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The Disruptive Power of Business Intelligence


O2 Ireland uses Cognos business intelligence (BI) tools and a Teradata data warehouse to analyse customer behavior.

Campaign Management: Instead of a crystal ball, operators need actionable intelligence to create and execute effective, properly targeted adverting campaigns. BI provides this data, and can guide efforts such as pilot studies that test price sensitivity for specific services in specific markets. BI also can correlate events with actions, such as the revenue impact of messaging campaigns related to a customer account threshold. Ultimately BI can deliver event prediction so that operators can know the impact of potential business decisions before they are implemented. This offers tremendous value and competitive advantage. For example, sometimes it makes sense to compete with a rival over a specific price point or service package, but sometimes keeping up with a prevailing trend doesn't make business sense. Knowing the answer ahead of time is the kind of intelligence BI provides. 

Web Insights: Website behavior analysis uncovers a treasure trove of user information, including time spent on specific offers, content effectiveness, navigation patterns, e-mail marketing performance, and customer satisfaction. A BI solution that incorporates web analytics can uncover many areas of opportunity for a CSP, as well as guide the design of web-based assets. Further, by incorporating geocoding from IP addresses, location specific patterns can be revealed. Perhaps a competitor is experience network issues in a particular area, driving customers in that region to the web in search for an alternative. Exposing these geographic clusters of opportunity is very valuable. 

Network Optimization: Not all network nodes were created equal. Well, maybe they are when they leave the Ericsson factory, but the fact is the some nodes carry traffic for the high-value customers, while others shuttle traffic from roaming partners or wholesale customers. BI helps MNOs deploy capacity and coverage in the locations that have the greatest financial impact, and can correlate network resources with marketing incentives. This has an impact on CEM, and enables the MNO to pair network planning efforts with predicted subscriber growth. 


BI in action

Telefonica, like all operators, wants to keep churn to a minimum. Recently, the company wanted to know whether it should try to stop all customers leaving, or are some not worth the effort? For O2 Ireland, part of Telefonica Europe, the answer came through analytics. A proportion of customers who buy a prepaid SIM card might only use it for a business trip and leave the country in a few days, muses Peter McKenna, head of business intelligence at O2 Ireland.

“Given their array of behaviors, it doesn’t make sense to invest in all customers in the same way. We want to invest in the customers we can influence and the customers who are really engaging with us,” he says.

An analysis of the use of prepaid SIM cards revealed where it would be best to target marketing efforts. “We have been able to identify the 65% of the customer base who really have a relationship with O2, and make sure we put all our investment in those guys," says McKenna.


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