Money for Nothing
Dr. Stefan Schwarz
Director Telecommunication, Media &
Entertainment, Teradata GmbH
“On average Telcos spend approx. 27% of their overall opex on customer acquisition & retention!
Source: CapGemini
CapGemini TME Lab Analysis based on operator annual reports and industry reports
But perhaps the axe is not the best tool …
Starting in the late 1880s, the Swiss Army Knife was used to open canned food and disassemble the Swiss service rifle, the Schmidt-Rubin M1889, which required a screwdriver for assembly.
DISCOVERY PLATFORM
INTEGRATED DATA WAREHOUSE
ERP
SCM
CRM
Images
Audio
and
Video
Machin
e
Logs
Text
Web
and
Social
SOURCES
DATA
PLATFORM
Business Intelligence
Predictive Analytics
Operational Intelligence
Data Discovery
Path, graph, time-series analysis
Pattern Detection
Fast Data Loading & Availability
Filtering & Processing
Deep History: Online
Archival
ACCESS MANAGE MOVE
UNIFIED DATA ARCHITECTURE Business Conceptual View
Fast-Fail Hypothesis Testing
Teradata Customer Management Cases
RETENTION VALUE MGMT AQUISITIION
Integrated Comm.,
Price Promo & Subs
Avoiding churn
inducing upsell
Avoid Useless
retention
Low Affinity Products
Under-estimated
Usage Elasticity
Insufficient Retention
Manual Portfolio Mgmt.
Product Cannibi-lization
CEM based retention
Integrated Comm.,
Price Promo & Subs
Avoiding churn
inducing upsell
Avoid Useless
retention
Avoid useless retention
0,0%
2,0%
4,0%
6,0%
8,0%
10,0%
12,0%
0
2000
4000
6000
8000
10000
12000
10% 14% 18% 22% 26% 30% 34% >38%
Nu
mb
er
of
cust
om
ers
Saving potential actual product compared to competition
Ch
urn
rate
Price independent churn
Price related churn
Avoid churn inducing upsell activity
0,0%
2,0%
4,0%
6,0%
8,0%
10,0%
12,0%
0
2000
4000
6000
8000
10000
12000
10% 14% 18% 22% 26% 30% 34% >38%
Nu
mb
er
of
cust
om
ers
Saving potential actual product compared to competition
Ch
urn
rate
Price independent churn
Price related churn
Is your BI equipped to help optimizing acquisition
to report all acquisition costs as direct cost
adhoc
to report all acquisition costs on a
customer individual level
to forecast all acquisition cost across multi-
dimensions (channel/POS, tariff, handset,
customer segment) very precisely
to predict individual customer value
precisely for 24 months forward looking
Does your BI environment provide the ability?
Value of customer management opportunities
0,0%
10,0%
20,0%
30,0%
40,0%
50,0%
60,0%
70,0%
80,0%
90,0%
100,0%
0,0% 1,0% 2,0% 3,0% 4,0% 5,0% 6,0% 7,0%
Useless Retention
Underestimated
Usage Elasticity
Product
Cannibalization
Integrated Subs
& Commisions Insufficient Retention
Manual Portfolio
Maintenance
Low Affinity
Upselling Offer
Billing errors
Overall potential calculates as 7,1% of total company revenue
Saving
potential [% of
opportunity
value]
Value of opportunity [% of company renue]
Summary & Outlook
• The value opportunities in
customer management are
still huge (perhaps bigger than
ever)
• Infrastructure/tools, use case
definitions & methodologies
exists and are proven.
• It is time to meet the challenge
and unlock the huge untapped
value in customer
management
Dr. Stefan Schwarz
Director Industry Consulting Telco,
Media & Entertainment
TERADATA
M: +49-173-74-88381
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