What the Client Wanted
Wanted to foster long-lasting customer relationships.
Leveraged salesforce analytics and aggregated data from several platforms to help the telecom services provider to gain a blended view of their business.
Summary of the Telecom Services Industry
Technological developments in the global telecom industry take place at an astounding rate. Telecom services providing companies are always at the receiving end of various technological innovations and customer’s demands. Nevertheless, it can be said that the telecom industry is sitting on a goldmine of opportunities waiting to be explored. However, harnessing data is a major concern for players in this sector, owing to the abundance of data sources – location logs from towers, event logs, call details from network switches, and IDS/IPS alarm.
To process the data faster, telecom services providers will have to leverage advanced data analytics solutions that would help them help them to achieve accurate and timely insights. Telecom analytics ensures that the providers of telecom services have the right solution in place, which can help them harness the huge volumes of data and gain meaningful insights from them. The proliferation of technology over the last few years has made it essential to extract maximum insights from data-rich repositories to gain a competitive edge.
Telecom Services Industry Challenges
- The decline in voice revenue: The medium of communication has changed over the years. Initially, text messages and voice used to dominate the telecom industry, people now prefer VoIP and internet messaging. This has negatively impacted the revenue growth in the telecom sector, compelling companies offering telecom services to identify additional revenue sources.
- Interpreting the needs of customers: Inability to understand and predict customer preferences can be attributed to a poorly defined growth agenda. It is essential to enhance customer relationships by understanding their requirements and catering to their needs.
About the Client
A telecom industry major offering telecom services including – network services, fixed-data services, voice services, and mobile services.
To benefit from new types of revenue and ensure customer loyalty, the telecom services provider approached Quantzig to leverage salesforce analytics. The main objective of the engagement was to leverage knowledge from customer data that can help enhance customer relationships. It included datasets from several sources. Furthermore, with the help of salesforce analytics, the client wanted to offer meaningful services to their customers at various stages of their journey.
Summary of our salesforce analytics engagement
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With the help of Quantzig’s salesforce analytics solution, the telecom client enhanced their profit margins by better connecting with their customers. It enabled the client to identify essential opportunities to optimize costs across the value chain. Moreover, implementing telecom analytics offered enhanced visibility into the core operations, market conditions, and internal operations. Also, salesforce analytics helped in the identification of hidden data patterns, customer behaviors, and relationships, which subsequently assisted the client in enhancing their business strategies.
Salesforce Analytics Solution Predictive Insights
Quantzig’s salesforce analytics solutions help anticipate customer demands to offer personalized services at significant stages of the customer’s journey. In order to capitalize on this potential, telecom industry firms have to integrate telecom analytics and build their competencies to maximize their benefits. Salesforce analytics also helps companies to devise enhanced strategies to continuously engage customers.
To know more about the benefits of salesforce analytics for the telecom industry
The client: Telecommunications service provider, Size: >$80 billion in revenue, Area of engagement: Price analytics
The telecommunication industry is witnessing rapid growth, making it one of the fastest growing industries globally. A telecommunications service provider is most often a firm that provides telecom services for sending and receiving information through electronic devices. The services offered by them include text, email, fax, television, internet access, and radio.
Furthermore, telecommunications service providers offer services that are beneficial for organizations in establishing and developing a healthy relationship with customers. Also, the services offered by a telecommunications service provider help in enhancing the efficiency of data transmission.
Factors fueling the profit margins of telecommunications service providers include technological advancements, the emergence of new telecom technologies, growing demand for wireless communication, and demand for high-speed data processing. However, certain factors like high cost of value-added services and non-awareness among customers act as major constraints for telecommunications service providers.
The Business Challenge
The client, a leading telecommunications service provider with business units spread across the globe, found itself struggling to improve the pricing strategies of the organization. The client also wanted to predict the future and best prices to improve profitability. Therefore, they wanted to leverage price analytics by implementing a price change impact assessment to identify the possible factors that could be affected by the changes in pricing.
