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Customer data driven 
marketing for digital services
Contents 
1. Executive summary 3 
• Catalyst 
• Executive overview 
• Key messages 
2. Market context 5 
• The importance of digital services 
• The data dilemma 
3. Ensuring higher adoption rates 7 
• Turning user data in to customer data 
• Directing the search and discovery 
4. Enhance revenue streams through targeted marketing 
and personalized services 
• Ensure you have a value proposition to convey 
• Precision marketing to boost usage with soft targets 
• Customer data underpins service personalization 
9 
5. Exploit upsell opportunities 
12 
6. Managing churn 13 
• Getting the basics right 
7. Give greater management and control to customers 14 
8. Right-sizing the operators’ commercial response 14 
• Dimension data packs to support offers to customers 
9. Appendix 15 
• About Mahindra Comviva 
• Ovum Consulting 
• Disclaimer 
© Ovum. Unauthorized reproduction prohibited. 2
Executive summary 
Catalyst 
Using customer data to better target marketing 
campaigns is recommended practice. As digital 
services gain in prominence, the ability to access 
and action specific insights on customers 
becomes even more important. Using more 
detailed information to personalize those services 
and marketing offers is the surest way that 
operators can maintain and efficient operation, 
delight customers and generate the kind of value 
that will positively impact their top line growth. 
Executive overview 
Frequent outbound marketing campaigns have 
become part of daily life for operators and their 
customers. However blanket promotions, 
extending the same deal to the entire subscriber 
base, can backfire. They are costly to deliver, may 
cannibalize existing revenues, and return a poor 
response rate, and messages that are consid-ered 
as irrelevant spam by the recipient are 
more likely to annoy than delight them. 
To reverse these factors - to make outbound 
marketing cost effective, enhance revenues and 
return a high response rate – operators need to 
be able to segment customer data and use 
analytics to extract insights that allow them to 
match their customers with personalized 
promotions and value-added services at the right 
time. In addition, operators want to be able to use 
that access to customer data and the insights 
they derive, to cross-sell further offers, as well as 
offer that insight to interested third parties. 
Operators therefore need customer data 
analytics tools to make this happen, and this 
paper will look at how operators in mature and 
emerging markets can use customer data to 
increase their services revenues through better 
management of the customer journey, and by 
targeting their marketing activities across 
multiple digital services. 
© Ovum. Unauthorized reproduction prohibited. 3
Key messages 
Operators hold enormous amounts of 
information on user behavior and consump-tion 
patterns. They also have very pertinent 
offers that they could make, but still struggle 
with linking the customers with the right offer 
at the right time. 
Analyzing user behavior as they search and 
discover the operator’s services can provide 
insights that convert users to customers. 
Providing a service that is customized to an 
individual profile, particularly where specific 
music and content likes and preferences 
are taken into consideration, can provide an 
enhanced revenue stream from existing 
customers. 
Once customer data has been extracted and 
analyzed, operators can use the data to offer 
third parties similar insights. 
Customers like to control their own destiny, 
so it is important that operators provide 
transparency and controls on how their 
customer data is used and shared. 
Operators need to ensure they link their 
marketing offers to their provisioning capabili-ties, 
so that the right data packs and tariff 
plans are offers with promotions. 
Operators need to investigate the analytics 
tools that will allow them to develop 
data-driven marketing programs that are fit 
for purpose. 
© Ovum. Unauthorized reproduction prohibited. 4
Market context 
The importance of digital 
services 
Digital services are used by customers to 
communicate in their daily lives, and are increas-ingly 
used for a wide array of infotainment 
activities. The operator services portfolio has 
expanded considerably as service providers use 
their network to deliver all manner of applications 
and value-added service from health education, to 
finance and gaming. The channels to access 
these services are equally diverse and range 
from well-established SMS, Unstructured 
Supplementary Service Data (USSD) technology 
for GSM and PCN networks, as well as more 
recent portals and social media. Operators need 
to use the customer information all this activity 
generates to direct their own sales, marketing, 
and customer care investments and have a clear 
outbound marketing strategy to optimize the 
channels that best suit their various customer 
segments. 
If a customer has interacted via an IVR or contact 
center, then the window of opportunity to 
positively influence that customer is around the 
2-3 minute mark. It is therefore imperative that 
telcos use their SMS channels or portals to 
solicit feedback and get the interaction with their 
customer right. In mature markets, online digital 
channels (website or portal) are increasingly the 
predominant (and in the case of low cost brands 
and MVNOs, the only) method for operators to 
engage with customers. The operator has only a 
few seconds to influence would-be customers or 
upsell to existing customers, Analyzing customer 
data can play a valuable role in helping marketers 
to judge the effectiveness of their web or portal 
content, as well as helping them to target each 
visitor with the right content. 
The data dilemma 
Operators hold customer data in a variety of 
locations - central and distributed databases, 
OSS, BSS and CRM systems. Even in the mobile 
prepaid world, operators collect personal data 
through registration and billing as well as through 
ongoing usage. The data can be used to support 
sales, fulfillment, marketing, care and billing 
systems activities, however operators are unable 
to fully leverage the true value of the data due to 
the absence of an end-to-end view of the various 
process engagements (search and discovery, 
order-to-activation, time-to-resolve) and lack of 
actionable insights. In a recent Ovum survey, only 
27% of operators claimed to have fully deployed 
customer analytics (see Figure 1), and it is this 
lack of insight that makes it difficult for operators 
to optimize interaction with their customers. 
Obtaining insights from customer data should be 
the cornerstone of any marketing campaign, but 
it should begin even earlier, at the search and 
discovery phase, as customers investigate the 
best offer, and again during the order-to-activate 
process. 
© Ovum. Unauthorized reproduction prohibited. 5
Figure 1. Operator BI deployments for customer intelligence 
Not considering 
Considering Fully deployed 
21% 
Planning Trialling 
If operators are able to leverage this data they 
would be in a far better position to improve their 
marketing campaigns and customer engagement 
processes. Effective use of customer data allows 
operators to improve in many areas, but the 
most immediate benefits are: 
higher adoptions rates through managed 
search and discovery, and targeted 
campaigns 
27% 
12% 
9% 
31% 
Source: ICT Enterprise Insights, Global Telecoms, Sept 2013, n=454 
enhanced revenue streams through delivery of 
personalized services 
ability to fully exploit upsell opportunities 
managing churn 
greater management and control to customers, 
and 
‘right-sizing’ of commercial offers to customers. 
© Ovum. Unauthorized reproduction prohibited. 6
Ensuring higher adoption 
rates 
Turning user data in to 
customer data 
Individual key clicks, navigation through an IVR, 
the percentage of abandoned calls, and conver-sion 
rates can all be gathered and aggregated 
using analytics. By monitoring where and how 
users interact with the operator and where they 
abandon visits, operators can work to improve 
their outreach programs. The most advanced 
analytics packages support automated behavioral 
targeting and use a self-learning engine to build 
unique visitor profiles based on individual visitor 
data and click scoring to websites. This allows 
personalized content to be delivered based on a 
person’s past and current interests, even if they 
are not an existing customers. However, being 
able to recognize a subscriber and their location 
and any point in time is also important in deter-mining 
a preventative activity or proactive 
response. 
