Role of Analytics in Telecom Industry
The telecoms industry is one which not only sees a large customer base but a customer base whose needs and desires are constantly evolving and/or shifting. On top of this, telecom firms face cut-throat competition, making it a highly dynamic and challenging industry. In such a scenario, each decision taken becomes all the more crucial. It is therefore imperative for the firm to make decisions based on extensive data analytics to ensure the efficient and effective use of business resources. Although analytics can be instrumental in the telecom industry in many ways, some of the major applications include:
· Customer retention/improving customer loyalty:
With fierce competition between the numerous players in this industry, customer retention is essential. Telecommunications are now much more than making calls and analytical tools can help firms to identify cross-selling opportunities and make impactful decisions to retain the customer. Analytics can also help in identifying trends in customer behaviour to predict customer churn and apprise the decision-makers to take suitable action to prevent the same. When dealing with a large customer base, marketing across the board would be expensive and ineffective. Hence, analytics can help in better channelling marketing efforts, such as identifying target groups and/or regions to launch pilot projects, so that the firm has a better return on its marketing investment.
It is crucial for telecom operators to ensure that all their customers are able to use their products at all times. At the same time, firms need to be frugal when it comes to allocating resources to network because any unused capacity is a waste of resource. Analytics help in better monitoring traffic and in facilitating capacity planning decisions. Analytical tools leverage data collected through the day to day transactions and help in both short term optimization decisions and long term strategic decision making.
The traditional method of initiating something new based on gut feeling or intuition is outdated. With the use of predictive analytics in all their business departments - telecos can predict the approximate success rate of a new idea based on the past preferences of customers. This will, in turn, provide telecom operators with a great strategic advantage. Predictive analytics helps in targeting the right customer at the right time based on their past behaviour and choices. It also helps in boosting revenue by proper planning and reducing the operational costs in the long term. Lastly, staying advance always gives a competitive edge which is of utmost importance in this highly competitive telecom industry.
The branding of telecom operators on social media plays a crucial part in customer gain and retention. Data generated through social media can be interpreted into meaningful insights using social analytical tools. The customer sentiment analysis, customer experience and positioning of the company can be analyzed to make the customer experience richer and smoother. Also, data generated through such a platform are more diverse both geographically and demographically and hence helps in gaining insight into the real customer information.
We thus see how powerful analytical tools can act as a catalyst for business growth providing a layout for proper planning and optimization of resources. Not only the present, but also future trends, can be seen through analytics. Hence, such powerful tools should be leveraged now to gain a long term uplift in business profit.