adopting analytics in telecom

Adopting Analytics

Amarjeet SinghBitanshu DasNamita PandeyRoma Agrawal

“Key To The Future”

AGENDA

What are our challenges in implementing analytics?

What are our proposed plans for implementing analytics?

What benefits will we reap?

What will be our next steps?

What are the current challenges faced by us?

How can analytics help us?

“ In God we trust, all others bring data”

- W. Edwards Deming

AGENDA

What are the current challenges faced by us ?

What are our challenges in implementing analytics ?

What are our proposed plans for implementing analytics?

What benefits will we reap ?

What will be our next steps ?

How can analytics help us ?

Reasons :

Increased market competition causing slashed tariffs

SMS volume hampered by messengers like WhatsApp & WeChat

Call volume decreased by apps like Viber & Skype

Unlimited data packs

Network Congestion

Flat ARPU

Reasons :

Competitors introducing new plans & services

Service Quality

Consumer Psychology

Customer Churn

AGENDA

What are the current challenges faced by us ?

What are our challenges in implementing analytics ?

What are our proposed plans for implementing analytics?

What benefits will we reap ?

What will be our next steps ?

How can analytics help us ?

Fixing Flat ARPU

Personalized advertisement

Innovative Customized tariffs

Value added services for high end customers

Monetize customer data

Capped data plans

Customer Understanding

Social Media and Sentiment Analytics

Predict the Reason and Solve

Innovate and Deliver Constantly

Preventing Customer Churn

AGENDA

What are the current challenges faced by us ?

How can analytics help us?

What are our proposed plans for implementing analytics?

What benefits will we reap ?

What will be our next steps ?

What are our challenges in implementing analytics?

New data center setup

Depends on choice of implementation (hiring analysts or partner with analytics service providers)

Budget

AGENDA

What benefits will we reap ?

What will be our next steps ?

What are the current challenges faced by us ?

How can analytics help us ?

What are our challenges in implementing analytics ?

What are our proposed plans for implementing analytics?

Data Develop an enterprise-wide data architecture.

Analytical Model Hiring/Training analytics professionals. Identify key areas for deploying analytics.

Tools Setting up of hardware, intuitive tools and software

Implementation

AGENDA

What are the current challenges faced by us ?

How can analytics help us ?

What are our challenges in implementing analytics ?

What are our proposed plans for implementing analytics?

What will be our next steps ?

What benefits will we reap ?

Better Management and Operation of cell phone tower

Attractive plans and services

Customer Satisfaction

Increase in ARPU

Our Current ARPU : Data ARPU – 56Rs. Voice ARPU – 143Rs.

After implementing big data analytics Data ARPU

Almost 11% increase in the 1st year

34% increase in 2nd year Voice ARPU

More Than 15% increase in 1st year

Almost 33% increase in 2nd year.

Data ARPU Voice ARPU

56

143

62

165

75

190

Increase in ARPU

3rd Qrtr 2014 3rd Qrtr 201153rd Qrtr 2016

Decrease in Churn Rate

Present Current Churn Rate : 21%

After implementing big data analytics

Churn Rate in 1st Year : 10% Churn Rate in 2nd Year : 6%

Churn Rate

21%

10%

6%

Decrease in Churn Rate

3rd Qrtr 2014 3rd Qrtr 201153rd Qrtr 2016

Success Stories

Global Telecom (Philippines) Expected one-year payback

period. Uses big data analytics to

improve effectiveness of promotion by 600%.

More than 95% reduction in the time and cost of developing new promotions.

Improved uptake of services through the smart delivery of promotional offers

Increased market share and revenue

Increase in Sales %age

0

100

200

300

400

500

600

700

Big Data Analytics Effect on Promotion

Older Promotional ModelNew Promotional Model

Success Stories

Ufone (Pakistan) Deploying big data analytics

to improve marketing offer acceptance rate 25% to 50%.

Had a churn rate of 2.4%- 3% per month before changing strategies.

Present churn rate stands at 0.4% per month.

Decreasing Churn Rate

0%

1%

2%

3%

4%

Big Data Analytics Effect on Churn Rate

Older Churn RatePresent Churn Rate

Success Stories

XO Communications (US) Using predictive analytics

to improve customer experience resulted in $15 million per year.

ROI 376% Churn rate reduction 8%

first year and 18% second year.

Fig – Initial Investment

Pre-Start Year 1 Year 20

1000000

2000000

3000000

4000000

5000000

6000000

Financial Analysis

Net Cash flow before taxes Net Cash flow after taxes

AGENDA

What are the current challenges faced by us ?

How can analytics help us ?

What are our challenges in implementing analytics ?

What are our proposed plans for implementing analytics?

What benefits will we reap ?

What will be our next steps ?

Feasibility Study

The Choice : Outsourcing or setting up a new department

“CSPs that act swiftly to capitalize on the insights locked inside the vast volume, velocity and

variety of big data will position themselves to keep ahead of the competition, improve

customer experience, drive new products, increase productivity, predict future trends, and

especially, make money. “

Questions ??

Thank you…