Luiz Rodolfo M. Pires

SAS Senior Consultant

Telecom Industry Specialist

How to Gain Competitive

Advantage with Advanced

Analytics in Telco Market

Apr 2015

Communications TRENDS

• Data is key revenue growth driver – steady voice decline

• Missing opportunity to monetize data tsunami

Reduce growth in traffic

Reduce network costs and improve efficiency

Increase revenues via new pricing models

• Churn continues

• Global networks reaching their limits – investments needed,

prioritization

• Infrastructure deals between CSPs

Data Traffic Challenges

Data Yields not commensurate

with the network investments

2009 2013Data Revenue

Revenue and Data Traffic Indexed to 100

• Customers using a larger portion of their data buckets

• Also lower yields on added data buckets

Data traffic growth significantly outpacing revenue growth

Approaches to improve data yields, in conjunction with LTE deployments

Content Providers

• 3rd party pays (800 data

services)

• Location/ Commerce Services

• QoS premium

• Revenue sharing models

– advertising/ contextual

contentSubscribers

• Tiered pricing plans

• Shared Device Plans

• BYOD Offers

• Dynamic offers

• Spend caps

• Off peak pricing

Network Operations

• Optimize network

efficiency

• Wifi/ 3G offloading

• Network Throttling

• Application Tiering

• Video rate limiting

• Pacing

Granularity required to:

• Deliver/ monitor and control unique experiences

• Pricing/ offer management

• Monitoring and delivering against targeted QoS

Carriers - Ubiquitous Broadband Coverage:

Increasing speeds & connectivity – wireless, wireline

122

38

183

57

Smartphones Tablets/ Modems

2011 2012 2011 2012

50%

50%

Rapid smart-device adoption

• 62% mobile market penetrated

• Smartphones accounted for 85-

92% of postpaid quarterly phone

sales

• Additionally, 70% home

broadband penetrated

Exploding wireless traffic

Sources: CTIA, The wireless association semi-annual survey, October 11, 2012,

http://www.ctia.org/media/press/body.cfm/prid/22

Video First! Plans

C op yr i g h t © 2012 , SAS Ins t i t u te Inc . A l l r i g h ts r eser v ed .

Leveraging Advanced analytics to improve functional efficiencies

as well as cross-functional impacts…

Core Business Areas

NETWORK & OPERATIONS

Capacity Planning & Deployment

Network Optimization

Service Assurance/ SQI Analytics

Call Center Analytics (force,

volume planning)

Capacity Planning & Optimization

Field Operations

CUSTOMER MGMT.

Acquire/ Upsell

Detect Churn earlier

Social Network Impacts

Promoter Insights

Optimize Offers and

Marketing Campaigns

Audience Intelligence

MARKETING MGMT.

Pricing Modeling

Revenue Assurance

Credit Risk

Demand Forecasting

Fraud Prevention

Intelligent Store

Clustering

DATA MONETIZATION

Intelligent Messaging

Mobile Commerce

Location Based Offers

Enrich Loyalty Card

Programs

Real Time

IMPROVE existing

processes

EXPLORE new

areasSupporting Functions

HUMAN RESOURCES

•Workforce Analytics

COLLECTIONS/ FRAUD

& ASSURANCE

•Collections Analytics

•Customer Risk

Assessment

•Fraud Assessment

FINANCE & TREASURY

•Profitability Management

(Product & Segment)

•Risk Management

•Pension/ Investment Portfolio

Management

SUPPLY CHAIN

• Forecast/ Demand planning for handsets/ data cards and other inventory

• CSP Market Situation & Role of Analytics

‒ Churn Management: leveraging unstructured & upstream churn detection

‒ Care/ Operations leveraging unstructured analytics

‒ Network Analytics

‒ Location Analytics

‒ Data Monetization

• Integration between SAS and esri

• CSP Market Situation & Role of Analytics

‒ Churn Management: leveraging unstructured & upstream churn detection

C op yr i g h t © 2012 , SAS Ins t i t u te Inc . A l l r i g h ts r eser v ed .

Adding new sources/categories to improve customer management

CRM CDR/ IPDRsHandset &

Network

Clarify

(Contact

Centers)

Competitive

info.Web (.com)

Bundled billing

infoSocial Media

• Customer (CRU/ IRU/

Bus Owners,

Household, etc.)

• Credit score

• Sales channel

• Subscription date

• Contract Expiration

date (for all lines)

• Upgrade eligibility

date

• Port Date

• Billing & Payment

activities [Rate Plan

data incl upgrade,

discount history]

• # lines

• Life events

• SOC data

• Dispute data

• Customer survey

data*

Calls/ SMS trends

• To & From

Number

• Date & Time

• Call Duration

• Drop calls

• Text patterns

• Usage trends

Data usage

• IP Address

• Sites visited

• Apps used

• Up/ Down Speeds

• Etc.

• Handset Make

• Handset Model

• Handset

Technology

• Operating

System

• IMSI

• IMEI

• Lat/ Long

• Geo location

• SGSN/ GGSN

• Cell Technology

• Calls

• Problem code

hierarchy

• Resolution code

• CSR

• Workgroup

• Avg call handle

time

• CSR Notes*

The data category

above is a proxy

for “Interaction

management, i.e.

all channel

interaction (e.g.

stores, contact

centers, etc.)

• Competitive

promotions

by channel/

geography

• Visitor ID

• Subscriber ID

• Visit recency

• Session count

• Session avg

• Engagement

level

• Session affiliate

• Offer bundles

(video – all

services, HSI,

voice, etc.)

• Promotion

• Support

• Twitter

• Facebook

• Other sites

Legend:

• Orange font: Potential new data sources to mash on these customers to understand churn

prediction

* Unstructured (text fields)

The data categories to analyze below is organized by data sources (groups)

C op yr i g h t © 2012 , SAS Ins t i t u te Inc . A l l r i g h ts r eser v ed .