The biggest value from analytics for marketing 
departments is the ability to gather profiling 
information on a visitor, allowing goods and 
services to be targeted at individuals, based on 
when and how they contact an operator. Each 
time a user responds to an SMS messageor 
returns to the website, the amount of data 
collected about that user will increase, resulting 
in the ability to further refine the products 
presented to that visitor and increase the 
likelihood of converting them in to a customer. 
Figure 2. Maximizing data points in the customer journey 
Customer journey 
Brand awareness Offer Transaction Support Retention Advocacy 
evaluation 
Customer engagement touchpoints 
Channel 
investigation 
Marketing Acquisition 
Customer 
(value) 
management 
Personalized 
services 
Targeted 
marketing 
campaigns 
Role of big data analytics 
Attract desired 
customer profile propensity 
Influence On board Minimize Uplift net Increase 
to churn 
next best 
offer 
with correct 
tariff 
promoter 
score 
average 
spend 
Source: OVUM 
© Ovum. Unauthorized reproduction prohibited. 7
Directing the search and 
discovery 
A n a l y t i c s p r o v i d e t h e i n f o r m a t i o n 
o p e r a t o r s n e e d t o p e r s o n a l i z e t h e 
u s e r s ’ e x p e r i e n c e . T h e l e v e l o f 
s o p h i s t i c a t i o n o f a n a l y t i c s p r o d u c t s 
h a s i n c r e a s e d g r e a t l y f r o m t h e t i m e 
w h e n t h e y w e r e o n l y a b l e t o p r o v i d e 
b a s i c i n f o r m a t i o n ; n o w i t i s p o s s i b l e t o 
s e e h o w u s e r s a c c e s s a s e r v i c e , f o r 
e x a m p l e f r o m a s e a r c h e n g i n e , b y 
t y p i n g i n t h e U R L , f r o m a s o c i a l 
n e t w o r k s i t e , o r v i a a l a n d i n g p a g e – 
a l l o f t h i s i n f o r m a t i o n c a n b e u s e d t o 
t a r g e t s p e c i f i c s e r v i c e s a t a n 
i n d i v i d u a l . 
P e r s o n a l i z a t i o n a t t h e s e a r c h a n d 
d i s c o v e r y p h a s e w i l l i n c r e a s e t h e 
l i k e l i h o o d o f a u s e r b e c o m i n g a 
c u s t o m e r . M o s t p e o p l e w i l l n o t s p e n d 
h o u r s l o o k i n g f o r w h a t t h e y w a n t , s o 
t h e a b i l i t y t o a n t i c i p a t e t h e i r 
r e q u i r e m e n t s a n d s e r v e u p t h e 
c o n t e n t t h e y r e q u i r e , w i t h a p u s h S M S 
o r a f e w c l i c k s i s a h u g e a d v a n t a g e , 
p a r t i c u l a r l y f o r m o b i l e d e v i c e s . I n 
a d d i t i o n t o i n f o r m a t i o n o n i n d i v i d u a l s , 
d a t a c a n b e a g g r e g a t e d t o p r o v i d e 
d e t a i l e d i n f o r m a t i o n o n a r a n g e o f 
f a c t o r s : t h e n u m b e r o f v i s i t o r s t o t h e 
s i t e , t h e n u m b e r o f h i t s e a c h p a g e 
r e c e i v e s , w h e r e v i s i t s w e r e 
a b a n d o n e d , a n d t h e n u m b e r s o f 
v i s i t o r s e n t e r i n g t h e s i t e b y e a c h 
r o u t e . U s i n g t h i s i n f o r m a t i o n , 
m a r k e t e r s c a n a s s e s s w h e t h e r v i s i t s 
a r e r e g u l a r l y b e i n g a b a n d o n e d a t t h e 
s a m e p o i n t , w h i c h m a y s i g n i f y a 
p r o b l e m w i t h t h e w e b s i t e s u c h a s p o o r 
c o n t e n t , d i f f i c u l t y i n n a v i g a t i n g p a s t 
t h a t p o i n t , o r a b r o k e n l i n k . 
O n c e t h e c u s t o m e r s e l e c t s a s e r v i c e 
o r o f f e r , i n t e l l i g e n t u s e o f c u s t o m e r 
d a t a c a n f a c i l i t a t e t h e o n b o a r d i n g 
p r o c e s s . C u s t o m e r s s h o u l d c e r t a i n l y 
n o t b e r e q u i r e d t o c o m p l e t e f o r m s o r 
r e s u b m i t t h e i r d e t a i l s ; a n y r e q u i r e d 
i n f o r m a t i o n s h o u l d b e a u t o m a t i c a l l y 
g e n e r a t e d f o r t h e c a r e a g e n t - b e t t e r 
s t i l l , o n e t o u c h s h o u l d b e a l l t h a t i s 
r e q u i r e d t o s i g n u p a n d a c t i v a t e t h e 
s e r v i c e o r o f f e r . 
U s i n g c u s t o m e r d a t a a n a l y t i c s , 
o p e r a t o r s c a n p r o m o t e s e r v i c e s t o t h e 
m o s t r e c e p t i v e m a r k e t s e g m e n t s a n d 
i n f l u e n c e t h e s e a r c h a n d d i s c o v e r y 
p r o c e s s . B y l o o k i n g a t c u s t o m e r 
p r o f i l e s a n d w e b s e a r c h a c t i v i t y f o r 
e x a m p l e , t h e o p e r a t o r c a n d e t e r m i n e 
c u s t o m e r p r o p e n s i t y t o a d o p t c e r t a i n 
s e r v i c e s o r o f f e r s , a n d / o r d i r e c t 
c u s t o m e r s t o a p r e d e f i n e d o r 
a p p r o p r i a t e s e t o f c h o i c e s . 
© Ovum. Unauthorized reproduction prohibited. 8
Enhance revenue streams through targeted 
marketing and personalized services 
Ensure you have a value 
proposition to convey 
A point for operators to consider before they 
embark on their marketing strategy is how they 
promote and position their digital services 
generally. For example, operators should look at 
ways to draw back from offering too many free 
services. It is hard to persuade customers of the 
value they can receive from the operator, if the 
operator itself apparently places no value on a 
service. It will be tough battle, but operators must 
try to wean customers off their flat rate and 
unlimited usage plans, and offer alternative value. 
To entice new customers and persuade existing 
customer to invest further in the brand, opera-tors 
often swamp customers with multiple 
marketing offers and associated product 
campaigns via email and SMS. Again, operators 
should reflect on the wisdom of this action. 
Sending out offers to the entire customer base is 
the mark of careless business that confuses 
activity with productivity and equates volume with 
value. An outreach to the entire user base is 
rarely cost effective or profitable, as it does not 
take in to consideration the value or profitability 
or each customer, nor does it increase the upsell 
and cross-sell opportunities, or associated 
customer loyalty and satisfaction. 