The Solution and the Business Impact
With the help of Quantzig’s price analytics solution, the telecommunications service provider gained detailed insights on the extent to which prices for their services can be improved. It also helped them develop appropriate pricing strategies to identify and prevent the gaps between current prices and those that can be theoretically achieved. Furthermore, our price analytics solution helped the telecommunications service provider to improve their pricing decisions.
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Price Analytics Predictive Insights
The complexity around pricing in today’s world presents several challenges for B2B organizations. Organizations struggle to maximize returns by making better pricing decisions without investing prohibitively high amounts of resources, time, and effort.
Quantzig’s price analytics solution helps telecommunications service providers in developing a robust pricing strategy, which acts as a catalyst for improving profitability and ensures that the brand’s price image reverberates through all marketing and promotional campaigns. Price analytics also plays a critical role in establishing a brand image as it helps them connect with end-users of their services. Furthermore, our solutions help firms to make better pricing decisions to improve overall profitability.
Telecommunication industry drivers:
Cloud offerings– Cloud-based platforms offer several opportunities for reaching out to new client segments, cost reduction, and CAPEX to OPEX transformation. It also helps in developing a digitally connected world, serving as the base for most of the social networks, OTT players, and even M2M platforms. Moreover, cloud not only enables telecommunications service providers to expand their businesses as cloud service providers, but it also fosters efficiency, as every telecommunications service provider benefits from outsourcing part of their non-core operations to external providers over the cloud.
Machine to machine and mobile money– Machine-to-machine and mobile money allow telecommunications service providers to pursue new revenue streams. While machine to machine involves machines at either end of the communication line, mobile money enables the transaction of several hundred or even thousands of Euros. However, both are considered to be major telecommunication industry forces that are expected to grow at an accelerated rate.
To know more about how our price analytics solution help telecommunications service providers
The client- A renowned telecommunication network services provider, Revenue– $2.6 billion, Area of engagement- Sales forecast
The ongoing innovations and developments are compelling the telecommunication network industry to improve their network efficiency and offer expanded services to the customers. The industry at large will witness a stipulated growth owing to the intense market competition and rising investments in new telecommunication technologies such as wireless communication and satellite. In addition, the growing concern for affordability in the services while maintaining the service quality is necessitating businesses to re-define their existing service architecture and enhance their service offerings. Along with the conventional factors, the rising number of internet users worldwide will fuel the growth of the telecommunication network space.
Some of the factors that may curtail the growth of the telecommunication network include:
- Higher levels of connectivity: Today, with the relentless growth in technology, IoT is slowly paving its way into the telecommunication network space. It is predicted that the number of connected devices is going to reach 21 billion and to sustain the growth of the technology, telecommunication network providers should scale their levels of connectivity. Moreover, this places a lot of pressure on the network providers to streamline their technical capabilities to meet the growing demand.
- Competition from other OTT services: It is estimated that approximately 2.5 billion people worldwide rely on messaging apps as compared to the conventional text services offered by the telecom This shows a radical decline in the Average Revenue Per User, where the text services are expected to die out completely. The growing presence of numerous OTT service providers is compelling telecommunication network providers to invest highly in innovations to scale their service offerings.
To address such challenges and accurately forecast the sales, leading telecommunication network providers are augmenting the need for a sales forecast solution. Sales forecast helps businesses gain better visibility into the real-time sales data and increase sales predictability through fine-tuning the forecast accuracy. In addition, a sales forecast solution can help telecommunication network providers understand the demand for the services, and shape the pricing strategy to develop business efficiency.
The Business Challenge
The client, a renowned telecommunication network provider, wanted to gain an accurate view of the sales and help them make informed decisions. With the help of a sales forecast solution, the telecommunication network provider needed to gain adequate insights into the sales performance and visualize their targets and achievements. The primary objective of the telecommunication network provider was to calculate the profits, take decisions on investments, and launch new services to the customers.
