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Data handling case study

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24 views3 pages

Case Study

Data handling case study

Uploaded by

md.nazmul.hasan.asif
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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A Better Data Plan: Well-Established TELCOs Leverage Data

Warehousing and Analytics to Stay on Top in a Competitive


Industry

Mobile service providers (i.e., Telecommunication Companies, or TELCOs in short) that


helped trigger the explosive growth of the industry in the mid- to late-1990s have long
reaped the benefits of being first to market. But to stay competitive, these companies
must continuously refine everything from customer service to plan pricing. In fact,
veteran carriers face many of the same challenges that up-and-coming carriers do:
retaining customers, decreasing costs, fine-tuning pricing models, improving customer
satisfaction, acquiring new customers and understanding the role of social media in
customer loyalty.

Highly targeted data analytics play an ever more- critical role in helping carriers secure
or improve their standing in an increasingly competitive marketplace. Here’s how some
of the world’s leading providers are creating a strong future based on solid business and
customer intelligence.

Customer Retention
It’s no secret that the speed and success with which a provider handles service requests
directly affects customer satisfaction and, in turn, the propensity to churn. But getting
down to which factors have the greatest impact is a challenge. “If we could trace the
steps involved with each process, we could understand points of failure and
acceleration,” notes Roxanne Garcia, manager of the Commercial Operations Center for
Telefónica de Argentina. “We could measure workflows both within and across
functions, anticipate rather than react to performance indicators, and improve the
overall satisfaction with onboarding new customers.” The company’s solution was its
traceability project, which began with 10 dashboards in 2009. It has since realized
US$2.4 million in annualized revenues and cost savings, shortened customer
provisioning times and reduced customer defections by 30%.

Cost Reduction
Staying ahead of the game in any industry depends, in large part, on keeping costs in
line. For France’s Bouygues Telecom, cost reduction came in the form of automation.
Aladin, the company’s Teradata-based marketing operations management system,
automates marketing/communications collateral production. It delivered more than
US$1 million in savings in a single year while tripling email campaign and content
production.

“The goal is to be more productive and responsive, to simplify teamwork, [and] to


standardize and protect our expertise,” notes Catherine Corrado, the company’s project
lead and retail communications manager. “[Aladin lets] team members focus on value
added work by reducing low-value tasks. The end
result is more quality and more creative [output].”

An unintended but very welcome benefit of Aladin is that other departments have been
inspired to begin deploying similar projects for everything from call center support to
product/offer launch processes.
Customer Acquisition
With market penetration near or above 100% in many countries, thanks to consumers
who own multiple devices, the issue of new customer acquisition is no small challenge.
Pakistan’s largest carrier, Mobilink, also faces the difficulty of operating in a market
where 98% of users have a pre-paid plan that requires regular purchases of additional
minutes.

“Topping up, in particular, keeps the revenues strong and is critical to our company’s
growth,” says Umer Afzal, senior manager, BI. “Previously we lacked the ability to
enhance this aspect of incremental growth. Our sales information model gave us that
ability because it helped the distribution team plan sales tactics based on smarter data-
driven strategies that keep our suppliers [of SIM cards, scratch cards
and electronic top-up capability] fully stocked.”

As a result, Mobilink has not only grown subscriber recharges by 2% but also expanded
new customer acquisition by 4% and improved the profitability of those sales by 4%.

Social Networking
The expanding use of social networks is changing how many organizations approach
everything from customer service to sales and marketing. More carriers are turning
their attention to social networks to better understand and influence customer
behavior.

Mobilink has initiated a social network analysis project that will enable the company to
explore the concept of viral marketing and identify key influencers who can act as brand
ambassadors to cross-sell products. Velcom is looking for similar key influencers as well
as low-value customers whose social value can be leveraged to improve existing
relationships. Meanwhile, Swisscom is looking to combine the social network aspect of
customer behavior with the rest of its analysis over the next several months.

Rise to the Challenge


While each market presents its own unique challenges, most mobile carriers spend a
great deal of time and resources creating, deploying and refining plans to address each
of the challenges outlined here. The good news is that just as the industry and mobile
technology have expanded and improved over the years, so also have the data analytics
solutions that have been created to meet these challenges
head on.

Sound data analysis uses existing customer, business and market intelligence to predict
and influence future behaviors and outcomes. The end result is a smarter, more agile
and more successful approach to gaining market share and improving profitability.

Questions for Discussion


1. What are the main challenges for TELCOs?
2. How can data warehousing and data analytics help TELCOs in overcoming their
challenges?
3. Why do you think TELCOs are well suited to take full advantage of data analytics?
Source: Teradata Magazine, Case Study by Colleen Marble, “A
Better Data Plan: Well-Established Telcos Leverage Analytics
to Stay on Top in a Competitive Industry” http://www.
teradatamagazine.com/v13n01/Features/A-Better-Data-
Plan/ (accessed September 2013).

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