Figure 3. Targeted marketing opportunites using customer data analytics 
Sell to 3rd party 
Up & cross sell Next best offer 
Targeted 
marketing 
opportunities 
Campaign 
management 
Precision 
marketing 
Personalized 
services 
Source: OVUM 
© Ovum. Unauthorized reproduction prohibited. 9
Precision marketing to 
boost usage with soft 
targets 
O p e r a t o r s c a n g a i n s o m e q u i c k w i n s 
f o r r e v e n u e e n h a n c e m e n t b y t a r g e t i n g 
t h o s e a r e a s c a p a b l e o f d e m o n s t r a t i n g 
q u i c k r e t u r n s w i t h m i n i m u m 
i n v e s t m e n t . S u c h a r e a s i n c l u d e 
i m p r o v i n g r e c h a r g e f r e q u e n c y a m o n g 
t a r g e t e d s e g m e n t s , p a r t i c u l a r l y t h e 
m u l t i - S I M c u s t o m e r s , o r r e a c t i v a t i n g 
d o r m a n t c u s t o m e r s . 
M o s t l o y a l t y m a r k e t i n g p r o g r a m s 
r e w a r d f r e q u e n t u s e r s a n d e n c o u r a g e 
g r e a t e r o r d i f f e r e n t t y p e s o f u s a g e . 
T h e y r a r e l y l o o k a t c u s t o m e r s w i t h 
m o r e i r r e g u l a r u s a g e p a t t e r n s . M T N 
N i g e r i a , f o r e x a m p l e , a n a l y z e d 
c u s t o m e r s ’ u s a g e p a t t e r n s t o i d e n t i f y 
m u l t i - S I M u s e r s . I n d i c a t o r s i n c l u d e d a 
v a r i a t i o n i n t h e n o r m a l t o p - u p 
p a t t e r n s . F o r e x a m p l e , i f t h e c u s t o m e r 
d i d n o t r e c h a r g e f o r a c o u p l e o f 
w e e k s , a n d t h e n e v e n t u a l l y t o p s u p 
w i t h a l o w e r w e e k l y a m o u n t t h a n 
n o r m a l , o r o n l y m a k e s o n - n e t c a l l s o r 
s e n d s S M S – t h i s b e h a v i o u r i n d i c a t e s 
a n i n c r e a s e d l i k e l i h o o d t o c h u r n t o a 
c o m p e t i t o r . B y m o n i t o r i n g e x a c t l y 
t h e s e a c t i v i t i e s , M T N N i g e r i a w a s a b l e 
t o p u s h s u i t a b l e o f f e r s t o t h i s g r o u p , 
a n d i n c r e a s e f r e q u e n c y o f u s a g e a n d 
t h e t o p - u p a m o u n t s a n d s o m i t i g a t e 
t h e c h u r n r i s k 
Customer data underpins 
service personalization 
W h e n o n e c o n s i d e r s t h e d i g i t a l n o i s e 
t h a t o c c u r s i n c u s t o m e r s ’ w o r k a n d 
s o c i a l s p a c e , o p e r a t o r s n e e d t o 
e n s u r e t h a t t h e i r c u s t o m e r s d o n ’ t j u s t 
h e a r , b u t a c t u a l l y l i s t e n t o w h a t t h e y 
h a v e o n o f f e r c o m p a r e d t o t h e i r 
c o m p e t i t o r s . L i s t e n i n g o n l y c o m e s 
a b o u t w h e n t h e o p e r a t o r i s p r o a c t i v e l y 
p u s h i n g o u t r e l e v a n t a n d p e r s o n a l i z e d 
s u p p o r t a n d o f f e r s , a t t h e r i g h t p o i n t 
i n t i m e . 
A p p l y i n g a r i n g - b a c k t o n e t o a 
p a r t i c u l a r c a l l e r i s a s i m p l e e x a m p l e 
o f v a l u e - a d d e d f e a t u r e s t h a t 
c u s t o m e r s w a n t f r o m t h e i r o p e r a t o r s , 
b u t o p e r a t o r s ’ m a r k e t i n g d e p a r t m e n t s 
c a n t a k e t h i s t o t h e n e x t l e v e l w i t h 
f u r t h e r p e r s o n a l i z a t i o n . F o r e x a m p l e , 
I n d i a n o p e r a t o r A i r t e l h a s r o l l e d o u t a 
‘ H e l l o T u n e s ’ s e r v i c e a c r o s s i t s 
p r o p e r t i e s . H e l l o T u n e s a l l o w s 
c u s t o m e r s t o p l a y a n o u t b o u n d 
r i n g b a c k t o n e b a s e d o n t h e i r o w n 
m o o d o r c o n t e x t , s o w h i l e t h e c a l l e r i s 
w a i t i n g t o b e c o n n e c t e d , t h e y w i l l h e a r 
a s o n g r a t h e r t h a n j u s t t h e ‘ r i n g , r i n g ’ . 
A i r t e l c l a i m s t h i s t h i s t y p e o f s e r v i c e 
a l o n e h a s i n c r e a s e d r e v e n u e f r o m 
d o w n l o a d s , a n d i n c r e a s e d i t s 
s u b s c r i b e r b a s e a n d r e v e n u e s o v e r a l l . 
© Ovum. Unauthorized reproduction prohibited. 10
C u s t o m e r s c o u l d s e l e c t m u s i c t r a c k s 
f r o m a b r o a d s t o r e f r o n t , w h i c h 
p r o m o t e d c a t e g o r i z a t i o n s b y g e n r e , 
i n t e r n a t i o n a l s o n g s , l a t e s t s o n g s a n d 
t o p 1 0 b e s t s e l l e r s a n d s o f o r t h . 
H o w e v e r t h i s d i d n o t a d d r e s s p e r s o n a l 
p r e f e r e n c e s , a n d f o r s o m e c u s t o m e r s , 
i t w a s a l m o s t i m p o s s i b l e t o f i n d a 
p a r t i c u l a r m u s i c t r a c k . F o r e x a m p l e , 
7 0 % o f u s e r s i n C i r c l e s B a n d C i n 
I n d i a u s e I V R a s t h e p r e d o m i n a n t 
s e r v i c e a c c e s s c h a n n e l , a n d 
c u s t o m e r s h a d t o w o r k t h r o u g h 
l e n g t h y m e n u s a n d i n c u r h i g h I V R 
b r o w s i n g c h a r g e s t o f i n d a t o n e o f 
t h e i r c h o i c e . 
H e l l o T u n e s i s p a r t o f a b r o a d e r 
M y L i k e s p r o p o s i t i o n t h a t p r o v i d e s a 
p e r s o n a l i z e d m u s i c s t o r e f r o n t . I t 
m a k e s r e l e v a n t r e c o m m e n d a t i o n s i n 
r e a l - t i m e b a s e d o n e a c h c u s t o m e r ’ s 
m u s i c a c t i v i t y a n d p r e f e r e n c e , c u r r e n t 
t r e n d s a s w e l l a s m u s i c c o m p a t i b i l i t y 
a m o n g l i s t e n e r s ( s e e F i g u r e 4 ) . 
