Why Analytics is key for Telecoms - you snooze you lose!
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The document discusses the critical role of data analytics for mobile operators, emphasizing the need to move beyond traditional metrics and improve understanding of customer behavior. It highlights the necessity for telcos to leverage their unique position and client relationships to provide valuable insights while navigating privacy concerns. Ultimately, it calls for a strategic approach to data utilization to foster growth and innovation in services.
Why Analytics is key for Telecoms - you snooze you lose!
- 1. BEYOND CONSULTING | EXCELLENCE IN EXECUTIONBEYOND CONSULTING | EXCELLENCE IN EXECUTION | Analytics for Telcos No Future Without Kimon Zorbas LondonTelco 2.0 12 June 2014 Kimon Zorbas
- 2. BEYOND CONSULTING | EXCELLENCE IN EXECUTION Status • Data use has revolutionised human history • Online data analytics has helped many businesses to succeed: – E.g. new products and services; higher ROI; marketing; social engagement • Crucial for Mobile Operators – Maybe last chance to get it right – Mobile operators have a long history of failure understanding the digital challenge, react upon it and evolve accordingly – The list is long: handsets, services (e.g. Blackberry), apps, … – Above all: engineer-driven thinking of “I-can-do-this-myself” • Now is the time to get it right
- 3. BEYOND CONSULTING | EXCELLENCE IN EXECUTION Why is analytics crucial? • Analytics is making sense of data (basically structuring raw data) • Analytics allows you to understand what your clients do, how they do it, when they do it and where they do it (and allow you to reflect on why they do it) • Creates basis for strategic business decisions • How to capture and leverage clients insights? • Mobile is in a privileged position – Access to the “Data Treasure Trove”: Mobile use is extensive & increasing; even more persona than desktopl; apps use, …
- 4. BEYOND CONSULTING | EXCELLENCE IN EXECUTION What matters – right data or right deduction? • The more data, the more accurate your segments will be – Right data sets are crucial: just email traffic will not do – Diverse, reliable data • But you still need to make sense of it all – Getting it right is sort of crucial…
- 5. BEYOND CONSULTING | EXCELLENCE IN EXECUTION What to do with all that data? • Many opportunities: – Internal use and external use (enriching other data, offer insights to other sectors, show competitors how they are performing, …) • But here’s what not to do: – Sit on it: (Telco mentality was for over a decade: “It’s so valuable, I keep it and will never share with anybody”) • What data do I have? • What data do I need to run my (core) business? • What data would I like to have to improve (core) my business? • What data would I like to have to innovate new products and services? • What data can I “sell” / leverage externally?
- 6. BEYOND CONSULTING | EXCELLENCE IN EXECUTION My online experience - advertising • Online Behavioural Advertising works (sort of) • Online Behavioural Advertising fails (inaccurate, often relying on poor quality data) • Re-Targeting really sucks (ever haunted by a Zalando show ad?) • Bad re-targeting is a tremendous waste (e.g. Amazon advertising for already purchased ads) • Why is OBA (incl. re-targeting) good and bad? – Data sources – limited though expanding to a worrying degree (e.g. DailyMotion loading over 70 cookies-trackers!) – Data quality – often substandard, not rich enough
- 7. BEYOND CONSULTING | EXCELLENCE IN EXECUTION Mobile Operators (last?) chance • Mobile operators in unique position to provide added value • Can provide data with better quality • Have (mostly) existing and robust client relationship • But: Telcos need to get out of their comfort zone and need to re- establish client-relationship beyond billing and trouble-solving • And Telcos need to get it right, legally (privacy, consent – aggregate vs anonymous probably to become irrelevant) • And Telcos need to offer an intriguing value-exchange to clients
- 8. BEYOND CONSULTING | EXCELLENCE IN EXECUTION Privacy & control could lead to growth Addressing privacy is more than compliance – it can foster growth Source: McKinsey Quarterly Insights & Publications, March 2014, “Views from the front lines of the data analytics revolution” “Privacy concerns must be addressed—and giving consumers control can help… Our analytics leaders were unanimous in their view that placing more control of information in the hands of consumers, along with building their trust, is the right path forward.”
- 9. BEYOND CONSULTING | EXCELLENCE IN EXECUTION Privacy has business relevance Source: BCG Global Consumer Sentiment Survey 2013
- 10. BEYOND CONSULTING | EXCELLENCE IN EXECUTIONBEYOND CONSULTING | EXCELLENCE IN EXECUTION The future is yours – if you exploit the opportunities and get it right!
- 11. BEYOND CONSULTING | EXCELLENCE IN EXECUTIONBEYOND CONSULTING | EXCELLENCE IN EXECUTION © DBCG www.dbcg.eu kimon@dbcg.eu @kimon_zorbas