MCI Communications Corp is quietly using data warehousing to target key long-distance customers that are unlikely to flee to the enemy. The company told Reuters these customers are looking for advanced services, preferably in a package, but have hitherto been hard to pinpoint. The company has spent tens of millions of dollars and many years to develop its data warehouse, but said it is a hidden asset against money wasted marketing and selling to people who then switch long-distance providers, or churn. The company reckons it has cut its promotional spending for customer sign-ons by 70% from a year ago. It said its third quarter results on Tuesday showed the benefits in the business and data markets that account for two-thirds of MCI’s total revenues, but it is early days to see much improvement in the consumer market.
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