Customer profiles are a great way to help define the ideal customer. For telcos, customer profiles are a comprehensive representation of the typical users of a product or service. The focus on wants and needs from a customer perspective makes profiling an attractive option for telcos to make marketing decisions and target communication.

However, with data being generated at every turn across multiple sources, telcos now possess an opportunity to tap into deeper data sources obtained from a host of channels and partners. This whitepaper aims to be a primer on customer profile enrichment and educate telco marketers on how multi-source data can help paint a better picture of their customers by enriching their existing profiles. Also in this discussion are the various benefits of customer profile enrichment and the scope of enriched profiles beyond existing customer bases.

Profiles begin life from the data generated by the interaction of customers with the telco’s various touchpoints (site, shop floor, customer care etc.). They are created by mining through the huge data sets and harvesting insights and hence they are only as good as the data they originate from. This gives rise to a question of ‘how much’ of a customer’s profile is enough to build communication on? Basic customer data can only generate a basic customer profile which when used as a marketing foundation might not cover all the angles and bases. Communication that leans on basic information such as a customer’s monthly plans and payment histories cannot help understand customers in the long run and in some cases even be counterproductive.

CustomerProfile Enrichmentusing analytics for Telcos

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EXECUTIVE SUMMARYCustomer profiles are a great way to help define the ideal customer. For telcos, customer profiles are a comprehensive representation of the typical users of a product or service. The focus on wants and needs from a customer perspective makes profiling an attractive option for telcos to make marketing decisions and target communication.

CUSTOMER PROFILES ARE A COMPREHENSIVE REPRESENTATION OF THE TYPICAL USERS OF A PRODUCT OR SERVICE.

However, with data being generated at every turn across multiple sources, telcos now possess an opportunity to tap into deeper data sources obtained from a host of channels and partners. This whitepaper aims to be a primer on customer profile enrichment and educate telco marketers on how multi-source data can help paint a better picture of their customers by enriching their existing profiles. Also in this discussion are the various benefits of customer profile enrichment and the scope of enriched profiles beyond existing customer bases.

Profiles begin life from the data generated by the interaction of customers with the telco’s various touchpoints (site, shop floor, customer care etc.). They are created by mining through the huge data sets and harvesting insights and hence they are only as good as the data they originate from. This gives rise to a question of ‘how much’ of a customer’s profile is enough to build communication on? Basic customer data can only generate a basic customer profile which when used as a marketing foundation might not cover all the angles and bases. Communication that leans on basic information such as a customer’s monthly plans and payment histories cannot help understand customers in the long run and in some cases even be counterproductive.

Customer profiles are a great way to help define the ideal customer. For telcos, customer profiles are a comprehensive representation of the typical users of a product or service. The focus on wants and needs from a customer perspective makes profiling an attractive option for telcos to make marketing decisions and target communication.

However, with data being generated at every turn across multiple sources, telcos now possess an opportunity to tap into deeper data sources obtained from a host of channels and partners. This whitepaper aims to be a primer on customer profile enrichment and educate telco marketers on how multi-source data can help paint a better picture of their customers by enriching their existing profiles. Also in this discussion are the various benefits of customer profile enrichment and the scope of enriched profiles beyond existing customer bases.

Profiles begin life from the data generated by the interaction of customers with the telco’s various touchpoints (site, shop floor, customer care etc.). They are created by mining through the huge data sets and harvesting insights and hence they are only as good as the data they originate from. This gives rise to a question of ‘how much’ of a customer’s profile is enough to build communication on? Basic customer data can only generate a basic customer profile which when used as a marketing foundation might not cover all the angles and bases. Communication that leans on basic information such as a customer’s monthly plans and payment histories cannot help understand customers in the long run and in some cases even be counterproductive.

● FIRST PARTY DATA

First Party Data is that data which is directly generated as a result of customers interacting with a telco and its associated products. Examples could be anything from customers’ voice and data plans, Support history, Payment plans and track record etc. This data is typically generated and stored within the confines of the telco’s business ecosystem and is the simplest and most direct form of data available.

● SECOND PARTY DATA

The telecom marketing landscape is a complex network of channel partners, manufacturers, and retailers just to name a few. Data is available with such partners is known as Second Party Data. Think of this data as a partner’s First Party Data. And in the context of telecom such data could be anything from a particular customer’s device preferences, to their inclination towards offers.

● THIRD PARTY DATA

Third Party Data is that which can be obtained from external sources such as the public domain or that which can be purchased from data selling entities. Examples include market information, demographic data, economic data and so forth.

Customer profiles are a great way to help define the ideal customer. For telcos, customer profiles are a comprehensive representation of the typical users of a product or service. The focus on wants and needs from a customer perspective makes profiling an attractive option for telcos to make marketing decisions and target communication.

However, with data being generated at every turn across multiple sources, telcos now possess an opportunity to tap into deeper data sources obtained from a host of channels and partners. This whitepaper aims to be a primer on customer profile enrichment and educate telco marketers on how multi-source data can help paint a better picture of their customers by enriching their existing profiles. Also in this discussion are the various benefits of customer profile enrichment and the scope of enriched profiles beyond existing customer bases.

