Big Data: Mountain of Differentiation
Big Data has become the generic term for the massive amounts of data businesses have accumulated during the course of their operations. There are ongoing discussions on how useful it might be and how it can be used. By applying the right analytics software to the data, most believe it can lead to new efficiencies, improved business processes, lower costs, higher profits, improved customer experiences, services and loyalties.
Communication Service Providers (CSP) have an absolute mountain of Big Data within their domain that is clearly untapped – or at the very least under-utilized. Is this a missed opportunity for differentiation? Let’s take a closer look at their current business model and assess if there are new possibilities.
Mobile CSP’s revenue streams are based on service usage and their major costs are subscriber churn, device subsidiaries and keeping their networks current. To differentiate themselves from their competitors, they focus on devices, price plans and network. The problem:
- They all have the same or similar devices and price plans.
- They all claim the fastest 4G/LTE network.
Within their domains, they have available both real-time and “static” or near real-time data. A small subset of available real-time data includes:
- Currently active identity and device(s)
- Current location, presence, availability
- Active content
- Charging preferences, prepaid balance
- Minutes and data usage
A small subset of “static” or near real-time data includes:
- Real Name and Billing address
- Number of devices
- Web-sites accessed, searches made
- Friends and Family, Business associates
- Defined preferences
- Content and genre purchased and downloaded
For CSP’s that also offer wireline, broadband and video services, this list can grow to include number of devices in the home, devices active, channels watched, time of day, days of the week and many more data items.
Each service provider also has multiple third-party partners that augment their services. These partners are also going to have more information about subscribers relevant to what, how and when services and content are accessed and utilized.
With 10, 20 or even 100 million plus subscribers initiating a combined millions of transactions each day, all of which gets distilled into data records, that is a massive amount of data that can be used to establish insights and intelligence about subscribers and understand their preferences.
Identity and Master Data
All of the above data items are tied together by the mobile number/account number which acts as the common Identity or primary key of the subscriber. By using master data management techniques such as centralization, virtualization and federation, CSP’s can establish a single, universal view of the individual subscribers.
With ongoing advances in analytics software, CSP’s have at their finger-tips the means to truly understand how their services are used and by whom. They can also define, redefine and fine-tune market segments, demographics and buying characteristics. As a result, it doesn’t take much imagination to brainstorm a list of ideas for service providers to:
- Personalize the service experience
- Develop enhanced loyalty management programs
- Enable targeted advertising specific to the individual’s preferences
Are there opportunities for service providers to differentiate themselves beyond just price plans and devices? Absolutely. There is a mountain of Big Data available to make it happen. With just a subset of the available data, there is much more that a service provider can do to enhance the experience of their subscribers. The category of personalization alone can create a whole new set of ideas and innovation.
Corner Office Wisdom:
In order to think outside the box when it comes to finding new opportunities and enhancing your business, sometimes you just need to look inside the box.