In the current market scenario, the telecom industry has already established itself as one of the most significant sectors in the world. With the telecom industry changing at a breakneck speed, it has become crucial for telecom services providers to improve their core business processes by zeroing in on strategies that have a direct impact on the bottom line. Thus, companies in the telecom services sector can leverage marketing analytics tools to access the data and make effective marketing decisions. Additionally, with software-as-a-service continuing to witness high demand in a lot of sectors, telecom industry players will need to take advantage of this development by improving their data infrastructure. As customers are more empowered, and dissatisfied customers flock to competitors.
It becomes crucial for companies in the telecom industry to leverage marketing analytics tools to know their customers as well as their business to secure the efficient transformation of data into insights and create a competitive advantage in terms of targeting and retaining their customers. For conglomerates looking to quantify the impact of marketing spends, it becomes imperative to associate with companies that have experience in offering effective marketing analytics solutions.
Over the last 25 years, the Indian telecom sector has emerged as one of the leading potential markets globally and has witnessed rapid growth. There have been dramatic changes in the telecom industry in India in the last few years. The two major factors behind setting the stage right for the evolution of this sector are technological innovations and regulatory changes. The telecom industry in India was liberalized in 1994, with the advent of the National Telecommunications Policy or NTP. The deregulation and liberalization of the telecom industry in India have led to its spectacular success. But with success comes responsibilities and with responsibility comes challenges. So, there are lots of challenges which the telecom industry in India is facing, especially with the advent of trends like digitization. A few noteworthy ones include:
Key Challenges Faced by the Telecom Industry in India
Adapting to technology
The mobile operators need a spectrum to provide access to enhance performance but it is a scarce resource. As compared to other countries, in India, the amount of spectrum available for commercial use is quite low. The practice of the government to auction spectrum at an exorbitant cost makes it difficult for mobile operators to provide services at a lower price and at reasonable speeds. This discourages adoption and usage. However, the launch of Jio has helped to some extent to overcome this challenge. But there is a long way to go.
Lack of automation
Sales teams in the telecom industry in India continue to rely on largely manual processes to collect intelligence on prospects. This process needs automation since it’ll provide intelligence in real time. Without this information, teams may expand sales and resources in competitive markets where termination would not be effective, locations where serviceability is not aligned, or may not participate in the market until it is too late.
There is a need to make more and more content available in all the regional languages. Additionally, the content should be focused on addressing the local problems. Today, mostly the content that is available on the Internet is in English, which is still spoken by a small fraction of the people in India. The experience of using the internet or browsing is not a pleasant one on the small screens of a mobile phone. So, mostly the usage is restricted to chatting on applications such as WhatsApp and playing games. However, reading documents on mobile phones is still difficult. Therefore, it is highly unlikely that mobile phones will completely be able to replace laptops, desktops, and tablets. This is one of the major challenges facing the telecom industry in India.
To Know more about the challenges in the Telecom Industry in India
What the Client Wanted
Quantzig’s robust telco analytics solution helped the client improve their communication with the customers, understand their needs, and their opinion on the performance of the telco company. This guided the client in reshaping their business module into a more customer-centric business strategy. The telco analytics solution, which included an analysis of the salesforce, also uncovered new areas of investment in the competitive market of telco systems, which consequently maximized their EBITDA margin.
Global Telecom Industry Overview
The telecom industry features internet service providers, cable and satellite companies, and wireless operators who facilitate easy and fast mode of communication via the phone or the internet. With developments being made in every stratum of the society, the telco systems market has witnessed exponential growth in all terms. However, the market growth of this sector is highly influenced by the dynamic technological trends. Hence, to stay afloat in this dynamic market, the telco company should adapt to the changing trends and deliver their core services in accordance with consumers’ demand.
Telco Company Challenges
Emergence of new data vendors: The trend of digitalization has been cashed in by scores of enterprises who are offering a wider variety of data services; thereby, thinning the line between a telco company and technology providers. In order to stay afloat in the competitive telco systems market, companies are allocating more resources to develop newer telecom products, which is subsequently resulting in depleting profit margins.
