Exploiting big data in telecommunications to increase revenue, reduce customer churn and operating costs

Communications service providers all over the globe are seeing an unprecedented rise in volume, variety and velocity of information ("big data") due to next generation mobile network rollouts, increased use of smart phones and rise of social media.

Service providers who can tackle the big data challenge will differentiate from competitors, gain market share and increase revenue and profits with innovative new services.

Successfully harnessing big data can help service providers achieve three critical objectives for telecommunications transformation: Deliver smarter services that generate new sources of revenue; Transform operations to achieve business and service excellence; and Build smarter networks to drive consistent, high-quality customer experience.

IBM can help you achieve your business objectives by applying big data solutions to key business use cases. These include:


Pro-active call center

With a majority of subscribers using smart phones to access data services as well as voice, mobile network operators are seeing explosive growth in traffic levels across their networks. In addition, the mobile network operator environment is fiercely competitive, with the ability to attract, retain and grow valuable subscribers being key. Increasingly, the provision of high quality customer care is an important component in the marketing mix and in retaining subscribers.

The Proactive Call Center solution from IBM is distinct from the traditional call center business model by moving the call center out into the customer base. It provides CSPs with actionable insights to offer a superior customer service experience while reducing fixed and variable costs in delivering service, reducing churn and identifying new product offerings to improve customer loyalty and brand perception. Benefits include:

Tier 1 Mobile Service Provider transforms call centers with real-time access to customer and product data.


 

Smarter campaigns

Campaigns at most service providers are based on customer profile data with demographics information (age, income, gender, profession, etc.) combined with fairly simple rules such as sending the subscriber an offer to renew their contract prior to expiration at a favorable price. Service providers have a wealth of data about subscriber usage and location, however, do not often have tools to analyze it.

IBM Big Data Analytics portfolio enables service providers to analyze subscriber usage and digital behavior (channel interaction, social media) for opt-in subscribers and combine it with subscriber profile to identify and deliver targeted offers in real-time. Benefits include:

Globe.Globe Telecom uses big data analytics to improve effectiveness of promotions by 600%.



Ufone is deploying big data analytics to improve marketing offer acceptance rate from 25% to 50%.



XO CommunicationsXO Communications uses IBM's PureData System for Analytics to improve customer experience which resulted in current savings of USD 15 million per year.


Network analytics

Telecom operators have historically focused on managing the network with little visibility to the impact it has on the customer's experience. The operator was forced to work with snapshots of network data in fragmented views or at a summary level in order to plan network capacity or provide information to customer care and marketing about customer transactions.

With the network analytics solution from IBM, the service provider gets the measurements and metrics necessary to successfully manage their entire network end to end, optimize network spend and proactively address service issues and identify monetization opportunities. Benefits include:

Watch the videoT-Mobile uses big data to optimize network performance &
reduce costs.

SprintSprint leverages big data analytics to put real-time intelligence and control back into the network driving a 90% increase in capacity.



Location-based services

The proliferation of smart phones presents new opportunities and challenges: consumers want the best deals for all purchases based on their real-time location while requiring the services provider to honor their privacy preferences and provide only relevant offers when requested/opted-in.

IBM's big data analytics portfolio enables service providers to analyze real-time location data over time for opt-in subscribers to understand subscribe lifestyle. Combining lifestyle and mobile profiles with subscriber usage and digital behavior allows service provider to create targeted offers for opt-in subscribers. This drives much higher response rates for marketing offers, resulting in higher revenue. Benefits include:

Watch the videoWith big data technology, CSPs can analyze the location data generated by millions of mobile devices and use the resulting insights, along with offerings from business partners, to deliver customized services and offers that consumers want.


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Blogs

Telco industry experts share their thoughts.


Additional resources


Big data for telecommunications resources

Featured communications experts

Rich Lanahan

Executive Consultant Telecommunications, IBM Software

Arvind Sathi

WW Information Agenda Architect, IBM

Mehul Shah

Global Executive Consultant, Communications Sector, Information & Analytics Strategy, IBM

Gaurav Deshpande

Industry Marketing Manager, Communications Sector, IBM


The big data platform is a key enabler of IBM's Smarter Analytics approach.


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