INTRODUCTION TO DATA TYPESIt is imperative that we first understand the various types of data that come into play in data marketing ecosystem. Data typically can be classified based on its point of origination relative to telco. Ergo data can be broadly classified as either falling under First, Second or Third Party information. A quick definition of the three types of data is as follows.

DATA CAN BE BROADLY CLASSIFIED AS EITHER FALLING UNDER FIRST, SECOND OR THIRD PARTY INFORMATION

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Profiles begin life from the data generated by the interaction of customers with the telco’s various touchpoints (site, shop floor, customer care etc.). They are created by mining through the huge data sets and harvesting insights and hence they are only as good as the data they originate from. This gives rise to a question of ‘how much’ of a customer’s profile is enough to build communication on? Basic customer data can only generate a basic customer profile which when used as a marketing foundation might not cover all the angles and bases. Communication that leans on basic information such as a customer’s monthly plans and payment histories cannot help understand customers in the long run and in some cases even be counterproductive.

● FIRST PARTY DATA

First Party Data is that data which is directly generated as a result of customers interacting with a telco and its associated products. Examples could be anything from customers’ voice and data plans, Support history, Payment plans and track record etc. This data is typically generated and stored within the confines of the telco’s business ecosystem and is the simplest and most direct form of data available.

● SECOND PARTY DATA

The telecom marketing landscape is a complex network of channel partners, manufacturers, and retailers just to name a few. Data is available with such partners is known as Second Party Data. Think of this data as a partner’s First Party Data. And in the context of telecom such data could be anything from a particular customer’s device preferences, to their inclination towards offers.

● THIRD PARTY DATA

Third Party Data is that which can be obtained from external sources such as the public domain or that which can be purchased from data selling entities. Examples include market information, demographic data, economic data and so forth.

● FIRST PARTY DATA

First Party Data is that data which is directly generated as a result of customers interacting with a telco and its associated products. Examples could be anything from customers’ voice and data plans, Support history, Payment plans and track record etc. This data is typically generated and stored within the confines of the telco’s business ecosystem and is the simplest and most direct form of data available.

● SECOND PARTY DATA

The telecom marketing landscape is a complex network of channel partners, manufacturers, and retailers just to name a few. Data is available with such partners is known as Second Party Data. Think of this data as a partner’s First Party Data. And in the context of telecom such data could be anything from a particular customer’s device preferences, to their inclination towards offers.

● THIRD PARTY DATA

Third Party Data is that which can be obtained from external sources such as the public domain or that which can be purchased from data selling entities. Examples include market information, demographic data, economic data and so forth.

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INTEGRATION OF 1, 2 AND 3RD PARTY DATA WILL RESULT IN AN ENRICHED CUSTOMER PROFILEFirst party data can provide fundamental knowledge about customers and their basic preferences. But to truly leverage the power of a customer profile, it is imperative that a profile conveys deep insights and paints a wholesome picture of the customers it represents. This means enriching the profile beyond the standard of first party data.

Using data from various second and third party sources telcos can add on to what is already known about their customers. The confluence of first, second and third party data can elevate a customer profile to the extent that telcos can target their communications to fulfil the wants, needs and preferences of their target customer base down to an individual level.

IT IS IMPERATIVE THAT A PROFILE CONVEYS DEEP INSIGHTS AND PAINTS A WHOLESOME PICTURE OF THE CUSTOMERS IT REPRESENTS.

● FIRST PARTY DATA

First Party Data is that data which is directly generated as a result of customers interacting with a telco and its associated products. Examples could be anything from customers’ voice and data plans, Support history, Payment plans and track record etc. This data is typically generated and stored within the confines of the telco’s business ecosystem and is the simplest and most direct form of data available.

● SECOND PARTY DATA

The telecom marketing landscape is a complex network of channel partners, manufacturers, and retailers just to name a few. Data is available with such partners is known as Second Party Data. Think of this data as a partner’s First Party Data. And in the context of telecom such data could be anything from a particular customer’s device preferences, to their inclination towards offers.

● THIRD PARTY DATA

Third Party Data is that which can be obtained from external sources such as the public domain or that which can be purchased from data selling entities. Examples include market information, demographic data, economic data and so forth.

3RD PARTYDATA

2ND PARTYDATA

1ST PARTYDATA

CUSTOMERPROFILE

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EXPECTED BENEFITSUsing data from multiple sources in customer profiling enrichment has many benefits, a few of which are outlined below.

● Using multi source, multi-party data, telco providers can help identify new and attractive segments and sub-segments to reach out their products and services to

● Telcos also receive invaluable insight on customers’ purchasing decisions and behavior and create an opportunity to address them directly through proper lines of communication

● The greater relevance of the products and services to the target audiences’ wants and needs induces a higher rate of conversion

● Telcos can also communicate product and service features in a more transparent manner and better manage their customers and prospects expectations of their brand

THE GREATER RELEVANCE OF THE PRODUCTS AND SERVICES TO THE TARGET AUDIENCES’ WANTS AND NEEDS INDUCES A HIGHER RATE OF CONVERSION

BENEFITSBENEFITS!!