Figure 4. Airtel’s MyLikes - Matching customers and their music preferences 
Data feed 
Hello Tunes usage pattern Social Media Data 
Customer lifecycle 
Charging Data 
S E A R C H 
Search Keywords 
Demographic profile (KYC) 
Rule-based processing 
Combines... 
Customer’s 
demographic 
information 
Service 
In-session 
behavior + + + 
transactional 
patterns 
Wisdom of 
crowds 
... to profile users and deliver an individualized music experience 
Integrates with multiple touch points 
www. 
© Ovum. Unauthorized reproduction prohibited. 11 
IVR/IBD/VN SMS/USSD Call center WAP/WEB Search 
Source: Mahindra Comviva 
© Ovum. Unauthorized reproduction prohibited. 11
Exploit upsell opportunities 
The attractiveness of an offer will be relative to 
each user, so the operator has to be able to 
either push personalized offers, services and 
support to the customer, or help them navigate 
their way to appropriate choices and then 
facilitate seamless delivery of those choices. 
Operators need to investigate the analytics tools 
that will allow them to develop data-driven 
marketing programs that are fit for purpose in 
the digital driven market place. Specialized teams 
will review customer profiles and use this as a 
basis to assess their propensity to buy certain 
products. They can then proactively push a 
personalized offer via SMS or email, and live care 
agents can use customer data profiles to 
recommend the next best offer (NBO). At this 
point, the customer should also be made aware 
of any additional items they might need in order 
to access and use the services – for example a 
specific data pack, tariffs plan, minimum speed or 
device type. 
Analytics can be used to create personalized 
tariffs that provide the best value for a customer 
without reducing ARPU. Any offers or discounts 
can be applied to the most suitable plan and 
flexed to suit the customer’s perceived value to 
the operators. 
Once customer data has been extracted and 
analyzed for their own benefit, operators can 
offer third parties similar insights. However, 
operators need to take care to manage personal 
and data privacy issues by aggregating and 
anonymizing customer data. Operators cannot 
make money from reselling raw personal data. 
Sharing or selling on individual customer data can 
lead to legal issues, particularly within the 
European Union. Privacy policies typically state 
that personal information can only be shared 
externally with the user’s consent or knowledge, 
or if it has been anonymized. This means that 
third parties will be able to see data on groups of 
customers displaying similar characteristics (for 
example a socio-economic or age groups) behave 
in certain conditions, but they would not be able 
to see an individual's personal information. 
Telefonica Dynamic Insights and Verizon’s 
Precision Market Insights are two examples 
where the operators have resold customers 
insights to third parties for marketing purposes 
at physical venues. Arguably they both also give 
good levels of management and control to 
customers. 
© Ovum. Unauthorized reproduction prohibited. 12
Managing churn 
Getting the basics right 
Managing and minimizing churn is a prerequisite 
to staying in business. The launch of new 
technologies (for example 4G), services, or 
devices are event-driven triggers for behavioral 
tipping points that are easy to identify. In terms of 
the ongoing daily business operation, it is impor-tant 
to ensure that customer behavior and usage 
patterns are monitored to pick up the more 
subtle changes. Operators are then in a position 
to program their decision engines to identify and 
anticipate churn and action remedies, which will 
depend on current and potential value of the 
customer. 
A leading operator in Sri Lanka, for example, uses 
a recharge frequency model (RFM) to score and 
segment customers based on transactional value 
and profitability. The model takes information 
such as the subscriber ID, their total usage, total 
number of incoming minutes, their age and so 
forth and applies a learning algorithm based on a 
decision tree and logistic regression. The output 
action could be to allow the customer to churn; to 
promote new services and offers to increase 
loyalty and grow the customers’ spend or bundle 
of services; or they may reward their most 
valuable customers. 
Preventing churn uses a similar set of inputs to 
precision marketing decisions, and can be used 
to prevent churn at the end of a contract or 
period of credit. Clearly the time to intervene is 
not when the customer calls to ask for their 
porting authorization code (PAC), but rather it is 
better to automatically track the customers’ 
behavior in the three months prior to the end of 
the contract to see whether they have: 
made fewer calls and/or not exceed the cost 
of their basic bundle 
enquired directly about upgrading their 
device and/or package 
responded to certain offers 
searched for new offers, or 
made calls to a competitors’ customer 
service numbers. 
These are a few of the patterns that can be 
identified if the operator monitors customer data 
(pre-paid customers can merely drop off and the 
problem is more acute on account of the 
non-contractual nature of prepaid services). 
© Ovum. Unauthorized reproduction prohibited. 13
Give greater management and control to customers 
This is the next step in the customer-operator 
relationship, where the operator allows 
customers to control and manage their own data, 
and where the operator provides transparency 
on how their data is used and shared. For 
example, operators could build trust by seeking a 
customer’s permission on how to engage with 
them (what is their preferred channel and how 
frequently do they want to be contacted), which 
may increase the amount of personal data that 
customers will provide. With the right security 
and privacy controls in place, operators 
(particularly those in mature markets and with 
certain demographic groups) can enhance their 
relationships with subscribers. This has been 
used to great effect by O2 in the UK for example. 
O2’s Priority Moments is an opt-in service that 
give customers priority access to O2 sponsored 
events. 
One aspect that operators do not seem to be 
aware of is that generally customers trust them 
with their data – certainly more than their OTT 
counterparts. Operators have a good opportunity 
to obtain more information and data about their 
customers, simply by asking them for it! 
Right-sizing the operators’ commercial response 
Dimension data packs to 
support offers to customers 
It is important that operators use the customer 
data and usage information to ensure that when 
a customer signs up to a new service, that they 
do indeed have all the components in place to 
obtain the service. For example, if the customer 
signs for new services and then tries to use it, 
only to find that their current plan doesn’t allow 
them to activate the service, or they don’t have a 
big enough data plan or the necessary speed 
available, the customer will be not only be 
frustrated and disappointed, but far less likely to 
try new services in the future. As soon as a 
customer tries to buy a new service, all the 
components should be highlighted that they 
either need to purchase or order to obtain the 
service. This can only be achieved by using 
analytics to correlate the customer profile with 
the desired services 
© Ovum. Unauthorized reproduction prohibited. 14
Appendix 
This white paper was researched, authored and produced by Ovum in association with 
Mahindra Comviva, as part of a series of papers assessing the current state and future 
market direction of mobile broadband services for mobile operators. 
About Mahindra Comviva 
Mahindra Comviva is the global leader in providing mobility solutions. It is a subsidiary of 
Tech Mahindra and a part of the USD 16.7 billion Mahindra Group. With an extensive port-folio 
spanning mobile finance, content, infotainment, messaging and mobile data solutions, 
Mahindra Comviva enables service providers to enhance customer experience, rationalize 
costs and accelerate revenue growth. Its mobility solutions are deployed by 130 mobile 
service providers and financial institutions in 90 plus countries, transforming the lives of 
over a billion people across the world. For more information, please visit 
www.mahindracomviva.com. 
