Telecommunication industry has a vibrant role to play in today’s information age. In US alone, approximately 1.3 Trillion dollars has been spent for the growth of telecommunication industry in the year of 2014. It is expected to swell in the upcoming years due to the intense competition and rapid growth phase. The application of telecom analytics is manifold due to loads of data and is moving from batch processing to real-time mode. Gone are the days where analyst would just be seen as number crunchers generating all the statistical reports from time to time. Intelligence at fingertips within seconds, if not in minutes, is the fact that speaks for themselves.
Foremost telecom service providers in and around the World façade a lot of mutual challenges. Today, telecom service providers are under extreme stress. Customer churn has become a key concern for Communication Service Providers. Service providers lose Customer Acquisition Cost (CAC) as well as the revenue for a year or more when a customer leaves the network. Also, the lack of timely insight and delayed response time can translate into revenue nowhere to be found. To remain sustainable, telecom service providers need to hold on to the customers they have and find better ways to increase their share of each customer’s wallet – they need to improve their ability to detect and convert revenue enhancement opportunities.
To increase the accuracy of churn predictions, analysts are integrating predictive analytics into their data strategy. This lets them not only understand why customers leave, but allows them to identify customers who are on the verge of leaving, and respond with marketing tactics to change their behaviour. A very real challenge for the telecom analyst is how to increase yield from the current subscribers, or how to improve Average Revenue per User (ARPU). Cross-selling and up-selling analytic activities can now be supported by predictive analytics which in turn provides remarkably higher returns.
Clearly, the competition for customers among rival telecom suppliers is not about to fall off. Churn will continue to be a problem because the acquisition costs of converting new customers far outweigh the cost of maintaining current customers, as does keeping them at their current level of service. Telecom Analysts and telecom service provider’s major vision would be to solve the issues of real-time data analysis and delayed response time to attain Customer Satisfaction (CSAT). I believe the time for not knowing is over and it’s an exciting time to be you: As a telecom analyst.