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The Solution Benefits and the Business Impact
Strategies that we recommend to improve service efficiency and enhance sales performance
The sales forecast solution offered by Quantzig helped the telecommunication network provider calculate the sales and understand the current trends in the market. Based on the historical sales data, the client was able to monitor the sales target much easier and devise an effective sales strategy to achieve the desired goals. In addition, the telecommunication network provider was able to understand the relative cross-sell and up-sell opportunities to optimize the overall sales performance. Furthermore, the sales forecast solution enabled the client to maximize the opportunity to generate better revenue.
Sales Forecast Solution Predictive Insights
Quantzig’s sales forecast solution assisted the telecommunication network provider to understand the preferences of the customers and aggregate the forecasts based on the sales interactions with customers. The telecommunication network provider was able to streamline their market efforts and improve their overall revenue by 10%-15%.
To know more about how our sales forecast solution helped the telecommunication network services provider
LONDON: Quantzig, a global analytics services provider, has recently completed their latest customer analytics engagement for a telecom services client. The growing concerns of increased capital expenditures and rising demands are forcing most service providers to upgrade their network capabilities and expand their service portfolios. Factors such as increasing disposable income, economic growth, and rising preferences for bundled services will contribute to the growth of the telecom services sector.
“Competition from third-party mobile messaging application poses a major challenge for telecom services providers. Customer Analytics will help companies offering telecom service determine customer behavior to attract and retain the most profitable customers.” says an industry expert from Quantzig.
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The customer analytics solution helped the telecom services client to assess the probability of churn to target customers with highly relevant offers. The client was also able to engage with the customers through the right message, the right channel, and at the right time.
Additional Benefits of Customer Analytics Solution
- Maximize customer lifetime value through personalized offerings.
- Leverage predictive analytics to monitor the customer usage data and develop innovative ways to reduce customer dissatisfaction.
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To know more about how our customer analytics solution helped the telecom services client
In today’s interconnected world, telecom companies are playing a pivotal in facilitating the transfer of information and communication across the globe. Rapid globalization has augmented the growth in network traffic leading the telecom companies to increase infrastructure investments. However, such investments don’t always impact the profitability of the telecom companies positively. So telecom operators have to look elsewhere to optimize their operations and increase profitability. Big data and analytics is the solution for telecom operators looking to enhance the overall value of their business. Big data has the capabilities to handle large datasets generated by the telecom operators to identify problem areas and new revenue opportunities.
Customer churn prediction
Of all businesses in the world, the telecom industry is the one which is plagued by high customer churn rates. Customers usually churn when they are dissatisfied with their current service provider or when they find better offers elsewhere. An average customer retention rate of 60-80% in the telecommunication industry doesn’t seem that impressive. As a result, telecom operators are resorting to big data and analytics to predict customer churn. To do so, telecom companies use various data sets including usage patterns, social media feedback, negative comments, and transaction history. A robust machine learning algorithm is then created to predict which customers are more likely to churn accurately. Preventive measures such as improved offers, reduced rates, and customized tariffs can then be employed to stop such churn.
Telecom operators have access to a large repository of data related to customers. With advancements in data storage and data processing technologies, telecommunication companies can store and analyze diverse data sets including customer information, device information, usage data, and location data. Big data and analytics solutions can go through all such structured as well as unstructured data sets to generate actionable insights. Various metrics and tools such as sentiment analysis, churn analysis, and clickstream analysis can be used to effectively understand the customer and personalize their experiences. For instance, based on customers needs, behavior, location, and device details, telecom companies can offer tailored products to meet their requirements.
Identify new business areas
The revenue source for mobile operators has changed significantly over the past few years. With revenues from voice and messaging drying up, data sales make up a large part of their earnings. They always need to be on their toes to identify new opportunity in such a dynamic world. Consequently, major operators are exploring new business areas including IoT integration, 5G network, and cloud computing. Additionally, telecom companies can explore new business models, which look to increase their profitability by offering location-based and event-based campaigns to identify cross-selling and up-selling opportunities.