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HOW USING 2ND AND 3RD PARTY DATA ALONG WITH 1ST PARTY DATA TRULY LEADS TO ENRICHMENTEvery single point of customer interaction can produce a deluge of First, Second and Third Party data. But if telcos choose to pursue customers purely on the basis of their own, First Party Data then their understanding of customers becomes severely limited as explained in the example below.

Imagine a major telco is basing next quarter’s customer communication exclusively based on the information of customers’ interactions with their products and nothing else (First Party Data). With such a limited spectrum of information, the different ways by which the telco’s customers can be communicated to become severely restricted. There is a risk of the same customers being touched with the same campaigns over and over leading to campaign fatigue and the customers deciding to call time on the relationship.

THERE IS A RISK OF THE SAME CUSTOMERS BEING TOUCHED WITH THE SAME CAMPAIGNS OVER AND OVER LEADING TO CAMPAIGN FATIGUE AND THE CUSTOMERS DECIDING TO CALL TIME ON THE RELATIONSHIP.

Continuing with the previous example, let us assume in addition to first party data such as plans, coverage and payments, the above mentioned telco also has access to second and third party data obtained from its partners. Customers’ device preferences, accessories purchases, point of sale information etc. can help create a much more rounded and comprehensive picture of the same customer than just first party data. The result is a richer customer profile, with better targeting and personalization opportunities when it comes to communications. For example, rather than offering a standardized cellular plan to a smartphone using customer, a tailored plan offer can be created which offers more data value to the particular customer – something that would be quite relevant to a user utilizing a smart device.

DAT PLANS

3G

2GMEGA BYTES

UNLIMITED

But if a telco could have access to more information on what their customers do, what they want or don’t want there is the opportunity for them to understand their customers to a greater level that presently possible. Telcos can learn more about their customers’ behaviors, which in turn can open up many more ways to target and communicate to customers. This is where second and third party data can help as explained below.

1. STARTING WITH EXISTING CUSTOMERS

Reaching out to prospects requires telcos to first master the art of reaching out to their existing customer bases. Typically, First Party Data intelligence empowers telcos to acquire a comprehensive knowledge of their customers’ wants and needs, which can be used to further fine tune segments and create communication strategies and campaigns that leverage the various customer engagement channels.

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PROFILING PROSPECTIVECUSTOMERS WITHENRICHED PROFILES DATAWhile enriched profiles are an excellent tool to better understand existing customers, they can also be used to acquire in-depth knowledge about prospective customers. Campaigns that run on the existing customer bases generate valuable intelligence which is the first step in understanding prospects. The following sections elaborate on how to reconcile the learnings from existing customer campaigns and extrapolate the knowledge to form enhanced prospect profiles.

ENRICHED PROFILES CAN ALSO BE USED TO ACQUIRE IN-DEPTH KNOWLEDGE ABOUT PROSPECTIVE CUSTOMERS.

2. BEHAVIORAL MAPPING

Campaigns generate huge amounts of customer information and insight. Currently running customer campaigns give rise to a host of learnings which can be extrapolated to the raw prospect base. For example, if a customer in a specific age group, falling under a particular salary bracket has a preference for a premium telco plan, then it is highly logical that a prospective customer with the same attributes could potentially favor the same plan. Further clarity and fine tuning can be achieved by superimposing Second and Third Party Data such as typical devices preferred by the demographic and average monthly spend on mobile communications. The characteristics and behaviors can be mapped to the prospect base using ‘Look Alike Models’ and White Space Analyses’.

3. TESTING

With the target audience and their characteristics established, personalized communication and messaging follow. Multiple versions of campaign messages with variations in visuals, text and call to actions are created with the aim to resonate with the targeted prospects. The variations are sent out and are kept track of for responsiveness.

A B

B C

A C

4. FINAL VERSIONS

By continuously tracking a prospect’s campaign responses, the optimal lines of communication are identified for the prospect segments with similar attributes and characteristics to the existing customer base. Further improvements are driven to optimize the engagement and fine tune the final communication to enable the onboarding of respondents.

TELCO

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CONCLUDING THOUGHTSWith customer needs and behavior changing drastically, they are no longer satisfied with vanilla telco experiences. Prospective customers expect telcos to attract them with value additions such as offers, freebies and the ubiquity of data makes a multi-party, multi-source data driven approach highly desirable for those wanting to understand customers and stay ahead of the competition.

ABOUT XERAGO08.................................................

Xerago is a new age marketing solutions company with a footprint across Asia Pacific, now making its foray into USA. Clients include Citi, DBS, HDFC Bank, SM Retail, Celcom, Starhub, Intel, BharatMatrimony, and a number of other market-leading and start-up brands.

To learn more about Customer Value Maximization and how it can help you,contact your nearest Xerago office.

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