Tuesday, 04 August 2020

Tapping ‘data goldmine’ could bring ‘Zombie’ customers to life

by Harry Baldock, Total Telecom
Wednesday 08 July 20

A new white paper from fonYou Telecom shows that operators are analysing just 0.5% of their total data

Knowledge is power. In the modern world, such a phrase is almost synonymous with mass data analysis, drawing broad conclusions about distinct market segments. But now, cloud-based platforms could soon make it possible to respond optimally to individual customers needs in realtime.   As the handlers of a vast quantity data, one would be excused for thinking that network operators themselves are at the forefront harnessing digital customer data. However…

Knowledge is power. In the modern world, such a phrase is almost synonymous with mass data analysis, drawing broad conclusions about distinct market segments. But now, cloud-based platforms could soon make it possible to respond optimally to individual customers needs in realtime.
 
As the handlers of a vast quantity data, one would be excused for thinking that network operators themselves are at the forefront harnessing digital customer data. However, a recent white paper from data analytics specialists fonYou Telecom, “The New Goldrush”, shows that this if far from true, with operators analysing and making use of just 0.5% of their available data.
 
As a result, fonYou argues that the operators are missing out on a ‘goldmine’ that would allow them to offer customers hyper-personalised services.
 
“Everything runs through carrier networks – they are filled with data from social networks, messaging services, e-commerce sites and payment apps,” explained fonYou CEO Fernando Nunez Mendoza. “This data represents a huge opportunity to build and deliver solutions that customers want to buy.”
 
In the case study contained within their white paper, fonYou showed that harnessing AI and public cloud data will offer opportunities to transform existing low-value customers. In their study, a carriers so-called ‘zombie’ pre-pay customers, who regularly went days with zero credit between physical in-store top-ups, could be identified and migrated to their digital iCarrier platform. This allowed the ‘zombie’ customers to make digital payments, after which the ARPU of this group boomed by 125%.
 
But this analysis can go beyond simply better identifying marketing target groups. In the future, it will allow for hyper-personalised offers based on a customers’ specific data consumption.
 
“For example, if we know that the customer is a big football fan based on his data, AI will be able to offer him a bespoke deal for the upcoming cup final in real time,” explained co-founder and CTO of fonYou, Albrecht von der Recke, speaking to Total Telecom. “It’s a game changer for us.”
 
At the heart of this issue is the sheer scale of the data being assessed – in the aforementioned case study, fonYou analysed two billion customer data events every day, something which would simply not have been possible without recent tech advances.
 
“Conducting analysis on this enormous scale is only recently becoming possible,” said von der Recke. “Hardware solutions beforehand could not handle this volume of data. It is only by incorporating machine learning that we have been able to drive the costs below $0.10 per million transactions, to make it profitable.”
 
With the volume of mobile data skyrocketing – some estimates suggest a ten-fold increase over the next five years – the opportunity for operators here is enormous, but if they do not act quickly they risk being circumvented by newcomers to the market. While some telcos are slowly coming around to the idea of partnering with cloud platforms like Google Cloud and Amazon Web Services for realtime data analysis on this scale, many still are trying to go it alone. If these telcos are not careful, there is a very real risk that they may be left behind. 
 
 

Since you're here...

...the Telecoms industry is characterised by constant change and evolution. That's why it's crucial for telecoms professionals to keep up-to-date with what is happening. Join 35,000+ of your peers and sign up to our free newsletter service today, to be in the know about what is going on. PLUS, as a member you can submit your own press releases!

See all membership options

Please enable JavaScript to view the comments powered by Disqus.

Newsletter signup

Quickly get on board and up to date with the telecoms industry