Integration of the IoT: IoT is predicted to be the next big thing in the communications platform, which will connect about 21 billion devices by 2020. This, in turn, will pose an immense challenge for a telco company to render its platform functional to accommodate IoT.
About the Client
A well-known telco company offering telephone and data communication services across the globe.
The telco company was challenged with unmet sales target with their newer product portfolio across certain regions. Even after executing a major brand campaign, some of the products failed to appeal to the digitized customers. In addition to this, the telco company required better visibility of the telco systems market ecosystem to expand their product portfolio in a profitable manner.
Summary of our salesforce analytics engagement
To know more about how our salesforce analytics solution helped the telco company
Quantzig’s telco analytics solution offered detailed insights into real-time performance metrics which helped the telco company in remodeling their inventory into a more scalable product portfolio. It guided the company in adopting cost-effective strategies to create and market products which ensured maximum sales with minimized inventory and production costs. Reduction in production expenditure gave the telco company liberty to invest in new and lucrative areas, where according to Quantzig’s salesforce analytics experts, the products were in high demand.
Salesforce Analytics Solution Insights
Companies offering telco systems can leverage Quantzig’s salesforce analytics to identify performance indicators and important metrics for organizational growth. Our solutions highlight growth opportunities that help the telco company to improve the sales performance of their products. Telco analytics also helps to bridge the gap between customer’s expectations and a telco company’s vision while marketing the product. It also offers step-by-step analysis of the company’s sales data and helps to devise accurate sales forecast business models that help in revenue generation and brand scalability in the hyper-dynamic market for telco systems.
To know more about how our salesforce analytics solution helped the telco company
What the Client Wanted
Effectively allocate their marketing spend by optimizing marketing strategies.
The solutions offered by the experts at Quantzig enabled the client to quantify the impact of their marketing inputs on their overall market share. This engagement entailed the implementation of a robust marketing mix model to help the telecom industry client understand the impact of marketing inputs on sale.
Overview of the Telecom Industry
The dynamic and competitive nature of the telecom industry signifies that it is headed for a big shake-up. In the long run, telecom industry players are expected to witness new challenges and threats to telecom longevity. Moreover, the rapidly changing telecom industry landscape has given rise to new technologies and industry standards. Whether big or small, telecommunication is an essential factor in business operations. The telecom industry is further broken down into two subsegments, which includes wireless telecom services and diversified telecom services. Wireless telecom service providers are those firms that offer cell phone services; whereas, diversified telecom services include providers of both wired and wireless integrated telecom services.
However, players in the telecom industry are currently witnessing several challenges, it includes- the dynamic nature of the mobile industry, compliance and regulatory issues, and security of data being transferred over the network. It is essential for players to tackle such challenges whilst staying abreast of the telecom industry trends. Therefore, to stay afloat telecom industry, companies must adapt to such changes and invest in developing sustainable solutions that support technical innovations and consumer preferences.
Telecom Industry Challenges:
- A drastic decline in voice revenue: With rapid changes in the way people communicate, text and VoIP are now dominating the telecom industry. As a result, voice traffic has decreased drastically over the years, leading to a sharp drop in voice revenue. Therefore, to gain a competitive edge, telecom industry players must focus on providing value-added services to retain their clientele.
- The impact of IoT: The evolution of IoT based smart devices has resulted in a massive growth in the connected devices sector. This is, in turn, is generating trillions of new data sets which ultimately has to be handled by the network service providers and telecom industry players.
About the Client:
A telecom industry major, offering personalized telecom services to players across industrial segments.
To estimate the impact of their marketing efforts, the client – a telecom industry major – approached Quantzig. The client wanted to leverage Quantzig’s vast experience in telecom analytics to their benefit and devise an effective marketing mix model to better understand the impact of their marketing campaigns across their business units.
Benefits of our telecom analytics solution
To gain in-depth insights into our telecom analytics solutions
With the help of Quantzig’s vast expertise in telecom analytics, the telecom industry client wanted to gauge the effectiveness of their current marketing mix model and gain comprehensive insights into ways to enhance their strategies. The solutions offered by our telecom analytics experts also assisted the telecom industry client to enhance brand value and awareness by persuading customers to upgrade to their services. This also enabled them to devise audience archetypes and establish greater control over the existing customer base.
