sizing exercises to gauge each segment’s potential market share.
Step 2: Bridging Market Segments to Customer Data
After defining these segments, the next challenge was connecting these market profiles to Turkcell’s customer base. How could we identify a customer as a farmer, a government employee, or a stay-at-home mom based solely on their data? A dedicated team of researchers and data scientists spent countless hours exploring every possible data point that could serve as a customer identifier. Through rigorous workshops, our team developed innovative approaches to map customer data back to each segment.
Step 3: Iteration and Validation
Segment tagging required pragmatism and precision. We tagged customers to segments based on every data point available, then reviewed distribution patterns to refine accuracy. This iterative approach allowed us to validate our findings by comparing segment behaviors and market research results. After numerous refinements, we achieved a robust segmentation model that, while not flawless, provided a strong foundation and won management’s confidence.
Step 4: Organizational Restructuring for Segment Ownership
Turkcell then reorganized to give each segment its own leader with P&L responsibility. This restructuring turned segmentation into a core element of Turkcell’s strategic planning. With full buy-in from segment owners, each leader was assigned commercial targets tailored to their segment’s profile, reinforcing the segmentation’s operational impact.
Key Learnings from Turkcell’s Segmentation Journey
Our experience at Turkcell highlighted several critical lessons:
- Management Buy-In is Essential: Support from top leadership is crucial in making large-scale segmentation successful and sustainable.
- Groundwork Matters: Thorough market research and well-defined profiles are foundational for meaningful segmentation.
- Organizational Alignment: Restructuring to align responsibilities with segment goals ensures accountability and focus.
- Collaboration is Key: Close cooperation between teams—including market research, analytics, and segment leaders—strengthened the model and embedded it within the organization.
- Persistence Pays Off: Iterating with grit and dedication allowed us to refine segments to a high level of accuracy.
Turkcell’s journey shows that effective segmentation is a blend of research, analytics, and strategic alignment. If your organization is looking to leverage segmentation to drive growth and customer engagement, reach out to us to discuss how we can make data work for you.