Ovum Consulting 
Ovum has an enviable and hard-earned reputation as a provider of telecoms consult-ing 
services. Our consulting customers tell us that, above all else, it is Ovum's industry 
knowledge and at tention to detail that puts us ahead of our competitors. This is 
directly related to the expertise of our consultants and analysts, and the project and 
research methodologies we use. We work across the globe with business leaders of 
telecoms operators, service providers and ICT vendors and with investment banks, 
governments and industry regulators. We hope that this analysis will help you make 
informed and imaginative business decisions. If you have further requirements, 
Ovum’s consulting team may be able to help you. For more information about Ovum’s 
consulting capabilities, please contact us directly at consulting@ovum.com. 
Disclaimer 
All Rights Reserved. 
No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form by any means, electronic, mechanical, 
photocopying, recording, or otherwise, without the prior permission of the publisher, Ovum (an Informa business). 
The facts of this report are believed to be correct at the time of publication but cannot be guaranteed. Please note that the findings, 
conclusions, and recommendations that Ovum delivers will be based on information gathered in good faith from both primary and secondary 
sources, whose accuracy we are not always in a position to guarantee. As such Ovum can accept no liability whatever for actions taken based 
on any information that may subsequently prove to be incorrect.

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Customer data driven marketing for digital services

  • 1. Customer data driven marketing for digital services
  • 2. Contents 1. Executive summary 3 • Catalyst • Executive overview • Key messages 2. Market context 5 • The importance of digital services • The data dilemma 3. Ensuring higher adoption rates 7 • Turning user data in to customer data • Directing the search and discovery 4. Enhance revenue streams through targeted marketing and personalized services • Ensure you have a value proposition to convey • Precision marketing to boost usage with soft targets • Customer data underpins service personalization 9 5. Exploit upsell opportunities 12 6. Managing churn 13 • Getting the basics right 7. Give greater management and control to customers 14 8. Right-sizing the operators’ commercial response 14 • Dimension data packs to support offers to customers 9. Appendix 15 • About Mahindra Comviva • Ovum Consulting • Disclaimer © Ovum. Unauthorized reproduction prohibited. 2
  • 3. Executive summary Catalyst Using customer data to better target marketing campaigns is recommended practice. As digital services gain in prominence, the ability to access and action specific insights on customers becomes even more important. Using more detailed information to personalize those services and marketing offers is the surest way that operators can maintain and efficient operation, delight customers and generate the kind of value that will positively impact their top line growth. Executive overview Frequent outbound marketing campaigns have become part of daily life for operators and their customers. However blanket promotions, extending the same deal to the entire subscriber base, can backfire. They are costly to deliver, may cannibalize existing revenues, and return a poor response rate, and messages that are consid-ered as irrelevant spam by the recipient are more likely to annoy than delight them. To reverse these factors - to make outbound marketing cost effective, enhance revenues and return a high response rate – operators need to be able to segment customer data and use analytics to extract insights that allow them to match their customers with personalized promotions and value-added services at the right time. In addition, operators want to be able to use that access to customer data and the insights they derive, to cross-sell further offers, as well as offer that insight to interested third parties. Operators therefore need customer data analytics tools to make this happen, and this paper will look at how operators in mature and emerging markets can use customer data to increase their services revenues through better management of the customer journey, and by targeting their marketing activities across multiple digital services. © Ovum. Unauthorized reproduction prohibited. 3
  • 4. Key messages Operators hold enormous amounts of information on user behavior and consump-tion patterns. They also have very pertinent offers that they could make, but still struggle with linking the customers with the right offer at the right time. Analyzing user behavior as they search and discover the operator’s services can provide insights that convert users to customers. Providing a service that is customized to an individual profile, particularly where specific music and content likes and preferences are taken into consideration, can provide an enhanced revenue stream from existing customers. Once customer data has been extracted and analyzed, operators can use the data to offer third parties similar insights. Customers like to control their own destiny, so it is important that operators provide transparency and controls on how their customer data is used and shared. Operators need to ensure they link their marketing offers to their provisioning capabili-ties, so that the right data packs and tariff plans are offers with promotions. Operators need to investigate the analytics tools that will allow them to develop data-driven marketing programs that are fit for purpose. © Ovum. Unauthorized reproduction prohibited. 4
  • 5. Market context The importance of digital services Digital services are used by customers to communicate in their daily lives, and are increas-ingly used for a wide array of infotainment activities. The operator services portfolio has expanded considerably as service providers use their network to deliver all manner of applications and value-added service from health education, to finance and gaming. The channels to access these services are equally diverse and range from well-established SMS, Unstructured Supplementary Service Data (USSD) technology for GSM and PCN networks, as well as more recent portals and social media. Operators need to use the customer information all this activity generates to direct their own sales, marketing, and customer care investments and have a clear outbound marketing strategy to optimize the channels that best suit their various customer segments. If a customer has interacted via an IVR or contact center, then the window of opportunity to positively influence that customer is around the 2-3 minute mark. It is therefore imperative that telcos use their SMS channels or portals to solicit feedback and get the interaction with their customer right. In mature markets, online digital channels (website or portal) are increasingly the predominant (and in the case of low cost brands and MVNOs, the only) method for operators to engage with customers. The operator has only a few seconds to influence would-be customers or upsell to existing customers, Analyzing customer data can play a valuable role in helping marketers to judge the effectiveness of their web or portal content, as well as helping them to target each visitor with the right content. The data dilemma Operators hold customer data in a variety of locations - central and distributed databases, OSS, BSS and CRM systems. Even in the mobile prepaid world, operators collect personal data through registration and billing as well as through ongoing usage. The data can be used to support sales, fulfillment, marketing, care and billing systems activities, however operators are unable to fully leverage the true value of the data due to the absence of an end-to-end view of the various process engagements (search and discovery, order-to-activation, time-to-resolve) and lack of actionable insights. In a recent Ovum survey, only 27% of operators claimed to have fully deployed customer analytics (see Figure 1), and it is this lack of insight that makes it difficult for operators to optimize interaction with their customers. Obtaining insights from customer data should be the cornerstone of any marketing campaign, but it should begin even earlier, at the search and discovery phase, as customers investigate the best offer, and again during the order-to-activate process. © Ovum. Unauthorized reproduction prohibited. 5
