The key to success lies in the ability of telco providers to identify what consumers seek and mold their offerings into captivating products. And with data, this can be easily achieved through intensive sifting and mining of data. Personalized customer products are the need of the hour and data is the underlying enabler to this revolution.

1. Leveraging
Data into Actionable Insights
for Telcos

2. 01
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EXECUTIVE SUMMARY
Data in its various forms now forms
the underlying bond between
telecommunication providers,
partners and end users. And those
who have access to this data also
have access to the opportunity to
leverage this raw information into
valuable insights and positive
customer action.
The key to success lies in the ability
of telco providers to identify what
consumers seek and mold their
offerings into captivating products.
And with data, this can be easily
achieved through intensive sifting
and mining of data. Personalized
customer products are the need of
the hour and data is the underlying
enabler to this revolution.
THE KEY TO
SUCCESS LIES IN
THE ABILITY OF
TELCO PROVIDERS
TO IDENTIFY WHAT
CONSUMERS SEEK
AND MOLD THEIR
OFFERINGS INTO
CAPTIVATING
PRODUCTS.
But how can telco providers
decide which types of data are
relevant to their needs? With data
sources and types so fragmented
and unstructured how can we
justify the customer segments and
the various insights that are
derived from them as viable to
base customer strategy?

3. THE RATIONALE
BEHIND USING DATA
For telcos data is now easily
available like never before. Access
to market and customer level
analytics is greatly simplified and
can be acquired from multiple
sources. However, the way how this
wealth of data is used is still a point
of contention among the industry.
While decision makers and key
influencers all agree on the ubiquity
and the indispensability of data to
their marketing and customer
outreach strategy, it is a minority of
organizations that have actually
taken the plunge into integrating
data. Reasons for such
apprehensiveness cover anything
from lack of trained resources to
difficulty in integration at a systems
level. Yet data remains the most
viable of tools to base customer
strategy on; chiefly due to its
availability and malleability (from a
strategy perspective). Success is
underpinned by the ability to
transform a deluge of data into
actionable insights and the intense
market dynamics make it
unforgiving for those who don’t.
WHILE DECISION
MAKERS AND KEY
INFLUENCERS ALL
AGREE ON THE
UBIQUITY AND THE
INDISPENSABILITY
OF DATA TO THEIR
MARKETING AND
CUSTOMER
OUTREACH
STRATEGY, IT IS A
MINORITY OF
ORGANIZATIONS
THAT HAVE
ACTUALLY TAKEN
THE PLUNGE INTO
INTEGRATING
DATA.
02
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4. THE EVOLUTION OF
DATA IN THE TELECOM
INDUSTRY
The evolution of data is synonymous
with the evolution of the telecom
industry itself. Data acquisition finds
its roots in the days of wired
communications when telecom
providers had exercised exclusive
rights to their customers’
information which were acquired
through subscriptions. The advent of
wireless communications opened up
the ecosystem marginally with
mobile behavior and customer
wants and needs came into the
picture. But the evolution reached
new heights through the mass influx
of smartphones and internet
enabled devices. Telco providers
found themselves in the company of
new partners, burgeoning customer
demographics and an overall richer
quality of data that promised insights
like never before.
The current state of affairs however
sees this data as being severely
underutilized. The data being used
by telcos today is just the tip of the
iceberg and the bulk of customer
data (device and services related)
remain woefully neglected.
THE DATA BEING
USED BY TELCOS
TODAY IS JUST THE
TIP OF THE ICEBERG
AND THE BULK OF
CUSTOMER DATA
(DEVICE AND
SERVICES RELATED)
REMAIN WOEFULLY
NEGLECTED.
03
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We use
10% of our
total Brain
?

5. SO WHAT NEEDS
TO BE DONE?
Consolidating and harnessing this
vast trove of ‘owned’ data is the need
of the hour. Telcos can use this
internal data and create relevant
customer segments and profiles.
The next step however, requires
looking beyond self-generated data
and at complementary data sources.
Tapping into such multiple data
sources can grant access to a wealth
of market and customer information
and can help fine tune customer
segments. Such data that telcos
need to gather are described below.
CONSOLIDATING
AND HARNESSING
THIS VAST TROVE
OF ‘OWNED’ DATA
IS THE NEED OF
THE HOUR.
04
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● FIRST PARTY DATA
This is data that is directly
generated as a result of interaction
with customers,
● Existing voice and data plans
● Apps downloaded
● SMS usage patterns
● Support and Contact Center
history
● Payment Track record
● Customer Location
● Site and Community behavior
This first party data is primarily internal but can be distributed across various
systems and forms within the telcos internal environment. The challenge here would
be to collate and consolidate such potentially fragmented data into a usable form.

