Decisioning for Telecom Customer Intimacy. Experian Telecom Analytics

Transcription

1 Decisioning for Telecom Customer Intimacy Experian Telecom Analytics

2 Turning disruption into opportunity The traditional telecom business model is being disrupted by a variety of pressures. From heightened competition and budget constraints to new customer behaviours and exponential technological advances, the landscape is continually shifting. Increasing revenue and retaining customer loyalty have never been so challenging. Market challenges From the penetration of giant foreign multinationals and the move of privatised national carriers from fixed line to mobile, to the arrival of ultra cheap no frills operators, the telecom market is bursting at the seams. Retaining share is difficult enough; growing your market seems a distant memory. Given the maturity of the telecom space, with 100% penetration common, customer retention and customer intimacy is now more crucial than ever. Squeezed margins Volatile economic conditions and the consequent squeeze on wallets are driving customer behaviour to increasing price sensitivity. Reduced margins mean managing the cost of fraud, credit losses, serving low-value customers and meeting compliance requirements are increasingly critical. Added to which is the challenge of allocating investment to new technology and devices when budgets are already under strain. Befriending big data The extensive growth of customer behavioural data can seem like yet another pressure to be withstood. Analysing big data can lead to a potentially confusing and unhelpful array of strategic possibilities. On the other hand, with the right expertise, it can turn your challenges into opportunities. At Experian, advances in data analytics offer a new approach to securing your profitability. Growing data usage delivers rich information about customers and can be used for developing predictive analytical technologies that anticipate customer segment future behaviours and actions The potential insights that can be derived from customer information has created an opportunity for telecoms to implement and optimise new strategies Smart strategies for using customer information are being used to reduce the number of unprofitable customers and help retain the most valuable ones Reducing debt exposure and churn A leading European telecom operator needed to differentiate between profitable lifetime customers and high-risk ones who threatened to increase debt exposure. Experian Telecom Analytics helped to deliver: 25% reduction in call barring No increase in bad debt No loss in customer spend Predicted increase in customer satisfaction levels Significant reduction in operational costs

3 Driving profitability through analytics In such a cluttered and fast-evolving business environment, steering a path to profitability requires a sharper focus on better processes and intelligent decisioning. Experian Telecom Analytics can help you achieve that focus. We enable you to implement strategies that drive profitability over the whole customer lifecycle. Smarter acquisition and retention We can show you how to use your customer data to develop new business models that support sustainable growth. Our advanced analytics ensure you maintain your existing revenue streams whilst also reducing churn. With Experian, you can: Gain insights for more profitable customer interaction and communication management to improve customer intimacy using proven analytical technologies and fraud detection Drive strategy design and retain your most profitable customers by aligning your product offerings with enhanced customer segmentation using simulation, challenger testing and reporting Leverage up-sell and cross-sell opportunities to extend profitability by establishing more complete customer profiles that open the door to more relevant customer communications 60% Analytics Drives Business Value 60% of practitioners are using analytics to generate a better customer experience, with more than half (52%) seeing strong outcomes as a result. Source: Accenture, Analytics in Action: Breakthroughs and Barriers on the Journey to ROI, 2013 Cutting your costs to serve From fraud management to prospecting, acquisition and customer management, we enable you to enhance your key business processes to both reduce your exposure to risk and improve your cost optimisation. With Experian, you can: Consistently identify exposure to risk from early detection of delinquent accounts by establishing clear rules and actions Make better business decisions with increased reporting clarity that raises the visibility of both problematic and successful processes Implement better processes for collections, marketing campaigns and acquisition by focusing on the actions that achieve optimum results and improve customer intimacy by streamlining attention on the right customers Achieving strategic clarity Today s data growth wave presents a stark choice: exploit it to succeed, or fail. Working with Experian enables you to see the profitable possibilities available to your business, and define the strategy you need to achieve them. We can help you: Harness the power of data insight to drive your commercial strategy and increase your competitive advantage Increase the loyalty of your most profitable customers and create new up-sell and cross-sell opportunities Cost-effectively allow more low-value and high-risk customers to churn Use data-driven decisions to evaluate new business models, exploit the potential of new channels to market and minimise risk from non-validated decisions

4 Extracting more value from the customer lifecycle Optimising decisions across the customer lifecycle to enhance business performance, Experian Telecom Analytics combines best-in-class predictive analytics techniques and tools with consultancy services. By integrating existing subscriber data with external data assets, we analyse all stages of the customer lifecycle. This intelligence is then converted into rich customer insights with actionable models that enable more profitable decisioning. Unlocking the gateway to growth Enabling you to maximise opportunities for revenue and efficiency, we provide a broad range of capabilities across all stages of the customer lifecycle to improve customer intimacy. Our consultants help you target the critical areas in your strategy and map them to solutions that deliver real results. Throughout the customer lifecycle, fraud management is key to maximising profitability. From prospecting through to acquisition and customer management to collections, a robust and proven approach to fraud management is essential to control potentially critical losses. With fraud prediction analytics, you can reduce fraud losses, reduce your operational costs and maximise positive customer experiences in order to generate new revenue. Focused on delivering real business benefits, our consultants and analysts use their extensive telecom experience to equip you with fraud management solutions that integrate with your current systems. By continually improving our analytics tools, we ensure you always have best-in-class technology supporting your profitability. Stage-by-stage benefits Our advanced analytics and powerful tools for combating fraud and increasing customer intimacy deliver value at every stage of the customer lifecycle. Some of the benefits you can expect with Experian Telecom Analytics: Collections Customer Management Data Fraud Management Prospecting Acquisitions Prospecting Penetrate new target markets Improve response rates Increase application volume Acquisitions Improve operational efficiency Review approval rates Increase activation and take up rates Maximise client share of wallet Reduce credit risk Reduce fraud risk Minimise attrition Customer Management Improve customer experience Improve retention and revenue Reduce credit risk Reduce fraud risk Cross-sell and up-sell Collections Reduce charge-offs Improve operational efficiencies Increase recoveries Maintain customer experience Fraud Management Limit fraud losses Reduce operational costs Maximize a positive customer experience

