Use Cases

One vendor in the marketplace that service providers have turned to for predictive analytics solutions is Razorsight, a cloud-based analytics business with more than 12 years of experience focused solely in the Telecommunications space. The company is helping its customers become Smart Operators, and it provided Pipeline with some use cases that demonstrate the power of intelligent acquisition.

Broadly, the success of Razorsight’s predictive analytics platform across MVNO and mobile operator customers is significant:

• 4x increase in probability or likelihood in a top-up;
• 23% Increase in data usage;
• 3x more minutes of use per subscriber; and
• 31% Increase in SMS utilization.

Virgin Mobile Latin America leverages Razorsight’s predictive analytics platform across all operations including Chile, Colombia and Mexico. Recently, Virgin Mobile embarked on a strategy to bolster its market leadership and improve customer loyalty and satisfaction. The company engaged Razorsight to proactively target new customers and develop a laser-focused marketing strategy. At the same time, the solution offered Virgin Mobile a centralized, consistent method for measuring and reporting KPIs on both a country-by-country and corporate basis. 

“Razorsight analytics allow management to benefit from real-time insights into our customers and key operations metrics to ensure continued delivery of world class experiences,” said Peter Macnee, Virgin Mobile CEO.

In the U.S., T-Mobile tapped Razorsight to automate and accelerate its executive reporting and increase visibility and insight into the performance of its operations (especially following the acquisition of MetroPCS). Most of all, T-Mobile needed to see results quickly. Razorsight integrated MetroPCS into its platform in just three months, delivering a single data repository and reporting platform. This enabled T-Mobile to realize millions in annual and recurring savings by optimizing its mobile backhaul rollout, creating personnel efficiencies, and accelerating time to market.

Competing with smarts

Service providers, whether cable, mobile, wireline or satellite, must become Smart Operators in order to compete and stand out from the crowd. Understanding which customer micro segments offer the most long-term value and least (or most manageable) risk is directly correlated with optimal growth. Likewise, arriving at these insights and acting on them automatically and rapidly is paramount.

In today’s competitive climate, it is not enough to simply stuff more advertisements in mailboxes. This is not to say that mailers are ineffective -- in certain instances they are very effective. But sending new customer offers to a current customer is a waste of resources. CSPs need to know ahead of time which customers are likely to stick around for the long haul, which incentives are the most compelling for each segment, what kind of impact a customer segment will have on support and operations, and what kind of “baggage” customers bring to the table. History has taught us that great managers and business leaders think and act differently than the rest – they take risks and do things differently than the “me too” herd mentality that permeates most organizations.  This is where the power of predictive analytics shines.