With the increase of dependency on telecommunications and technology, customers find themselves unable to part ways with their smart phones and connectivity. This however poses a new challenge for Telco providers, very demanding customers. Historically, a telecommunication company would provide voice call services followed by mobile connectivity for voice calls. Number of dropped calls would measure the quality of the provider’s offering. The less dropped calls, the better the Operator measured.
Today, we find operators becoming triple or quadruple play, meaning they provide landline services, fixed broadband internet, Mobile services as well as IPTV in some cases. Dropped calls are no longer a measure of quality. From a consumer’s perspective, everything must be perfect, or they would just switch to another operator causing Churn. Here lay’s the first challenge for an operator today, high customer expectations. To put things in perspective, look at today’s toddlers. A 2 year old today has the ability to use a tablet to access videos online, and will not wait for more than two seconds for a video to load. Remainder of us, if a web page takes time to load, or a video stalls, we immediately blame the operator and could stop our browsing session causing revenue leakage for Operators.
The second challenge facing operators is declining margins. With the evolution of applications, connected things, higher resolution videos, and increased competition, we find operators struggling to maintain revenue while margins decrease.
So, how can an Operator provide best quality of service to meet customer expectations, while their year on year revenues are decreasing? Some end up cutting costs, but that as we know is a temporary solution. The answer actually lies within operators themselves. In the past years, we have seen the revenue move from Operators to Over The Top (OTT) players, the likes of Google and Facebook. It is said that for every $10 an OTT makes per user, the operators revenue is at 10% of that. OTTs have mastered the use and monetization of Data, and that is where the secret lies.
Operators have a wealth of data from their customers, arguably higher value data than what an OTT receives. That is due to the fact that the Operator’s data is tied to a customer, and tied to their real information, demographics, billing and so on. The figure below shows a number of data sources an operator currently would have:
With this data, Operators should look at new revenue sources, such as targeted marketing, to utilizing this data for predictive churn reduction. Operators with this data can up-sell and cross-sell more effectively. What is essential for Operators is, to define this data, harvest it, and properly correlate the different data silos to come out with meaningful conclusions to act upon. More details can be found in our Telecom Solutions Page.
Let us go through high level view of one use case, targeted marketing. Telecom Operators could segment customers based on their average spend, movie preferences, daily and weekly location patterns, and so on. with that, operators can segment users more intelligently to offer them what they would need instead of spam.