Marketing Mix Solution Insights
The marketing mix solutions offered enabled the client to enhance their ability to quantify marketing effectiveness with regards to – ROI, incremental sales, and other such contributions. A detailed review of their marketing mix model and techniques also enabled them to stay up-to-date with the changing market trends. Furthermore, with the help of marketing mix solutions, the client was able to cut down on their marketing dollars by optimizing their campaigns.
To know more about how our marketing mix solution helped the telecom industry client
What the Client Wanted
The telecom industry client wanted to measure, manage, and analyze their marketing performance.
The client better understood the customer behavior.
Summary of the global telecom industry
The global telecom industry primarily engages in operating and providing access to amenities in terms of voice, text, and data. Businesses in the telecom industry are increasing their focus on redefining their current business models to gain a competitive edge over the other competitors. Additionally, to deal with the issue of minimal revenue growth and tightening profit margins, telecom industry players are revitalizing their operations and reducing complexities to improve the quality of the services rendered and encourage commercial offerings. Factors such as the affordability of services and the rising demand for high-speed internet facilities is expected to further contribute to the growth of the global telecom industry.
Decline in the voice revenue: In recent years, there has been a gradual decline in the way of communication from the traditional voice and text to internet messaging. With the presence of Wi-Fi, the use of internet messaging applications has increased; thereby, showcasing a radical decline in the voice revenue.
The rise of 5G: In today’s competitive environment, the telecom industry is witnessing the entry of 5G service providers. With 5G services offering ultimate blazing fast browsing experience as compared to the current settings, prominent players are under pressure to offer such services to meet the target requirements. This is expected to be a challenge for the traditional service providers who specialize in offering 4G services.
About the Client
The client – a leading telecom industry player with an annual revenue of over USD 30 billion.
The telecom industry client wanted to gain insights into the customers’ preferences and perception about their new products. With the help of marketing analytics, the client also wanted to seek ways to monitor new marketing campaigns and understand the overall sales performance. Furthermore, the client also wanted to understand the marketing trends and measure the impact of such trends on the industry’s growth prospects.
Summary of our marketing analytics engagement
To gain in-depth insights into our analytics solutions for telecom industry players
With the help of marketing analytics, the telecom industry client determined the true ROI of their activities in terms of social media and email marketing success. The client also re-prioritized their brand offerings and launched new products in niche market segments to establish their presence in the EMEA region. With the help of Quantzig’s marketing analytics, the client also diagnosed deficiencies in their advertising channels and accordingly made adjustments to strategies to enhance their overall marketing efficiency.
Marketing Analytics Solution Insights
Quantzig’s marketing analytics helps firms in the telecom industry space to better understand customer behavior across multiple platforms and make better use of their resources to make marketing main-stream in niche regions. This can further help companies to measure and augment their marketing activities and streamline their efforts to improve overall sales performance.
To know more about how our marketing analytics helped the telecom industry player
What the Client Wanted
Deploy customer churn analytics-based solutions to study and capitalize on customer behavior.
Leveraging customer churn analytics helped the client to identify the drivers that contributed to customer churn. This engagement entailed the implementation of analytics-based solutions to scrutinize, understand, and capitalize on customer behavior. It even enabled them to develop a customer churn model that precisely tracks deviations in customer behavior.
Overview of the Telecom Industry
Data and analytics are key factors that have transformed many industries globally. It not only acts as a tool to cut down costs and enhance customer experience but also helps drive future growth. Also, digitization has played a major role in improvising business functions across industries and the telecom industry is no exception. In fact, it enables organizations to reimagine their business functions and systems, and future-proof their businesses to withstand the growing competitive pressure.
Moreover, the growing need to deliver a superior customer experience has proven to be a critical driver for telecom analytics in the telecom industry. Telecom analytics enable telecom firms to understand the modern customer’s needs and help personalize services in real-time.
However, to gain a stronger foothold in the industry, telcos have to focus on providing holistic services. Implementing innovative market trends helps leverage the efficiency of services. Quantzig’s customer churn analytics is one such solution that aims to change the way the telecom industry functions.
