Introduction
As telecommunications markets in developed and developing countries approach saturation, telecommunications companies are experiencing increasing competition and are experiencing a downward trend in their ARPU (Average Revenue Per User). Voice service revenues have decreased exponentially. There has been a considerable shift in bargaining power from telecom service providers to customers. In the past, telcos used to design the products / services and then find the right market / customers. But in the current scenario, the balance has shifted towards customers and now telecommunications companies need to develop products and services that address specific customer needs. Telcos need to retain their existing customers and subsequently increase ARPU.
To retain customers and improve their use, telecommunications companies must identify and meet the unique needs of individual customers. To achieve this, telecommunications companies need to know their customers in a deeper way. Herein lies the importance of business analytics in the modern telecommunications industry.
Business analytics help telecom service providers to learn more about their customers’ preferences, behavior, and call pattern, and can predict their future actions. In the modern telecommunications industry, business analytics can be widely used for the following activities:
Churn management
Customer acquisition and retention is a significant challenge in all industries. In the telecommunications industry, business profitability suffers if a customer leaves before the business can recoup the investment it made to acquire the customer. Therefore, it is very important to identify profitable customers and retain them.
Using business analytics and data mining, the telecom operator can build a predictive model based on past customer behavior and individual customers are scored. This score indicates the probability that the customer will leave the operator’s services. Furthermore, by identifying the main factors that contribute to the generated churn score, the reasons for their probable churn can be detected. By tackling those issues successfully, the customer can be made more loyal to the company, and ultimately can be prevented from becoming agitated.
Customer segmentation
With the help of business analytics, telecom service providers can segment their customer base based on various conditions.
For instance:
By analyzing various parameters (for example: inbound and outbound voice usage, recharge, revenue, use of value-added services, use of data services, etc.), the entire customer base can be segmented into various groups whose behavior and needs will have a significant difference that can be identified and addressed to enhance your wallet engagement.
Also, the customer whose monthly usage is above the company’s ARPU (Average Revenue Per User) can be classified as a high-income customer. Specific campaigns can be designed and run to satisfy this group of customers that will be TikTok Analytics Platform completely different from campaigns to run for low-usage customers.
Customers who have high use of STD calls (national long distance calls) can be targeted with specific STD rate packages.
In a country like India with several ethnic groups, each with unique characteristics and behavior patterns, the use and needs are significantly different. By analyzing their pattern of use, they can be classified into various ethnic groups.
Therefore, through business analysis and data mining, operators can identify various customer segments. With a more detailed analysis of the extracted data, operators can identify and address the specific needs and demands of these customer segments.
Campaign management
Business analytics solutions can provide an integrated platform for campaign design and execution. Based on customer segmentation, churn score, usage pattern, recharge history; Campaigns can be designed for retention, revenue enhancement (increasing customer portfolio engagement), and cross-sell and up-sell.
For example, you can design a retention campaign for customers who have high usage (monthly usage more than ARPU) and have a high churn score. These are valuable customers and the company does not want to lose them. This can be expanded to perform the following analysis:
Identify the effectiveness of the campaign
– Capturing customer responses in individual campaigns.
Infer the responsiveness of customers to channels
– Historical analysis of the response capacity of customers to a particular channel.
Provide only the information the customer wants
– Historical study / analysis of customer behavior: provides information about their needs
Deliver the most relevant message to the customer at the right time
– Historical analysis of your response times (for example: during Diwali, Holi or Christmas)
Examine the reaction of customers in an email.
– Analyze email response and conversion rates aggregated by attrition probability to identify potential targets for new loyalty campaigns
Cross sell and up sell
The establishment of a business analysis platform within the telecommunications companies provides a business view of the customer. Provides data on customer preferences and their behavior with reference to all kinds of services provided by the telecommunications company.
By analyzing the extracted data regarding customer usage, their balance availability, and their subscription pattern, telecom service providers can build data models to identify the product bundle and thus detect sales opportunities. cross and top selling.
For example: by analyzing historical data (say over 6 months) and building a data model based on various parameters of a voice usage customer, potential customers for data usage and other valuable services can be identified aggregate provided by the telecommunications company, to whom the bundled product promotions can be directed.
If customers with high wireless voice usage are found to have high sms usage as well, then a package of voice and sms products can be targeted for this group of customers. If a customer group always updates to the latest equipment and subscribes to recently released services, this customer group can be targeted with a bundle of latest available equipment products and recently released services (for example: 3G services with phones recently released)
Analysis of rentability
With the help of available data, telcos can monitor the performance of individual portfolios. They can measure return on investments for individual products / services offered, pricing plans. Based on the performance analysis, service providers can decide which plan / products / services to follow in the future. They can conduct a profitability analysis of new products.
Credit risk management
Business analytics provide insights into credit payment risk. You can rate clients based on their historical behavior and their credit ratings. Therefore, it is not necessary to disconnect services for those clients who have low credit risk scores, while clients with high credit risk scores should be treated with less tolerance and can decide on a termination or switch to a credit scheme. prepaid depending on analysis of additional data on those customers.
conclusion
From the above discussion it can be inferred that business analytics can provide telecommunications companies with the necessary knowledge about their customers, which can be used to identify the intricate needs of customers and help telecommunications companies to better serve them, therefore , to achieve an increase in income from individual clients and improve the profitability of the business.