  • 6. Figure 1. Operator BI deployments for customer intelligence Not considering Considering Fully deployed 21% Planning Trialling If operators are able to leverage this data they would be in a far better position to improve their marketing campaigns and customer engagement processes. Effective use of customer data allows operators to improve in many areas, but the most immediate benefits are: higher adoptions rates through managed search and discovery, and targeted campaigns 27% 12% 9% 31% Source: ICT Enterprise Insights, Global Telecoms, Sept 2013, n=454 enhanced revenue streams through delivery of personalized services ability to fully exploit upsell opportunities managing churn greater management and control to customers, and ‘right-sizing’ of commercial offers to customers. © Ovum. Unauthorized reproduction prohibited. 6
  • 7. Ensuring higher adoption rates Turning user data in to customer data Individual key clicks, navigation through an IVR, the percentage of abandoned calls, and conver-sion rates can all be gathered and aggregated using analytics. By monitoring where and how users interact with the operator and where they abandon visits, operators can work to improve their outreach programs. The most advanced analytics packages support automated behavioral targeting and use a self-learning engine to build unique visitor profiles based on individual visitor data and click scoring to websites. This allows personalized content to be delivered based on a person’s past and current interests, even if they are not an existing customers. However, being able to recognize a subscriber and their location and any point in time is also important in deter-mining a preventative activity or proactive response. The biggest value from analytics for marketing departments is the ability to gather profiling information on a visitor, allowing goods and services to be targeted at individuals, based on when and how they contact an operator. Each time a user responds to an SMS messageor returns to the website, the amount of data collected about that user will increase, resulting in the ability to further refine the products presented to that visitor and increase the likelihood of converting them in to a customer. Figure 2. Maximizing data points in the customer journey Customer journey Brand awareness Offer Transaction Support Retention Advocacy evaluation Customer engagement touchpoints Channel investigation Marketing Acquisition Customer (value) management Personalized services Targeted marketing campaigns Role of big data analytics Attract desired customer profile propensity Influence On board Minimize Uplift net Increase to churn next best offer with correct tariff promoter score average spend Source: OVUM © Ovum. Unauthorized reproduction prohibited. 7
  • 8. Directing the search and discovery A n a l y t i c s p r o v i d e t h e i n f o r m a t i o n o p e r a t o r s n e e d t o p e r s o n a l i z e t h e u s e r s ’ e x p e r i e n c e . T h e l e v e l o f s o p h i s t i c a t i o n o f a n a l y t i c s p r o d u c t s h a s i n c r e a s e d g r e a t l y f r o m t h e t i m e w h e n t h e y w e r e o n l y a b l e t o p r o v i d e b a s i c i n f o r m a t i o n ; n o w i t i s p o s s i b l e t o s e e h o w u s e r s a c c e s s a s e r v i c e , f o r e x a m p l e f r o m a s e a r c h e n g i n e , b y t y p i n g i n t h e U R L , f r o m a s o c i a l n e t w o r k s i t e , o r v i a a l a n d i n g p a g e – a l l o f t h i s i n f o r m a t i o n c a n b e u s e d t o t a r g e t s p e c i f i c s e r v i c e s a t a n i n d i v i d u a l . P e r s o n a l i z a t i o n a t t h e s e a r c h a n d d i s c o v e r y p h a s e w i l l i n c r e a s e t h e l i k e l i h o o d o f a u s e r b e c o m i n g a c u s t o m e r . M o s t p e o p l e w i l l n o t s p e n d h o u r s l o o k i n g f o r w h a t t h e y w a n t , s o t h e a b i l i t y t o a n t i c i p a t e t h e i r r e q u i r e m e n t s a n d s e r v e u p t h e c o n t e n t t h e y r e q u i r e , w i t h a p u s h S M S o r a f e w c l i c k s i s a h u g e a d v a n t a g e , p a r t i c u l a r l y f o r m o b i l e d e v i c e s . I n a d d i t i o n t o i n f o r m a t i o n o n i n d i v i d u a l s , d a t a c a n b e a g g r e g a t e d t o p r o v i d e d e t a i l e d i n f o r m a t i o n o n a r a n g e o f f a c t o r s : t h e n u m b e r o f v i s i t o r s t o t h e s i t e , t h e n u m b e r o f h i t s e a c h p a g e r e c e i v e s , w h e r e v i s i t s w e r e a b a n d o n e d , a n d t h e n u m b e r s o f v i s i t o r s e n t e r i n g t h e s i t e b y e a c h r o u t e . U s i n g t h i s i n f o r m a t i o n , m a r k e t e r s c a n a s s e s s w h e t h e r v i s i t s a r e r e g u l a r l y b e i n g a b a n d o n e d a t t h e s a m e p o i n t , w h i c h m a y s i g n i f y a p r o b l e m w i t h t h e w e b s i t e s u c h a s p o o r c o n t e n t , d i f f i c u l t y i n n a v i g a t i n g p a s t t h a t p o i n t , o r a b r o k e n l i n k . O n c e t h e c u s t o m e r s e l e c t s a s e r v i c e o r o f f e r , i n t e l l i g e n t u s e o f c u s t o m e r d a t a c a n f a c i l i t a t e t h e o n b o a r d i n g p r o c e s s . C u s t o m e r s s h o u l d c e r t a i n l y n o t b e r e q u i r e d t o c o m p l e t e f o r m s o r r e s u b m i t t h e i r d e t a i l s ; a n y r e q u i r e d i n f o r m a t i o n s h o u l d b e a u t o m a t i c a l l y g e n e r a t e d f o r t h e c a r e a g e n t - b e t t e r s t i l l , o n e t o u c h s h o u l d b e a l l t h a t i s r e q u i r e d t o s i g n u p a n d a c t i v a t e t h e s e r v i c e o r o f f e r . U s i n g c u s t o m e r d a t a a n a l y t i c s , o p e r a t o r s c a n p r o m o t e s e r v i c e s t o t h e m o s t r e c e p t i v e m a r k e t s e g m e n t s a n d i n f l u e n c e t h e s e a r c h a n d d i s c o v e r y p r o c e s s . B y l o o k i n g a t c u s t o m e r p r o f i l e s a n d w e b s e a r c h a c t i v i t y f o r e x a m p l e , t h e o p e r a t o r c a n d e t e r m i n e c u s t o m e r p r o p e n s i t y t o a d o p t c e r t a i n s e r v i c e s o r o f f e r s , a n d / o r d i r e c t c u s t o m e r s t o a p r e d e f i n e d o r a p p r o p r i a t e s e t o f c h o i c e s . © Ovum. Unauthorized reproduction prohibited. 8