Improve service quality
The key to improving profitability in the telecom industry is tied closely with high customer satisfaction rates. As a result, mobile operators are constantly looking for ways to enhance the quality of service. Apart from network infrastructure management, big data and analytics can help companies improve network performance and optimize capacity. For instance, operators can improve network performance by optimizing call routing and quality of service (QoS). They do so by using real-time CDR analysis and location-based analysis, which provides them insights on which location should be prioritized to improve the 4G network. Service providers can effectively plan maintenance schedule and enable proactive care with the help of big data analytics.
Telecom companies rely on big data analytics to identify anomalous and fraudulent activities. They do so with the help of sophisticated machine learning algorithms that monitor huge data volumes including sentiment data, customer demographics, usage patterns, geographic trends, and behavior data. Mobile operators can predict the likelihood of unexpected behavior and take corrective action with the help of analytics-driven surveillance. By enhancing security measures, big data analytics can help improve company profitability through damage limitations.
To know more about how big data analytics is driving the profitability of telecom companies:
Customer analytics, network analytics, CLV, automation, and big data are few tools used by telecom companies to improve business performance. Telecom companies have to look at multiple factors to implement such tools and continuously monitor them. However, profitable telecom companies look at few of such tools and focus on improvement and adoption of digitalization. Many telecom companies have reaped the benefits of going digital by increasing efficiency, reducing costs, and improving customer relations. So what are the areas telecom companies should focus on to improve their business performance?
Tips for Telecom Companies
Robust customer-analytics capabilities
Customer is king, and companies should do everything in their means to keep the king happy. However, it doesn’t mean that telecom companies should forego profits to do so. Traditionally, companies used very few metrics to segment their customers and offer customized plans and promotions. However, today, with the advent of complicated data analytics capabilities, companies can segment customers to multiple smaller groups for personalized offerings, which can considerably increase their profitability. A more precise customer profiling allows telecom operators to eliminate guesswork and implement data-driven decisions. Apart from that, customer service is another area helped by the digital age. For instance, Avaamo offers chatbots that can interact with customers for troubleshooting their issues.
Automation of order management process
The success of Amazon and many other e-commerce companies in the order management process has led the customers to demand the same speed, convenience, and accessibility in the purchasing process elsewhere. Telecommunication companies are trying to replicate the same by digitizing the order management process. Telecom companies are also using automated order management systems to capture and validate data, authorize payments, automate billing, and communicate with customers more effectively. Companies using automated order management systems have repeatedly shown an increase in business performance. For instance, a majority of the service providers have developed apps that can facilitate customers in picking their own tariff and payment method.
Digitization of customer relationship management (CRM) process
Customer churn is the biggest nightmare for any telecom service provider. Elimination of switching costs has encouraged customers to leave the service provider when desired service level is not met. This calls for a robust CRM solution to keep hold of profitable customers. Digital CRM can help companies reduce customer churn and costs; thereby, improving customer satisfaction. For instance, instead of diverting customer to call center, companies can use online forms and FAQs to help reduce the burden on the call center. It’s a win-win situation as customers get timely resolution and the company can save on call center and personnel costs.
Improving IT infrastructure
Outdated IT infrastructure and legacy systems impede companies seeking to improve business performance. As the amount of data collected by companies on customers are on the rise, it is equally important to store and process in real-time. Legacy systems and inefficient IT infrastructure cannot keep pace with the required computational power to process such data to generate relevant insights. Additionally, telecom companies looking to improve business performance should look at automation of process and systems including load balancing, automating server deployments, and service-ticket management. Improving IT infrastructure is highly important in developing regions where telecom operators are adding millions of subscribers every month.
