How to forecast customers′ churn and increase their value and loyalty with Big Data Analytics
Customer retention is more important than ever for companies in the Telecommunications Industry.
Rate wars, the influence of real-time social networks, and a constant inflow of new players into the market make it vital for Telecom companies to understand customers and respond quickly.
With the main goals to boost loyalty, reduce churn, improve operational efficiency, and support new business models, Telecom companies are doing the following:
- Immediately identify cross-selling opportunities.
- Prevent customer churn and detect upselling opportunities.
- Send effective acquisition and retention campaigns that match the right customers with the right products.
The Challenge: Increase Customer Loyalty
Telecom companies need to leverage and integrate massive amounts of data from a range of sources -like Call Data Records (CDR), customer care, product/service portfolios, cost and billing, and network service quality— in a holistic way, minimizing the poor alignment between siloed departments.
To achieve a 360º approach to customer experience and build a sustainable, competitive advantage, Telecom companies must gain a deep understanding of customer attitudes, behaviors and actions. This is essential to improving customer acquisition and retention. In the back end, improving operational efficiency will increase revenue, reduce operating expenses and simplify business operations.
Telecom companies need to speed time to market by supporting new business models that are flexible and personalized. The network infrastructure can be optimized to support the next generation of teleco business, which includes dynamic applications and services such as Internet of Things (IoT).
How to forecast customer churn and increase customer value and loyalty
- Easy integration of data from miscellaneous sources like call center, CRM, email, social media & demographic. Integrate internal and external data for a 360º view of customers.
- 360º customers view to gain a deeper understanding of customer sentiment from both internal and external sources. Immediately identify cross-selling opportunities.
- Forecasting customer churn to figure out the best product to recommend at the optimum price. Prevent customer churn and detect upselling opportunities.
- Integrated campaign management to enable any user to automate tasks, to optimize the business rules, to systematize processes and to make collaborative decisions that boost company efficiency.
Why OpenText™ Big Data Analytics
Lower private and corporate consumption rates, higher dissatisfaction and distrust of customers towards their operators, and the entrance of new players in the market have turned customer retention into a true challenge for telecommunication companies. Faced with the critical problem of customer attrition, companies in the Telecommunication Industry need to understand their current customers in order to avoid churn. Moreover, they need to learn how to boost customer value and loyalty, while also optimizing the business for better services.
OpenText™ Big Data Analytics is an advanced analytics software appliance that enables companies to access, blend, explore, and analyze all their data quickly, without depending on IT or data experts.
Additional features include:
- Fast Columnar Database to load and integrate large data sets from miscellaneous sources: customers base, call center inbound and outbound calls, campaigns, web analytics, prices, billing, other lines.
- Advanced analytics to identify cross and up selling opportunities, even with customers from more than one line with contracts from different companies.
- Profile to identify the variables that best describe the customer and draws behavioral profiles and patterns to offer them targeted products and services.
- Predictive analytics to forecast customer churn, to recommend the best product to each customer, and to perform optimal pricing analysis.
- Predictive techniques to define triggered business rules that make alarms go off when a variable is out of the expected value, implying a risk (tendency to churn, fall of activity, frauds), responses and stemming actions automated through Workflow. Workflow alerts to stay informed of churn tendency, activity slumps and potential fraud.
- Proven scalability in terms of number of users and high security and permission levels.
- Easy to Connect with OpenText™ Information Hub, Number 1 of the Embeddable Analytics solutions in the market (1), completely customizable, white-label product, which means seamless integration with other systems via an open architecture.
- Facilitates complex design and development of personalized customer-facing applications.
- Comprehensive analytics suite with robust functionality that includes not just reporting, visualizations and performance analytics but also data blending, cleansing, enrichment and advanced and predictive analytics techniques.
- Integrated campaign management with instant visibility into results and the ability to make on-the-fly modifications.
(1) Wisdom of Crowds® Series. Embedded Business Intelligence Market Study Dresner, 2014
Discover the Benefits of OpenText™ Big Data Analytics
- Improve customer retention — Advanced offer management identifies the right product for each customer and sets Optimal Pricing to reduce churn and increase loyalty.
- Gain control of marketing campaigns — Spend less and get better results from highly targeted campaigns based on accurate analytics and smart customer segmentations.
- Reduce costs — Extract maximum value from your data and use insights to increase efficiency.
- Increase average revenue per user (ARPU) — Get bigger ROI from every sales and marketing effort.
- Deliver a better customer experience — Understand customer tendencies, attitudes, profiles and buying patterns to engage one-to-one, identify cross sell opportunities and maximize CLV.
- Inteligent network planning – Plan, predict and optimize the investment based on identification of potential stress points and service forecast demands.
“Advanced and predictive analytics solutions that deliver unprecedented usability, aimed at business users with limited technical skills who demand real-time, self-service data mining?. Marek S. Wojtachnia, Sales Director, Brújula