We help telecom companies leverage advanced analytics to drive commercial effectiveness throughout the whole organization
Telecommunication companies are at the center of unprecedented change. Data usage is proliferating, new consumption models have made multidevice usage and multidevice viewing the norm, and digital adoption is increasing around the world at unprecedented levels.
These changes, fueled by increasingly accessible and compounding computing power, have enabled telcos to collect petabytes of data. Companies can realize significant value by leveraging advanced analytics techniques to drive dramatic improvements in commercial effectiveness. In addition, telcos can leverage big data and analytics to develop new service and delivery models that are challenging traditional ones and creating entirely new businesses.
Analytics provides telecommunications organizations with the ability to understand these trends and innovative tools for capitalizing on the opportunities they present. Through the combination of our longstanding expertise in the sector and our considerable and growing analytics capabilities, we’re finding new ways to drive innovation and results for our clients.
What we do
Our analytics work in telecommunications spans all business functions: strategy, marketing, operations, and beyond.
Examples of our work
Below are four example areas in which we are serving our clients at scale and implementing what we call machine-learning-powered commercial optimizations for telecommunications:
- Churn identification and prevention. Advanced analytics are revolutionizing the predictive power of churn propensity models, allowing telecom clients to focus their resources on retaining the customers most likely to leave. In the past, implementing proactive retention was a lengthy and expensive process. Data mining and analytics now enable identification of high propensity to churn micromarket segments, with a lower risk of false positives and the ability to deliver retention options to frontline staff quickly and efficiently. With these methods, we have seen telecom companies achieve as much as 15 percent churn reduction.
- Retail distribution optimization. When it comes to telecom retail operations, we know that location is one of the critical parameters that drives sales efficiency. In our experience, for siting decisions, most organizations look mainly at internal data, but fail to harness the wealth of data available in the external environment that can unlock key insights. Using our advanced analytics tool kit, we are able to combine internal store profitability data with external data sources (like competitor store information) within a geography to suggest an optimized retail footprint. This means more alternative locations ranked by sales and net value generation potential.
- Cross-sell and upsell. The ability to cross-sell and upsell is critical for growth. Promoting existing and new services not only increases near-term revenues and margins, it can also increase customer lifetime value by reducing churn. We enable clients to identify granular microsegments and target these with unique tailored pricing, product, and promotion offers to maximize the likelihood that customers buy and stay. These efforts can deliver - 30 percent increase in quoting activity, up to 70 percent conversion rates from personalized campaigns and revenue increases approaching 40 percent in specific micro segments.
- Dynamic pricing. Getting pricing and promotion optimization right is a large and untapped opportunity. Done well, optimized pricing can drive 5 to 10 percent revenue improvement. Our approach involves granularly mapping lifetime value across device, tariff, and channels; calculating price elasticity at the intersection of device, channels, and pricing plan; and then combining these insights into simulations to assess how pricing and promotions affect future volumes and revenue. Applying this approach across markets can provide key insights to inform actions from pricing and promotions to product road map.