To know more about improving business performance in the telecom industry, automation, big data, IoT, and data analytics:
The client: Telecom services provider, Size: >$2.3 billion in revenue, Area of engagement: Customer analytics
The telecom services sector has changed radically in the last couple of years due to the ongoing innovations and developments and companies will continue to expand their operations at a global level. The services at large comprise of an extensive range of applications ranging from mobile internet access, email, text, television, and radio. With the growing concerns pertaining to increase capital expenditures, most service providers are planning to upgrade their network capabilities and expand their service portfolios to meet the rising demands of the customers. Also, additional factors such as increasing disposable income, sturdy economic growth, and increasing preferences for bundled services will contribute to the growth of the telecom services sector. While the presence of numerous over-the-top-players contributes to the growth of the sector, the services at large will be influenced by factors such as:
- Competition from OTT services: The last few years saw a relentless growth in the competition from third-party mobile messaging applications. With the growth in technologies, the consumers will have a wide array of applications to choose from with numerous OTT players offering video calling services. The traditional text services have also been dwindling with a radical decline in the average revenue per user.
- Privacy and security issues: Various telecom service providers maintain a large repository of data, compiling sensitive information of prominent customers. With the rising instances of cyber threats in the recent years, organizations have started facing pressures to maintain a certain amount of security in handling a large amount of information. Moreover, telecom services providers should ensure to implement robust cybersecurity measures to manage information discreetly.
- Development of 5G services: Since innovations such as 5G are paving the way for more advanced connectivity, organizations are facing the need to promote better browsing services with less delay and unlimited connections. Leading conglomerates have already started investing in innovations to produce a network that promises the capabilities of 5G.
To stay relevant in the market space and assess the performance of their network services, leading organizations are leveraging customer analytics solutions. Customer analytics solution refers to the process of determining customer behavior to attract and retain the most profitable customers. Customer analytics also helps businesses gain an accurate view of high-value customers and proactively interact with them.
The Business Challenge
The amount of revenue generated through telecom services is expected to reach 957 billion Euros in the near future.
The client, a prominent telecom services provider, wanted to understand the past buying behavior to gain adequate insights into the customer’s preferences. The client wanted to leverage the use of applications to segment buyers into groups based on their behavior and develop targeted marketing and sales activities to improve the business performance. Through an effective customer analytics engagement, the telecom services provider also wanted to improve customer acquisition, growth, and retention and match their offerings with the right target audiences.
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The Solution Benefits and Business Impact
The customer analytics solution offered by Quantzig helped the telecom services provider assess the probability of churn to target customers with highly relevant offers. Also, the solution offered actionable insights into the brand affinity and the individual’s relationship with the brand. The telecom services provider was also able to engage with the customers through the right message, the right channel, and at the right time. The customer analytics solution also helped the telecom services provider predict the likelihood of the customer’s to churn and identify potential ways to retain the most profitable ones. Moreover, the solution also ensured maximum customer lifetime value through personalized offerings.
Customer Analytics Solution Predictive Insights:
Quantzig’s customer analytics solution helped the client effectively track the customers at every point from their preferences to the probability of churn. The telecom services provider was also able to leverage the use of predictive analytics to monitor the customer usage data and develop innovative ways to reduce customer dissatisfaction.
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The client: Telecom services provider, Size: >$2.7 billion in revenue, Area of engagement: Marketing mix optimization
The telecommunication services sector is essential for the economic growth of the world and is one of the key support services needed for the rapid modernization of various sectors of the economy. In regions such as the developing countries, the market for telecom services has recorded exponential growth over the past few years – facilitated by the implementation of favorable policies and regulatory reforms by regional governments. Though the market for telecom services is expected to witness incremental growth some factors may influence the growth of the telecom services sector over the next few years. They include:
- Growth in IoT: As technology is a key enabler of a competition, telecom services providers are facing pressures to stay relevant and offer VoIP and cloud-based communication services to stay relevant in the market. A recent study also highlights the fact that the number of connected devices is expected to manifold twice by the year 2020. This makes it mandatory for market players to implement systems that can leverage such technologies.
- Diversification: In this competitive environment, the telecom services providers are growing at a rapid pace and are expanding their reach to new markets. Therefore, it becomes essential for the service providers to develop new service lines to increase profitability and optimize their ROI.