5 Prospecting Grow your valuable customer base in existing markets using enhanced customer insights Develop revenue streams from pre-paid customers by identifying those most likely to convert to post pay and by defining treatment strategies for encouraging long-term loyalty from this customer segment Acquisition Control risk up front and make appropriate offers to reduce costs helping you make the right decisions when minimal applicant information is available Utilise risk selection models based on expected lifetime value of customers at the point of application Identify the fraud propensity of new customers at the point of application Identify customers who have no intention of paying at the point of application Customer management Manage and distil the volume of customer information to derive the next best action Identify those customers who are unlikely to pay in a given timeframe Identify those customers who have a propensity to commit bust out fraud Identify those customers that are likely to churn in time to deploy retention strategies Enhance your revenue from existing customers by identifying those that are likely to respond to cross-sell and up-sell offers Collections Separate late-paying profitable customers from high-risk, loss-making customers to help constrain or eradicate losses earlier in the customer lifecycle Identify those customers currently paying 1 2 months late who have a high probability of default Identify the likely recovery value of your late paying customers and the total portfolio value for on-selling to debt collection agencies, helping you to optimise debt outsourcing strategies Five steps to where you want to be Informed by our deep and extensive experience across the sector, Experian Telecom Analytics comprises five phases: Assess Design Develop Implement Monitor & Improve

6 1. Assess the business challenge Our consultancy team works with you to analyse your business processes and the rules you apply to decisioning throughout your customers lifecycles. We evaluate your processes and identify the techniques for achieving better results. 2. Design the business solution We recommend how you can take advantage of advanced analytics to deliver on your business requirements. Our recommendations not only deliver predicted results, but also ensure that these results are consistently monitored and maintained. By leveraging your internal data, any external data, and our tools and analytics reporting, we identify new ways to improve your decisioning. We advise on adjusting rule sets to develop KPIs so that you can benchmark performance and enhance your business returns. To ensure validity and identify ways to extract better segmentation and decisioning information, we audit your data. We also help you to look at future requirements for your solution to safeguard future growth with minimal disruption or additional expense. 3. Develop predictive models We develop models to meet the challenges identified in the assessment and design phases. We focus on how best to integrate change within your existing capabilities and infrastructure constraints. Our team identify the highest strength predictive variables and develop predictive models, ensuring statistical and business alignment. We also deliver the calibration, validation and documentation required for implementation. 4. Implement the solution Our approach to integrating the predictive models into your infrastructure and software is designed to optimise their performance and deliver quantifiable benefits back to your business. Full documentation is included to ensure smooth software implementation. For clients requiring additional application infrastructure to supplement the current legacy environment, Experian can advise on suitable software solutions. 5. Monitor and improve the value to your business Our view of deployment is not limited to delivery. We commit to continual partnership and consultation, supporting the evolving process of implementing and monitoring the solution you need. We demonstrate the solution s improved metrics that address the problems identified in the initial assessment. Subsequently, we provide the resources and monitoring tools to demonstrate continued value to your business. Our consultants can advise you on additional ways to leverage your model and make any modifications that may be required to meet future business requirements. We provide monitoring services for the models you use to ensure they continue to perform as expected and strategy monitoring to ensure your models remain aligned with business objectives. If the monitoring highlights any issues, we review the models and strategies to fine tune performance.

7 Better analytics. Better decisioning. Better value. Combining international experience with local understanding, we have worked with telecoms globally across all aspects of their business. Our collaborative approach with our customers has enabled us to utlise a 360 perspective to provide solutions that deliver tangible operational value to the business and improve customer intimacy. As a trusted enterprise partner delivering proven models, we continuously develop and enhance our models. From the key strategic objectives of increasing revenue, decreasing costs and reducing churn to tactical implementation across a range of infrastructures, we understand your sector, your challenges and your way forward. Steering strategic sales success By equipping you with deeper insights into customer behaviour and risk profiles, we enable you to deploy the optimum strategies and processes for cross-selling, up-selling and targeted offerings to existing customers. This delivers the ability to design strategies for improving retention and customer satisfaction, and identifying your best prospects, whilst maintaining margins and growing the value of your most profitable customers. We help you harness and focus the power of customer intimacy. With Experian, you can: Utilise market leading analytics to identify and develop real competitive advantage Implement sophisticated customer profiling and data analysis at every stage of the customer lifecycle Work smarter by focusing on driving business instead of reacting to unforeseen problems Use rich information to drive future strategies Manage risk and control costs Streamlining processes, we help you reduce exposure to financial risk and gain on cost optimisation levels. Our expertise helps you: Reduce process complexity for better efficiency and improved profitability Develop a future-proofed model to facilitate adapting to changing market requirements whilst limiting additional investment costs Access better management data for insights into cost-saving measures and early identification of potential fraud Combating online fraud When one of Europe s leading telecom providers launched online direct sales, fraudsters immediately committed identity theft to access services and the latest handsets. Experian Telecom Analytics helped to deliver: 88% reduction in online fraud Reduced fraud losses and write-offs Increased speed of application processing and reduced costs for manual fraud detection

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