  • 9. Enhance revenue streams through targeted marketing and personalized services Ensure you have a value proposition to convey A point for operators to consider before they embark on their marketing strategy is how they promote and position their digital services generally. For example, operators should look at ways to draw back from offering too many free services. It is hard to persuade customers of the value they can receive from the operator, if the operator itself apparently places no value on a service. It will be tough battle, but operators must try to wean customers off their flat rate and unlimited usage plans, and offer alternative value. To entice new customers and persuade existing customer to invest further in the brand, opera-tors often swamp customers with multiple marketing offers and associated product campaigns via email and SMS. Again, operators should reflect on the wisdom of this action. Sending out offers to the entire customer base is the mark of careless business that confuses activity with productivity and equates volume with value. An outreach to the entire user base is rarely cost effective or profitable, as it does not take in to consideration the value or profitability or each customer, nor does it increase the upsell and cross-sell opportunities, or associated customer loyalty and satisfaction. Figure 3. Targeted marketing opportunites using customer data analytics Sell to 3rd party Up & cross sell Next best offer Targeted marketing opportunities Campaign management Precision marketing Personalized services Source: OVUM © Ovum. Unauthorized reproduction prohibited. 9
  • 10. Precision marketing to boost usage with soft targets O p e r a t o r s c a n g a i n s o m e q u i c k w i n s f o r r e v e n u e e n h a n c e m e n t b y t a r g e t i n g t h o s e a r e a s c a p a b l e o f d e m o n s t r a t i n g q u i c k r e t u r n s w i t h m i n i m u m i n v e s t m e n t . S u c h a r e a s i n c l u d e i m p r o v i n g r e c h a r g e f r e q u e n c y a m o n g t a r g e t e d s e g m e n t s , p a r t i c u l a r l y t h e m u l t i - S I M c u s t o m e r s , o r r e a c t i v a t i n g d o r m a n t c u s t o m e r s . M o s t l o y a l t y m a r k e t i n g p r o g r a m s r e w a r d f r e q u e n t u s e r s a n d e n c o u r a g e g r e a t e r o r d i f f e r e n t t y p e s o f u s a g e . T h e y r a r e l y l o o k a t c u s t o m e r s w i t h m o r e i r r e g u l a r u s a g e p a t t e r n s . M T N N i g e r i a , f o r e x a m p l e , a n a l y z e d c u s t o m e r s ’ u s a g e p a t t e r n s t o i d e n t i f y m u l t i - S I M u s e r s . I n d i c a t o r s i n c l u d e d a v a r i a t i o n i n t h e n o r m a l t o p - u p p a t t e r n s . F o r e x a m p l e , i f t h e c u s t o m e r d i d n o t r e c h a r g e f o r a c o u p l e o f w e e k s , a n d t h e n e v e n t u a l l y t o p s u p w i t h a l o w e r w e e k l y a m o u n t t h a n n o r m a l , o r o n l y m a k e s o n - n e t c a l l s o r s e n d s S M S – t h i s b e h a v i o u r i n d i c a t e s a n i n c r e a s e d l i k e l i h o o d t o c h u r n t o a c o m p e t i t o r . B y m o n i t o r i n g e x a c t l y t h e s e a c t i v i t i e s , M T N N i g e r i a w a s a b l e t o p u s h s u i t a b l e o f f e r s t o t h i s g r o u p , a n d i n c r e a s e f r e q u e n c y o f u s a g e a n d t h e t o p - u p a m o u n t s a n d s o m i t i g a t e t h e c h u r n r i s k Customer data underpins service personalization W h e n o n e c o n s i d e r s t h e d i g i t a l n o i s e t h a t o c c u r s i n c u s t o m e r s ’ w o r k a n d s o c i a l s p a c e , o p e r a t o r s n e e d t o e n s u r e t h a t t h e i r c u s t o m e r s d o n ’ t j u s t h e a r , b u t a c t u a l l y l i s t e n t o w h a t t h e y h a v e o n o f f e r c o m p a r e d t o t h e i r c o m p e t i t o r s . L i s t e n i n g o n l y c o m e s a b o u t w h e n t h e o p e r a t o r i s p r o a c t i v e l y p u s h i n g o u t r e l e v a n t a n d p e r s o n a l i z e d s u p p o r t a n d o f f e r s , a t t h e r i g h t p o i n t i n t i m e . A p p l y i n g a r i n g - b a c k t o n e t o a p a r t i c u l a r c a l l e r i s a s i m p l e e x a m p l e o f v a l u e - a d d e d f e a t u r e s t h a t c u s t o m e r s w a n t f r o m t h e i r o p e r a t o r s , b u t o p e r a t o r s ’ m a r k e t i n g d e p a r t m e n t s c a n t a k e t h i s t o t h e n e x t l e v e l w i t h f u r t h e r p e r s o n a l i z a t i o n . F o r e x a m p l e , I n d i a n o p e r a t o r A i r t e l h a s r o l l e d o u t a ‘ H e l l o T u n e s ’ s e r v i c e a c r o s s i t s p r o p e r t i e s . H e l l o T u n e s a l l o w s c u s t o m e r s t o p l a y a n o u t b o u n d r i n g b a c k t o n e b a s e d o n t h e i r o w n m o o d o r c o n t e x t , s o w h i l e t h e c a l l e r i s w a i t i n g t o b e c o n n e c t e d , t h e y w i l l h e a r a s o n g r a t h e r t h a n j u s t t h e ‘ r i n g , r i n g ’ . A i r t e l c l a i m s t h i s t h i s t y p e o f s e r v i c e a l o n e h a s i n c r e a s e d r e v e n u e f r o m d o w n l o a d s , a n d i n c r e a s e d i t s s u b s c r i b e r b a s e a n d r e v e n u e s o v e r a l l . © Ovum. Unauthorized reproduction prohibited. 10
  • 11. C u s t o m e r s c o u l d s e l e c t m u s i c t r a c k s f r o m a b r o a d s t o r e f r o n t , w h i c h p r o m o t e d c a t e g o r i z a t i o n s b y g e n r e , i n t e r n a t i o n a l s o n g s , l a t e s t s o n g s a n d t o p 1 0 b e s t s e l l e r s a n d s o f o r t h . H o w e v e r t h i s d i d n o t a d d r e s s p e r s o n a l p r e f e r e n c e s , a n d f o r s o m e c u s t o m e r s , i t w a s a l m o s t i m p o s s i b l e t o f i n d a p a r t i c u l a r m u s i c t r a c k . F o r e x a m p l e , 7 0 % o f u s e r s i n C i r c l e s B a n d C i n I n d i a u s e I V R a s t h e p r e d o m i n a n t s e r v i c e a c c e s s c h a n n e l , a n d c u s t o m e r s h a d t o w o r k t h r o u g h l e n g t h y m e n u s a n d i n c u r h i g h I V R b r o w s i n g c h a r g e s t o f i n d a t o n e o f t h e i r c h o i c e . H e l l o T u n e s i s p a r t o f a b r o a d e r M y L i k e s p r o p o s i t i o n t h a t p r o v i d e s a p e r s o n a l i z e d m u s i c s t o r e f r o n t . I t m a k e s r e l e v a n t r e c o m m e n d a t i o n s i n r e a l - t i m e b a s e d o n e a c h c u s t o m e r ’ s m u s i c a c t i v i t y a n d p r e f e r e n c e , c u r r e n t t r e n d s a s w e l l a s m u s i c c o m p a t i b i l i t y a m o n g l i s t e n e r s ( s e e F i g u r e 4 ) . Figure 4. Airtel’s MyLikes - Matching customers and their music preferences Data feed Hello Tunes usage pattern Social Media Data Customer lifecycle Charging Data S E A R C H Search Keywords Demographic profile (KYC) Rule-based processing Combines... Customer’s demographic information Service In-session behavior + + + transactional patterns Wisdom of crowds ... to profile users and deliver an individualized music experience Integrates with multiple touch points www. © Ovum. Unauthorized reproduction prohibited. 11 IVR/IBD/VN SMS/USSD Call center WAP/WEB Search Source: Mahindra Comviva © Ovum. Unauthorized reproduction prohibited. 11
  • 12. Exploit upsell opportunities The attractiveness of an offer will be relative to each user, so the operator has to be able to either push personalized offers, services and support to the customer, or help them navigate their way to appropriate choices and then facilitate seamless delivery of those choices. Operators need to investigate the analytics tools that will allow them to develop data-driven marketing programs that are fit for purpose in the digital driven market place. Specialized teams will review customer profiles and use this as a basis to assess their propensity to buy certain products. They can then proactively push a personalized offer via SMS or email, and live care agents can use customer data profiles to recommend the next best offer (NBO). At this point, the customer should also be made aware of any additional items they might need in order to access and use the services – for example a specific data pack, tariffs plan, minimum speed or device type. Analytics can be used to create personalized tariffs that provide the best value for a customer without reducing ARPU. Any offers or discounts can be applied to the most suitable plan and flexed to suit the customer’s perceived value to the operators. Once customer data has been extracted and analyzed for their own benefit, operators can offer third parties similar insights. However, operators need to take care to manage personal and data privacy issues by aggregating and anonymizing customer data. Operators cannot make money from reselling raw personal data. Sharing or selling on individual customer data can lead to legal issues, particularly within the European Union. Privacy policies typically state that personal information can only be shared externally with the user’s consent or knowledge, or if it has been anonymized. This means that third parties will be able to see data on groups of customers displaying similar characteristics (for example a socio-economic or age groups) behave in certain conditions, but they would not be able to see an individual's personal information. Telefonica Dynamic Insights and Verizon’s Precision Market Insights are two examples where the operators have resold customers insights to third parties for marketing purposes at physical venues. Arguably they both also give good levels of management and control to customers. © Ovum. Unauthorized reproduction prohibited. 12