- Regulatory reforms: The rising consumer demand and growing communication technology are forcing telecom services providers to reassess their business strategy and encourage investment in high-speed networks. Also, the development of 5G services is compelling telecom services providers to refine their existing digital infrastructure and meet the growing business and public demands.
To keep up with these rapid changes and develop effective marketing campaigns, leading telecom service providers are leveraging marketing mix optimization. Marketing mix optimization is a statistical model that helps companies optimize the budget allotment for different marketing campaigns.
The Business Challenge
The Asia-pacific region is anticipated to be one of the fastest growing markets for telecom services across the globe.
The client, a renowned telecom services provider with branches spread across the Asia-pacific region, wanted to measure the impact of advertising, packaging, distribution channels, and media expenditure on the sales revenue. Their primary aim was to refine the existing marketing models to improve overall market share. To deal with the issue of increasing market competition and rising budget concerns, the telecom services provider wanted to understand the relationship between marketing spending and business performance, identify the potential sales drivers, and estimate the ROI on their marketing investments.
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The Solution and the Business Impact
Strategies we recommended based on our analysis to enhance customer satisfaction
With the help of Quantzig’s marketing mix optimization solution, the client was able to gain accurate insights into their marketing investments. The solution also offered the client a more accurate picture of their ROIs and provided strategic insights on how to improve their customer retention capabilities. The marketing mix optimization solution also helped the telecom services provider assess the impact of their marketing activities on sales performance and offered real-time insights into the future spend to maximize returns.
Market Mix Optimization Predictive Insights:
The telecom services provider was able to streamline their marketing efforts and adequately allocate their marketing budget across various marketing channels. The solution offered also helped them identify the major reasons behind changes in the business performance and assess the impact of internal and external factors on the services rendered.
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Churn rate in the telecom industry is getting players in the sector into a ‘cat on hot bricks’ situation. For the uninitiated, churn rate refers to the percentage of subscribers of a service who discontinue or withdraw from the subscription over a period of time. Naturally, this results in loss of revenue and goodwill for a business causing the players in the telecom industry to compete for customers by offering attractive services and offers to retain the customers or subscribers. Why is it important for a company to keep tabs on their churn rate, you ask? Here’s why:
By keeping a close watch on the number of subscribers sticking to and switching from the brand, companies can identify the strength of their customer service division and evaluate their overall growth prospects. Carriers losing customers does not just mean loss of future revenue but also loss of the investment they had made in acquiring these customers. Therefore, it is essential for companies to monitor their churn rate and take necessary actions to rectify it because it will prove heavier on their pockets to acquire new customers than to retain old ones.
How Can Telecom Industry Players Reduce Churn Rate?
Telecom industry players have realized the importance of monitoring churn rate, and are devising many metrics to determine and predict the probable churn ratio. This would help them to identify gaps well in advance and devise a corrective action plan before they actually lose out on customers. What are some of the common ways that telco companies can effectively reduce their churn rate? Let’s find out:
- One of the important ways through which you can minimize the churn rate in the telecom industry is to up your game in customer service. Providing clients with a hassle-free service experience and a quick mechanism to handle their queries and complaints will promote their loyalty towards the company.
- Attractive value-added services are one of the key customer churn rate reduction mechanisms that companies can use. The more the customer feels they are getting value for their money from the services provided by you, the lower are their chances of switching to a competitor brand.
- In the era of customization, people are more attracted to things that give them a ‘tailor-made’ experience. Personalized tariff plans and service recommendations for customers give them a feeling that the company is giving them specialized care. This is one of the key factors in prompting customer’s brand loyalty.
- Telecom operators must look beyond making profits and aim at the long-term well being of the company through the satisfaction of their customer. Companies must make clear cut decisions on charging the customers reasonably, and reducing the tariffs wherever possible. This will make the customers feel that the brand is not money-minded but is focused on providing optimum benefits to their customers.