The use of analytics in improving service delivery, customer satisfaction and subsequently, customer retention is already widespread. 'Big Data' is expected to provide the much needed information on a wide range of areas and depending on the strength of the back-end analysis engines and methodologies, will provide the very insights that fuel product and process innovations and improvements. The telecom sector, with its increasing number of services, plans and bundles is one sector that is becoming increasingly dependent on the use of analytics. According to Mobile Analytics Big Data: Strategies for MNOs, Brands and OTTs 2013-2018 by Juniper Research, Mobile Operators worldwide are set to gain from a significant reduction in churn through the adoption of Big Data and Analytics techniques, equivalent to an increase in revenues of almost $4bn a year by 2018. The found that the implementation of analytics platforms was enabling operators to anticipate the likelihood of customers to churn, to take preventative action and thereby reduce revenue loss. It cited MTN South Africa, which in 2012 deployed a Big Data programme combining subscriber information and social network analysis to determine priority users and customer networks and subsequently saw annualised churn decline by more than 20 percentage points. Other findings from the report include:
Analytics will generate almost $9bn of savings and incremental revenues worldwide for mobile operators by 2018
OTT (Over the Top) players and digital content providers need to deploy analytics solutions to improve customer segmentation and thereby increasing targeting and upselling opportunity
“Although the scope for churn reduction varies by country and by operator MNOs (Mobile Network Operators) with high numbers of Pre Pay subscribers are likely to realise the greatest benefits,” stated report author Keith Breed. “By gaining control of structured & unstructured customer data for the first time, operators in emerging markets can gain far greater consumer insight than was previously the case.”
Source - Juniper Research (Oct 7, 2013)
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