Real-time Data Opening up the $47 billion opportunity: contextual aware real-time offers

Martin Morgan, VP Marketing, Openet BBTM and Big Data Summit, Barcelona, 12th November 2014

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• Real-time – Generation now

• Operator survey results – what’s the impact of using real-time to drive real-time offers

• How does it work?

• Summary

Agenda

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Last of the Analogue Generation

• Most of us of a certain age.

• Most senior management in companies

• Devices had a main single function

Generation Now – under 25s

Generation Now

• Instant gratification of purchases

• Many never known a time without mobile

• Grown up with digital technology

• Smartphones and tablets are the new shops

• Expect and want stuff now and will buy it using technology (smartphones, tablets)

• 2.9 bn people (50% of world’s population) are under 25

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• This represents a significant opportunity for operators

• They have the customer relationships

• They have the opportunity to upsell new products and services (both their own and 3rd parties – e.g. content partners)

• They have the financial relationships with customers – billing, prepaid top ups, direct operator billing

• They have the business intelligence on customer behaviour

• They have the customer context – e.g. location, service being accessed (or tried), customer behaviour – in real-time

Generation Now Wants Stuff Now (aka Real-time)

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• Traditionally offers are not real-time. They depend on either pre-planned/pre-configured schedules, or off-line processing based on historic activity.

• Real-time offer presentation after intelligent offer mapping, and presentation of contextually appropriate offers can increase data revenues

• Also need orchestrated offer provisioning to deliver offers in real-time

Real-time Data – Driving Real-time Offers

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• Combine customer context and real-time data

• Use this to make a real-time offer, that is relevant and timely, to a customer

• Can significantly increase data revenues

• Increase customer satisfaction, reduce customer care costs, increase net promoter score

• Making offers in real-time that are contextually aware - increase relevance to each customer

Real-time Data – Making an Impact on Corporate Performance

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• Openet surveyed 85 mobile operators in October 2014 on the impact of real-time contextually aware offers

The $47 Billion Opportunity

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How Important are Real-Time Offers in Increasing Data Revenue?

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Current Status and Upsell Effectiveness

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What Impact do Operators Forecast?

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Centralizing Offers: Impact on Time of Market

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Centralized Offers – Current Status

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The Context:

• Facebook have amended their app and service in a new update

• The app now includes far more HD video. Users are rushing through their data allowances.

• The operator DPI system is capable of identifying it’s app traffic distinctly.

• In todays traffic reports, Facebook traffic was identified by the operator as having grown dramatically overnight, both in terms of engagement levels and user numbers

Example: New OTT App – Facebook

The Context

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The Service Offer

• The following morning, the IT department added 7 new service pass plans for users of Facebook, based on existing offer packages

• Offers include a simple data allocation increase, an unlimited Facebook option with different timeframes (1, 3, 7 days), and a Facebook with no video option with different timeframes (again 1, 3, 7 days)

• Offers will be trialled with a maximum 100 subscribers each, to determine effectiveness and profitability

New OTT App – Operator Response

Fast Response - Operator Service Offers

The Context

The Service Offer

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The Context Meet Tim.

• Tim is a long time Facebook user, but has limited monthly data consumption. With the change in service, he is now using significantly more data through the Facebook app.

• Tim is a valued, but low ARPU customer. He has a small data balance between now and the end of the month, not enough to consume a lot of video.

• When Tim goes onto Facebook he is presented with an offer for one days unlimited access with HD video for $1.

• This is one of the new service offers.

• Tim accepts, and is instantly notified that he has been granted unlimited access to the service for that day.

New OTT App – The Subscriber

Fast Response - Operator Service Offers

The Service Offer

The Subscriber

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1. Offers can be created, changed and updated very quickly

2. More granular offers mean more tailored upsell, which can be triggered by real-time subscriber activity

3. Once added to the offer catalog, offers will be instantly available to appropriate subscribers

4. Once activated by a subscriber, offers will be provisioned through any necessary BSS components

5. Offer effectiveness can be reported on in real-time, to understand uptake and profitability metrics.

5 Benefits for the Operator

So how was this done?

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• An offer is presented to the subscriber following a trigger event (1), either an inbound subscriber query, or a pre-defined network event (e.g. subscriber accesses Facebook)

• Real-time Offer Manager will decide which offers to present to the subscriber, by first verifying their context (2) across multiple control points.

• If the context is determined suitable (3), one or more offers will be presented to the subscriber (4) and provisioned on acceptance

• Offer analysis (5) can determine new offers, and advise where to refine the existing catalog

Closing the Offer Management Loop

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• Using real-time data to drive marketing and sales offers can:

• Increase upsell rates from 8% to 14%

• Generate an additional 15% data revenues – representing $47bn opportunity to the global mobile market (based on 2014 global service revenue of $1.01 trillion)

• 34% of operators currently have the capability to provide real-time contextual offers

• Significant opportunity here to use real-time data to drive relevant offers to the now generation

• Download Openet’s Operator Survey Research Report: The Revenue Impact of Real-time Contextual Offers – www.openet.com

Conclusion