Website Visits

Moving Churn Detection “Upstream”

1

Agenda

• CSP Market Situation & Role of Analytics

‒ Care/ Operations leveraging unstructured analytics

Case Description

1Field Notes Text:

Detect emerging topic, with or without prior knowledge of topic

2

Call Center Notes:

Summarize what customers are talking about bases on taxonomy

Identify emerging topics over time

3

Online Data (social media and help documents):

Extract social media and summarize key issues and influential users

Index help documents for enhanced search and relevance

4

Surveys:

Leverage survey response and associated demographics to predict ratings and net

promoter scores

Innovation Leveraging Text Analytics2

Chat Analysis SENTIMENT & TONAL ANALYTICS

2

Operationalizing the Insight

• Distinguish chats that are service-related vs ad-hoc questions and quantify the

value

• Enhance understanding of conversion impact and serve as data input for

modeling efforts (campaign response models, forecasting, etc.

• Consistent reporting leveraging an intuitive/ relevant taxonomy

(chat categories and subcategories)

• Forecast topics and proactively generate alerts highlighting issues

C op yr i g h t © 2012 , SAS Ins t i t u te Inc . A l l r i g h ts r eser v ed .

Opportunities for Early Discovery

• Monitor Trouble ticket Topics over time

2

Internet Security Certificate topic disappears in this timeframe

High volume topics:• Internet Services Down

• Internet Slow Connection

• Return Modem

• Wireless Network

Agenda

• CSP Market Situation & Role of Analytics

‒ Network Analytics

Analytics Role APPLYING ANALYTICS TO 3 KEY AREAS OF NETWORK MANAGEMENT

Improve

Network

Planning/

Efficiency

Service

Management:

Focus on QoE

Reduce Data

loss/ non-

billed revenue

I II

III

C op yr i g h t © 2012 , SAS Ins t i t u te Inc . A l l r i g h ts r eser v ed .

Network Planning/ Efficiency• Analytics Enabled Data Service Planning

3 months 9 months

Network Traffic & Saturation probability Traffic Trend By Application

Handset capabilities (2G,3G, 4G) with underlying assets

“63% of 3G handsets got only 2G network service”

Facebook37%

YouTube11%HTTP

10%

BitTorrent9%

Mail4%

Video3%eDonkey

3%

Other3%

Apple2%

skype2%

WhatsApp1%

Apple OS1%

Music1%

Windows Update

1%

Gtalk1%

Other13%

Agenda

• CSP Market Situation & Role of Analytics

‒ Data Monetization

Data Monetization (Insights to LBS Services)

Data volume

High Low

HighLow

Raw Data LBS ServicesInsightsProcessed

DataPresentation

• Annonymized

• DSP like model

Data value

Serv

ices

Clie

nts

(SA

MP

LE

)

• Aggregated

• Data Storage/

Management

• Data Mining/

Science

• Analytics/ Predictive

modeling

• Insight in

intelligible formats

• BI/ Performance

Mgmt. Software

• Interaction with

consumers (offers,

loyalty)

• APIs – access

platform & data

• Connected Lifestyle

Dynamic Insights

Initiatives AT Mobile operators & Others

Communications/ Cable/ Others

• Address 1:1 marketing through mobile devices and measurement for markets

• Use SAS to mash VZ data, Experian, BlueKai (demographics) and AirSage,

NewField (location) for DMA level insights

• Success with NFL

Customer Insights

Platform

• Testing 6 use cases with pilot customers

• Leveraging location information & Prism (Neilson) segmentation data

• Re-engaging with SAS

• SAS UK, largest IT/ Operations partner --- chose SAS for integrated stack

• Success with location based loyalty, offers/ coupons

• Very interest lessons on data management (privacy), location/ geo fencing, real-

time analytics & message delivery (xMS channel)

• Founded by 3 US wireless carriers, AT&T, T-Mobile & Verizon

• Started with NFC based payment service

• Early signs to work with SAS for their mCommerce/ mAdvertising platform

Customer Insights Platform

C op yr i g h t © 2012 , SAS Ins t i t u te Inc . A l l r i g h ts r eser v ed .

C op yr i g h t © 2012 , SAS Ins t i t u te Inc . A l l r i g h ts r eser v ed .

Geofence tripped; offers and messages sent in real-time. Location and context considered in real-time

As customer engages, send targeted content based on context and analytics

Cross-sell/ Upsell offers delivered to customer upon check-out (multi-channel)

Post-sale triggered messages delivered to drive loyalty, likelihood to return and repeat purchase

Identifying the customer & their prior multi-channel interactions based on opt-ins

Targeted/ analytically driven offers and messages delivered to consumer

C op yr i g h t © 2012 , SAS Ins t i t u te Inc . A l l r i g h ts r eser v ed .

Outbound campaign designed and executed in Customer Intelligence

Studio

Campaigns designed and Planned with SAS Customer

Intelligence & Data Mgmt.

Post-sale triggered messages delivered

to drive loyalty, likelihood to return

and repeat purchase

Event detected Inbound/Real-time Campaign(s) invoked

Visual Analytics

Marketing Operations

Analyze Campaign Effectiveness

CI Studio (Outbound)

CI Studio (Real-time Decision Manager)

CI Studio (Outbound/Inbound)

• Integration between SAS and esri

Location Analytics for SASDuas Abordagens

ArcGIS ServerSAS BI OLAP Clients

SAS Visual Analytics

ESRI Map Component

SAS Server

ArcGIS Desktop software

SAS Bridge for ESRI

SAS Bridge for ESRI

SAS Bridge for ESRI