  • 13. Managing churn Getting the basics right Managing and minimizing churn is a prerequisite to staying in business. The launch of new technologies (for example 4G), services, or devices are event-driven triggers for behavioral tipping points that are easy to identify. In terms of the ongoing daily business operation, it is impor-tant to ensure that customer behavior and usage patterns are monitored to pick up the more subtle changes. Operators are then in a position to program their decision engines to identify and anticipate churn and action remedies, which will depend on current and potential value of the customer. A leading operator in Sri Lanka, for example, uses a recharge frequency model (RFM) to score and segment customers based on transactional value and profitability. The model takes information such as the subscriber ID, their total usage, total number of incoming minutes, their age and so forth and applies a learning algorithm based on a decision tree and logistic regression. The output action could be to allow the customer to churn; to promote new services and offers to increase loyalty and grow the customers’ spend or bundle of services; or they may reward their most valuable customers. Preventing churn uses a similar set of inputs to precision marketing decisions, and can be used to prevent churn at the end of a contract or period of credit. Clearly the time to intervene is not when the customer calls to ask for their porting authorization code (PAC), but rather it is better to automatically track the customers’ behavior in the three months prior to the end of the contract to see whether they have: made fewer calls and/or not exceed the cost of their basic bundle enquired directly about upgrading their device and/or package responded to certain offers searched for new offers, or made calls to a competitors’ customer service numbers. These are a few of the patterns that can be identified if the operator monitors customer data (pre-paid customers can merely drop off and the problem is more acute on account of the non-contractual nature of prepaid services). © Ovum. Unauthorized reproduction prohibited. 13
  • 14. Give greater management and control to customers This is the next step in the customer-operator relationship, where the operator allows customers to control and manage their own data, and where the operator provides transparency on how their data is used and shared. For example, operators could build trust by seeking a customer’s permission on how to engage with them (what is their preferred channel and how frequently do they want to be contacted), which may increase the amount of personal data that customers will provide. With the right security and privacy controls in place, operators (particularly those in mature markets and with certain demographic groups) can enhance their relationships with subscribers. This has been used to great effect by O2 in the UK for example. O2’s Priority Moments is an opt-in service that give customers priority access to O2 sponsored events. One aspect that operators do not seem to be aware of is that generally customers trust them with their data – certainly more than their OTT counterparts. Operators have a good opportunity to obtain more information and data about their customers, simply by asking them for it! Right-sizing the operators’ commercial response Dimension data packs to support offers to customers It is important that operators use the customer data and usage information to ensure that when a customer signs up to a new service, that they do indeed have all the components in place to obtain the service. For example, if the customer signs for new services and then tries to use it, only to find that their current plan doesn’t allow them to activate the service, or they don’t have a big enough data plan or the necessary speed available, the customer will be not only be frustrated and disappointed, but far less likely to try new services in the future. As soon as a customer tries to buy a new service, all the components should be highlighted that they either need to purchase or order to obtain the service. This can only be achieved by using analytics to correlate the customer profile with the desired services © Ovum. Unauthorized reproduction prohibited. 14
  • 15. Appendix This white paper was researched, authored and produced by Ovum in association with Mahindra Comviva, as part of a series of papers assessing the current state and future market direction of mobile broadband services for mobile operators. About Mahindra Comviva Mahindra Comviva is the global leader in providing mobility solutions. It is a subsidiary of Tech Mahindra and a part of the USD 16.7 billion Mahindra Group. With an extensive port-folio spanning mobile finance, content, infotainment, messaging and mobile data solutions, Mahindra Comviva enables service providers to enhance customer experience, rationalize costs and accelerate revenue growth. Its mobility solutions are deployed by 130 mobile service providers and financial institutions in 90 plus countries, transforming the lives of over a billion people across the world. For more information, please visit www.mahindracomviva.com. Ovum Consulting Ovum has an enviable and hard-earned reputation as a provider of telecoms consult-ing services. Our consulting customers tell us that, above all else, it is Ovum's industry knowledge and at tention to detail that puts us ahead of our competitors. This is directly related to the expertise of our consultants and analysts, and the project and research methodologies we use. We work across the globe with business leaders of telecoms operators, service providers and ICT vendors and with investment banks, governments and industry regulators. We hope that this analysis will help you make informed and imaginative business decisions. If you have further requirements, Ovum’s consulting team may be able to help you. For more information about Ovum’s consulting capabilities, please contact us directly at consulting@ovum.com. Disclaimer All Rights Reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior permission of the publisher, Ovum (an Informa business). The facts of this report are believed to be correct at the time of publication but cannot be guaranteed. Please note that the findings, conclusions, and recommendations that Ovum delivers will be based on information gathered in good faith from both primary and secondary sources, whose accuracy we are not always in a position to guarantee. As such Ovum can accept no liability whatever for actions taken based on any information that may subsequently prove to be incorrect.