Gaining Customer Insight through Big Data Analytics
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1 inform innovate accelerate optimize Gaining Customer Insight through Big Data Analytics Rob Rich MD TM Forum Insights January 29, TM Forum 1
2 Agenda Most promising areas for Big Data Analytics Summary case studies from respondents Conclusions & recommendations Download the report at managingandminingbigdata 2013 TM Forum 2
3 Survey respondent segmentation TM Forum 3
4 Areas of greatest promise 2013 TM Forum 4
5 Case: First call resolution increases customer satisfaction, reduces cost, Business issue Low percentage of first call resolution for smartphone users driving unacceptable cost levels 7% of calls escalated to 2 nd line support 4% of calls escalated to 3 rd line support Average call duration 12 minutes Long call duration impacts customer satisfaction Approach Real time multi-sourced ((apps, devices, service types) analytics deployed; Simpler, clearer presentation of information to 1 st and 2 nd line CSRs Benefits 50% reduction in 2nd level escalations, 70% reduction in 3 rd level escalations, Call duration reduced 8 minutes, Annual cost savings of 5 million euro Higher customer satisfaction rates due to higher first call resolution/ shorter call durations TM Forum 5
6 Use case: real time analytics increase marketing effectiveness Business issue Increase ARPU / customer profitability through targeted offers, Increase customer retention through bundling/ higher wallet share. Approach Multi-channel (retail store, inbound marketing, SMS) campaign driven by analytics Heavy emphasis on upgrading feature phone customers, but including multiservice offerings. quickly understanding offer effectiveness drives marketing agility 24 months of customer history across all channels (approximately 2B records) Benefits Average customer research time reduced to <10 seconds from ~5 minutes, Customer interaction history increased from 3 months to 24 months Campaign effectiveness reduced from average of 10 days to one day. Real time offer capability increases customer take rate probability 2013 TM Forum 6
7 Business Issue Use case: A targeted marketing campaign delivers 100% conversion rate Increase ARPU of smartphone customers Move from mass media advertising to targeted campaigns Approach Understand subscriber base Target lower usage (inherited) smartphone customers. 3 prong campaign approach Educate targeted base of mobile access for social networks Offer free trial (2 weeks) Follow through with conversion campaign Benefits 100% conversion rate! Average ARPU increase 10 Euro Entire project completed in 6 months TM Forum 7
8 Business issue Case: Mobile Operator saves 1 million euro through targeted network investments Respond to customer concerns regarding QoE for customers in specific areas of RAN coverage Develop a targeted approach to LTE investment to increase ROI Approach Deploy multi-source network analytics platform to gain real time view of customer behavior identify the usage patterns of highvalue customers which apps, devices, locations Benefits Operator was able to make a smaller than planned RAN investment to address performance issues. Backhaul capital investment of ~1 M euro deferred Operator able to prioritize LTE investments based on high value customer behavior/ usage patterns TM Forum 8
9 Case: improve the customer experience using real-time network analytics to troubleshoot signalling overload 9 Business need Reduce churn, increase customer satisfaction through better network performance Approach Better understand / correlate signalling, application traffic, and device info and how that impacts network performance and customer experience. Benefits Alleviated congestion / performance issues Avoided capital / capacity investments Improved service provider understanding of interaction between smartphones and network elements (e.g. Apple Push Notification and operator firewall configuration). Collect and correlate a variety of network information, esp. probe and DPI platforms TM Forum 9
10 Critical success factors 2013 TM Forum 10
11 Most important platform capabilities 2013 TM Forum 11
12 Winning with Big data requires much more than technology 2013 TM Forum 12
13 Recommendations & Conclusions Focus on business value Solicit and gain top management support Manage your initiatives like a portfolio Standardize where possible Speed is critical Get some help Have a consolidation strategy Continuous improvement is key Manage data as a corporate asset Nurture your talent 2013 TM Forum 13
14 inform innovate accelerate optimize Thank you Rob Rich Managing Director, Insights Research TM Forum 2013 TM Forum 14
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