6. ● SECOND PARTY DATA
Telcos no longer operate in an
isolated environment. They work
in cooperation with various
partners such as retailers, device
manufacturers and channel
partners to name a few. Data
from such partners forms
‘Second Party Data’. Simply put,
this is defined as data that can be
obtained from such partners and
offer a more expanded insight
into customers that are mutual
to both entities. Examples of
such data include
● Customers’ device preferences
● Point of Sale information
● Offer uptake
In some ways Second Party Data
can also be considered as
partners’ First Party Data. Hence
telcos should foresee challenges
in not just data acquisition and
storage but also internal
integration with their own tools
and processes.

7. ● THIRD PARTY DATA
Third Party Data is that which is
publically available or that which
can be purchased from
organizations that sell consumer
and market data. Examples are
● Demographics Data
● Market and Market Share Data
● Consumer Purchase Power
Information
Such data sets tend to extend
into millions of records. Hence
such data can contain a wealth of
information and simultaneously
offer huge challenges in the form
of manipulation and insights
extraction.

8. 05
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FROM DATA TO
ACTIONABLE INSIGHT
From data the challenge now
extends to extracting relevant
information and transforming it into
actionable intelligence that can help
telcos standout in the competitive
marketplace. Described below is a
sequence of activities that drive the
same.
● DATA CONSOLIDATION
At this stage emphasis needs
to be on collating the various first,
second and third party data
sources and inventorizing them
for segmentation purposes. Telcos
must ensure that this step is
completed in an efficient manner
as sourcing and integrating the
multi-source, multi-format data
can be a challenge.
...EXTRACTING
RELEVANT
INFORMATION AND
TRANSFORMING IT
INTO ACTIONABLE
INTELLIGENCE CAN
HELP TELCOS
STANDOUT IN THE
COMPETITIVE
MARKETPLACE.
● DATA MODELS
The next stage involves the
development of customer data
models by using environmental,
online behavior, offline,
temporal, and referrer variables
on first party data.
● SEGMENTS
With data models constructed,
the next stage would be the
development of customer
segments and profiles based on
the proprietary first-party data.

9. ● FINE TUNING
With rudimentary segments
constructed, the segments need
to be fine-tuned by overlaying
second and third-party data.
Doing so helps to identify
additional demographic,
techno-graphic and life-event
triggers that expand the
understanding of customers
beyond proprietary data sets.
● INSIGHTS
A key consequence of customer
clarity is the insights. Learnings
from the prepped data set give
rise to actionable
recommendations that can help
optimize customer contact
programs.

10. 06
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BENEFITS:
The structured and data driven
approach to customer contact
provides multiple benefits a few of
which are elaborated below.
● The level of granularity in
segmentation activity is increased
significantly. This allows telco
providers to create tailored and
innovate products and services
that can better resonate with their
customers
● Data driven segmentation also
enables a greater degree of
transparency on pricing. Telco
providers can offer differentiated
pricing based on specific segment
attributes and maximize customer
value
● Data helps in optimization of the
overall customer journey. At-risk
customers and root causes of
customer churn can be identified
with a high degree of accuracy and
can mitigate attrition and
dissonance levels significantly.
TELCO PROVIDERS
CAN OFFER
DIFFERENTIATED
PRICING BASED ON
SPECIFIC SEGMENT
ATTRIBUTES AND
MAXIMIZE
CUSTOMER VALUE

11. 07
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CONCLUDING
THOUGHTS
For telcos, data must extend beyond
being just a buzzword and must exist
as a part of their overall strategy. The
benefits of data in customer strategy
are well documented but the
motivation must come from within
companies to consider data as a
worthy ally in the quest to establish
themselves at the forefront of the
customers’ decisions.

12. ABOUT XERAGO08
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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.
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