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Telecom Analytics: The path to customer loyalty through analytics

Wireless carriers are concerned about increasing customer loyalty – and they should be – according to a new study released by WDS, a Xerox-owned company that provides customer experience management solutions to the wireless industry. The study of U.S. mobile phone users reveals that 36% of U.S. customers are considering leaving their mobile carrier in the next 12 months. Only 13% of customers show the level of loyalty that would prevent them from leaving for other competitive offers or because of service disruptions.

The WDS study also suggests that the number of customers at risk of switching could be underestimated by wireless carriers, since many existing measures of loyalty, such as customer satisfaction and net promoter scores, often deliver potentially misleading results.

The results of this study led WDS to analyze how wireless operators are using their customer relationship and experience solutions, and how they are (or aren’t) analyzing their data to get valuable information about customer behavior and loyalty.

Vivo, the Brazilian unit of Telefónica, has implemented a structured information environment. Leandro Andrade, director of business innovation, told an audience at this week’s TM Forum Latin America Summit in São Paulo, that in a very competitive market it is a challenge to make great use of information.

“We moved from decentralized data marts to an integrated data warehouse environment. We not only implemented an [enterprise data warehouse] EDW but also loaded the most relevant information for decision making,” Andrade said. Since then, Vivo has been able to support several areas based on analytical solutions.

Also at the summit, Tony Kalcina, TM Forum ambassador and Clarity founder, noted that customer experience management analytics drive network quality.

“A 5% increase in customer retention results in a 25% to 100% increase in profitability,” he said.

Kalcina pointed out that customer experience depends on “end-to-end” performance, consisting of customer experience management monitoring, analytics, diagnostics and recommended actions.

Telecommunications Services of Trinidad and Tobago has chosen to integrate its BSS/OSS processes and systems. At the TM Forum Latin America Summit, Hayden Mora, head of program management at TSTT, explained that fixed and mobile lines had separate systems of capture, management and billing, which resulted in the inability to cross-sell and up-sell. To transform service fulfillment and assurance, TSTT partnered with ConceptWave and Telcordia, along with IBM and Oracle.

At the summit, Sandro Simas, director of systems at the Vivendi-owned Brazilian service communication provider GVT, said the company has structured its back office to center on customers.

As such, business process management, enterprise service bus and applications were built to focus on customers. GVT used Oracle’s Siebel CRM and TOA mobile workforce management software.

What’s happening in the market:

The telecom analytics series provides weekly insights on trends, new products and other topics that touch on the advantages and  monetization opportunities of analytics tools for telecom operators, including big databusiness intelligencecustomer experience analysis and management, business analytics  and network analytics.

ABOUT AUTHOR

Roberta Prescott
Roberta Prescott
Editor, Americasrprescott@rcrwireless.com Roberta Prescott is responsible for Latin America reporting news and analysis, interviewing key stakeholders. Roberta has worked as an IT and telecommunication journalist since March 2005, when she started as a reporter with InformationWeek Brasil magazine and its website IT Web. In July 2006, Prescott was promoted to be the editor-in-chief, and, beyond the magazine and website, was in charge for all ICT products, such as IT events and CIO awards. In mid-2010, she was promoted to the position of executive editor, with responsibility for all the editorial products and content of IT Mídia. Prescott has worked as a journalist since 1998 and has three journalism prizes. In 2009, she won, along with InformationWeek Brasil team, the press prize 11th Prêmio Imprensa Embratel. In 2008, she won the 7th Unisys Journalism Prize and in 2006 was the editor-in-chief when InformationWeek Brasil won the 20th media award Prêmio Veículos de Comunicação. She graduated in Journalism by the Pontifícia Universidade Católica de Campinas, has done specialization in journalism at the Universidad de Navarra (Spain, 2003) and Master in Journalism at IICS – Universidad de Navarra (Brazil, 2010) and MBA – Executive Education at the Getulio Vargas Foundation.