Mexico. The telecommunications sector is in the midst of the greatest era of disruption since the introduction of the mobile phone in the late eighties. Not only does the stagnation of the regulatory environment threaten the agility of the market, but the revenues of Telecommunications Operators (CSPs), also decrease due to the incorporation of new players to the market.
With Google, Amazon, Facebook and Apple breaking into the sector with new business models, worldwide recognition and a supreme database, Telecom Operators have a tough battle. These brands are able to offer many services for free, monetizing their consumers' data and selling advertising space. Although it is obviously challenging to offer free services, there are still opportunities for Telecom Operators to be competitive.
These Telecom Operators are looking for smart platforms to leverage their position and create new revenue streams.
Timing is vital
The Internet of Things (IoT) is set to change the connected ecosystem and leave it unrecognizable. A recent PwC study revealed that by 2020 the connected home market could be worth nearly $150 billion — incorporating interconnected devices from smart flexometers to lighting.
Systems like Google Home and Amazon Echo are fighting for market share. While they have a good reputation by winning customers, Telecom Operators have the greatest potential to become leaders in the field of connected home.
This unique position is a consequence of the growing number of interconnected devices that need to connect, and service providers have the ability to provide the necessary data, giving direct access to users to provide both content and smart home services.
By analyzing conversion rates for offers, content usage and online activity, Telecom Operators can create attractive and personalized offers for individual subscribers, taking advantage of their unique position. To ensure they give the right offers at the right time, Telecom Operators integrate behavioral data with Artificial Intelligence (AI), making their service not only well timed but also valuable.
Customizing customer service
As the number of consumer devices increases, organizations have been able to sell to people through more channels. This doesn't always mean more sales—what it usually indicates is a growing level of demand for personalized service from customers.
Research from Accenture reveals that 75% of consumers are more likely to buy from those sellers who personalize their offers. This provides great sales potential for Telecom Operators, who have access to a wealth of behavioral data.
Beyond the additional revenue, incorporating AI into personalized offerings allows Telecom Operators to improve their brand reputation, customer satisfaction, and loyalty. When an offer is not personalized, the recipient can easily consider it spam. This is a massive impediment that frequently leads to the deletion of the message.
Through the intelligent application of AI, a brand can see real improvement and greater engagement in customers. For example, if a company offers a bolt-on package with a small amount of additional data to prepaid subscription consumers — saying that the data has been exhausted before the period cutoff — this will be considered a useful and beneficial offer. If this offer had been sent at the beginning of the period, it would have been considered spam. AI has the ability to personalize this scope and ensure that the contact is given at the right time during the consumer's purchase lifecycle.
Creating new sources of income
For Telecom Operators who want to use subscriber intelligence to create new revenue streams, there are three consumer models that need to be considered.
One of these is the consumer who has a postpaid account with services and content that encourages them to use high-speed data. By asking them to use their data when it is running low, the consumer may appreciate a personalized package of data that is made according to their use.
Another option is to offer those consumers in prepaid plans, incentives to make top-ups when their credit is running low. This tactic helps prevent abandonment, while also being practical for the customer.
Telecom Operators should also consider the content as an upsell for their customers. By subscribing to their content, they not only promote new products, but help the consumer exhaust their data packages faster.
Regardless of the end user, using behavioral data and machine learning to drive subscriber intelligence allows Telecom Operators to structure new alternate routes for financial gain and dominate the IoT ecosystem.
With the telecom industry facing massive regulatory overhaul and disruption, Telecom Operators will only survive by monetizing the potential of new products and services available on the network. Those suppliers who are ready to take the risk and adjust to a smarter way to increase their sales, while incorporating new technologies such as AI, will ensure that they are at the forefront in this new disruptive era of the sector.
Report written by Nuance Communications.
Leave your comment