Telecom Industry Challenges
- Ongoing regulations in the telecom industry: Telecom industry players have been facing many regulatory challenges owing to the complexity of the surrounding environment. Leading telecom firms have also started embracing such regulatory pushes to turn them into customer-focused benefits.
- Offering personalized customer experiences: Enhancing customer experience is the key to improve brand loyalty and profit margins. To do so, telecom companies need to gain detailed insights into the customer’s journey and understand the various aspects affecting their behavior.
About the Client
A leading player in the telecom industry.
To identify customer behavioral patterns and develop a reusable customer churn model, the client – a leading telecom client – approached Quantzig. The client wanted to leverage Quantzig’s vast experience in customer churn analytics to their benefit and gain actionable insights to capitalize on customer behavior.
Benefits our customer churn analytics engagement
To gain in-depth insights into our customer analytics solution
Quantzig’s customer churn analytics solution helped the client to develop a reusable churn model based on the customer’s behavioral pattern. The customer churn model benefitted the client in numerous ways and enabled them to take proactive measures to reduce customer churn. It also assisted the telecom industry client to devise and test the churn score and key drivers based on each customer’s propensity to churn.
Customer Analytics Solution Insights
Customer analytics is gaining extensive applicability in a number of industry domains and are poised to witness wide-spread adoption in the coming years. Also, with the innumerable challenges that have unfolded in today’s rapidly changing telecom landscape, it becomes crucial for telcos to predict customer churn and devise appropriate telecom analytics based business models that offer real-time insights into customer behavior.
To know more about the benefits of devising an effective customer churn model
The telecom industry has been going through rapid changes. The advancement in technology and the rise of new platforms such as WhatsApp, Skype, and Facebook have drastically reduced the traditional profits earned by telecom companies from voice calls and SMS. In this digital era, companies in the telecom industry are fighting hard to prevent themselves from becoming mere data channels. One way out for players in the telecom industry is to build up an open platform that can attract participation from hardware providers, end device suppliers, content developers and end users. To stay afloat, the telecom industry companies must adapt to the changing needs of the customers. Failing which they will find themselves threatened by other players in the market who will grab the opportunity. Furthermore, in order to maintain their revenue stream, telecom companies must identify new and innovative solutions whilst providing customers with the existing key services. Here are some fresh challenges that companies in the telecom industry will have to endure this year:
Increasing financial overhead
Today, telecom companies have millions of subscribers, a variety of new products, and bundled and customized solutions. This makes the operational support services like order fulfillment, customer care, service configuration, and billing increasingly complex. Ergo, the cost of handling these operations require resources and different tools, thus, increasing the financial overhead.
The rising rate of security threats powered by new technologies has become a major concern for operators in the telecom industry. So, several operational and technical innovations are needed for telcos to meet customer expectations of complete system security from network till the device level. Furthermore, telecommunication providers need to make upgrades to their IT and connectivity infrastructure and focus on providing data and voice services that are high quality, reliable, and affordable.
Competition from OTT services
OTT services, especially in the case of messaging apps, have been stealing a great deal of revenue from telecom companies. Due to this, the average revenue per user (ARPU) of telecom companies have seen a declining trend throughout the past decade. If this trend continues, chances are that the SMS services provided by telecom companies will soon completely shut shop. Also, OTT providers are starting to provide voice call services, which makes the problem even more significant for players in the telecom industry.
Impact of IoT
Another important telecom industry challenges to be prepared for this year is the rise of Internet of Things (IoT), which is leading to the explosive growth of the connected devices market. This is putting telecom companies in trouble as the integration of IoT requires a greater level of connectivity and data flow from the underlying platform. It becomes highly challenging for firms in the telecom industry to develop a functional platform that can support such IoT ecosystems.
5G technology is expected to roll out by 2020, and it comes with an array of advantages for both users and the providers. But interestingly, 5G technology is also one of the biggest challenges that companies in the telecom industry are going to face. This is because even non-telecom companies are slowly planning to venture into this technology. Also, numerous players in the telecom industry are still catching up to the 4G technology as they are still stuck with 2G and 3G technology.
To know more about the opportunities and technology innovations in the telecom industry