Learn about the 3rd generation of Telco communication

Monday November 16,2015

Mo

Mo Firouzabadian Senior Vice President

Above The Line and Batch Below The Line campaigns with macro segmentation have lost their traction with customers expecting personalized communications in a timely manner with recognition of their loyalty to the brand. This means campaigns have ever decreasing response rates, and offers need to be linked with ever increasing discounts to capture customer’s attention. The mass targeting of customers leads to a huge amount of wastage and high levels of revenue cannibalisation with other offers.

Telecom operators are now entering the third age of the relationship with their customers. In the first era operators were focused on acquisition, in the second era Telco’s started to work on development and retention.We are now at the edge of a new revolution where customers must be considered as individuals, accustomed to light speed personalized communication. Ignoring this new reality leads to a disastrous misalignment between the Telco communication and the customers’ expectations.

Prepaid subscribers in particular interact heavily with their operator(s), recharging their account, purchasing bundles, changing rate plans, and checking their balance. So creating a journey corresponding to each and every one of these customers, and more importantly, convincing them to get on board this journey is the real challenge the operators are now facing.

In the era of hyper competition between operators, the old ARPU and tenure KPIs used in the past are no longer enough to characterize the relationship with the customers. New indicators such as micro-usage patterns and NPS are now widely used and complete the operators’ dashboard in his struggle for success.

Operators can fear how complex it looks like to go this way, or they can embrace the challenge of meeting their customers’ expectations!

At Lumata we love these kind of challenges, and we have used all our experience in creating customer journeys for operators of all size and in all types of markets around the world to answer these challenges.

One of the stories we like to tell is about one of our customers in a highly competitive market in Africa.

When we started talking, they were facing several big challenges, namely:

  • improve customer loyalty,
  • predict churners,
  • maintain their ARPU
  • and preserve their leadership on their market.

These are type of challenges most operators face and using the standard recipes would only mean massive value destruction a race to the bottom on price without a real differentiator.

The only way to differentiate from the competition is to take a step ahead and go beyond the mass communication model, and start understanding the customers’ needs, anticipate on them and interact with them in a one to one way kind of communication. Knowing each customer at the individual level - which was not feasible a few years ago - has now been made possible thanks to big data and the analytical algorithms we can be run on top of these data to know and understand each and every customer. This gives us the capability to create personalized customer journeys and that are relevant so customers get on board.

Thanks to these new tools, running successful micro segmented campaigns just consists in a few steps:

  • First, identify clusters of customers depending on their profile, usage behaviours and consumption habits.
  • This enables to create a map of the customers and helps for the second step which is to create a set of offers to propose to the customers based on the marketing’s objectives.
  • And eventually the third and last step is to create the relationship between these offers and the customers based on their cluster and their personal specificities.

Going through this process 150+ micro segments have been created, and each of them has been associated a customer journey with sets of offers corresponding to the current status and history of the customers. The nice part of it is that thanks to the scalability of our platform, all these rules have been configured in less than two weeks and are now executed automatically and in real time.

Only in this way can operators gain sustainable market share without destroying value in the market, working on the customer experience against competitors struggling to retain their customers the old ways!

Visit our Africa Com Microsite to read more and to schedule a meeting with our product experts-> http://www.lumata.com/africacom/ 

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