Importance of Business Analytics in Telecommunication Industry
Companies in the telecommunication industry are facing conditions like never before and unlike those that exist in any other sector. If you are wondering why the reason is pretty simple. Consolidation is happening at a rapid pace, as companies unlock new opportunities and begin to expand. And, at the same time, convergence strategies are also taking place in order for the companies to survive as a one-stop shop offering everything from voice to Internet and data to multimedia services.
The Need for Business Analytics
- Operational Excellence
So, what is the solution for these shifting business models in the telecommunication sector? Enter business analytics to the rescue. Business Analytical tools make life easier by providing an all in one solution. Achieve a complete bird’s eye view of operations and activities across different fragments of the business. The day-to-day operational excellence of the organization can be undertaken with the help of analytics and this will add value to the overall business. It will provide a strong layout for proper planning and allocation of resources.
- Marketing Initiative
Next in line is the need to serve customers and market your products. How will you assess the success of your recent marketing campaign and its performance? Again here analytics will come to your aid and help with effective campaign management. You can then develop more effective and appealing campaigns to drive more sales. Whether you want to cross-sell, up-sell, increase customer wallet share, add new customers or retain them, you can devise multiple marketing campaigns with the help of business analytics.
- Survival of the Fittest
As the telecommunication industry experiences intensifying competition and rising churn rates, companies have no other choice but to employ analytics in order to boost their performance. By monitoring key performance indicators or KPIs like peak usage volumes, network activity patterns, the telecommunication service providers can optimize their infrastructure to meet up to their business goals.
- Maximize Positive Customer Experience
A customer is at the heart of any business and the telecommunication industry is not an exception to this fact. With business analytical tools, comes the power to assess customer service levels. Are they satisfied or do they need more help? Trends in activities like technical support calls, call center interactions, sentiment analysis, customer reviews, and ratings can be spotted with ease. Now, this only ensures that the end customer is receiving a positive experience and will stay loyal to the company without churning off.
- Customer Acquisitions and Retention
Just getting more customers does not do your job; you also need to make sure that you retain them for a long time. Especially in the telecom industry, it affects the profitability of the business if the customer churns before the company can earn back their investment incurred in acquiring that customer. Identify the most profitable customers and retain them. How is this possible? Your only savior is business analytics.
With data at your fingertips, you can predict customer churn and make proactive decisions to prevent it.
- Customer Segmentation
Market segmentation is an important premise to develop successful marketing strategies. With the help of business analytics and data mining, the entire customer base can be categorized on the basis of parameters like voice usage, recharge, data services usage, revenue, value-added services usage and more. Now, this makes your job easier to design specific campaigns to satisfy the specific target group.
For instance, customers who use high levels of national long distance calls or STD calls can be targeted with tailor-made STD tariff packs. Telecom sector enjoys a large customer base, but a customer base whose needs are constantly evolving. This is where analytics are needed to help you channelize your marketing efforts.
- Profitability Analysis
With the availability of data, telecoms can easily monitor the performance of their individual portfolios. They can measure key metrics like ROI for individual products or services offered by them. This is sure to help a great deal in performance analysis and service providers can easily decide which products are doing good and which are not.
- New Product Development
You cannot initiate a new product or service just based on your gut feeling. You need something lucrative to back up your new initiatives and again here analytics will help. With the use of predictive analytics, you can predict the success rate of a new scheme based on the past preferences of the customers.
In addition to this, analytics will also help you uncover new opportunities and devise new schemes accordingly. The best big data analytics programs and tools will help you assess the evolving trends and help you devise a new product that meets the current demand.
There is no doubt how business analytics help the telecommunication sector. Take charge of your organization and leverage analytical tools across all levels and fragments to improve your business performance. From service delivery to greater sales or revenue and enhanced customer loyalty to gaining a competitive edge and increasing the efficiency of core operations, the benefits of business analytics are just endless. Analyze your past, present, and future through business analytics.
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