Big data Analytics has made a splash in the telecom sector and is here to stay. Aside from boosting ARPU numbers, operators have turned to analytics to address various problems the market is rife with. These lie within three broad categories – increasing revenue, lowering acquisition and retention expenditure as well as reducing service costs.

Boosting revenue:

• How can the customer response rates to promotions be increased?
• How can customer loyalty be strengthened?
• How can unexploited pockets of revenue be spotted?

Reducing customer acquisition and retention costs:

• How can the effort and investment made to retain customers yield better results?
• How can the best potential customers be identified and then acquired?

Cutting the cost of service:

• How can campaign costs be reduced?
• How can communication costs be minimized without imposing a limit on the number of customers?

Big Data analytics has stepped in across the market to engage the above pain points. The enhanced awareness that is unlocked here enables organisations to develop custom value propositions that appeal to individual customer needs, and reduce the overall cost to serve. For instance, one customer in the United Arab Emirates frequently texts a friend in Oman; a tailored offer with discounted international rates to Oman can be sent to this customer. Not only are they upsold to a fresh offer but the company’s retention rate climbs.

“By considering [real-time big data analysis] in a more strategic way, [telecom network managers] will gain a better source of information for planning decisions, while opening up new opportunities for additional services.” – Peter Ekner, Napatech CTO

Informed planning spikes benefits across the board. Take this real-world instance where a Pakistan-based mobile-services provider faced 3% churn and stiff competition from 5 other competitors that offered essentially the same packages. The company utilised a combination of big data, software services and enterprise systems to market special offers to its customers precisely on a micro level to the individual. The result? Reduced churn and enhanced company reputation. This was taken a step further as response rates also increase with customers more enticed by these tailored offers.

Consider locational data, one major American company utilised this information to market to people about their underground WiFi offering in subways. As a user approached a subway entrance, they received an offer on the same, which increased awareness and consequently ‘take’ rates. The company achieved improved efficiency of marketing expenditures and was able to generate additional revenue. The realm of data offers truly unique opportunities to reach out and market to the right people in specific ways.

The telecom sector is saturated with competition at the moment, but companies can gain a competitive advantage using advanced analytics that enables them to target specific groups of customers, as well as individual customers more intelligently based on analytical models. Enter the next age of competition in the telecom sector.

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