Passionate about Adding Value

A good month ago I changed my position from heading Marketing and Communications to leading the newly established Analytics Business Unit in Comptel. Since then, I have had six customer meetings in the Middle East Africa and Asia Pacific regions in addition to the kick-off workshop with the new team and one week of holiday. To sum up, I could state that my past six weeks have not been boring.

Some of my friends and my dear daughter have asked about the constant source of energy to go for something unknown or new. Advanced analytics is still taking its baby steps in the telecommunications industry. One friend was teasing that wouldn’t it be nicer just to focus on gardening and fishing instead of running constantly into new challenges. The answer to the latter question is naturally yes, but when one has the passion for something else, why not to go for it as long as the inspiration and motivation is there? And the former question? I simply love my job and my colleagues from whom I learn everyday something, if nothing more, about myself.

What keeps me going then?

Think back to one of those moments when you succeeded in making somebody really happy and were appreciated for it? How did you feel? I’m sure you felt good. It’s the same with my job. Those of you who have been in the technology business know that it’s not always bed of roses when delivering complex solutions. However, when you have delivered the solution and see the satisfied smile on the customer’s face, you can feel good as well. You might not be as emotional in this sense as I am, but it’s maybe worth reminding that customer satisfaction and customer profitability have a strong correlation.

During the trips to the regions, it was my great pleasure to meet one of our customers whose marketing team was very happy with the results which we had delivered together with them. I also met some communications service providers (CSP) who don’t yet have our analytics, but who got nearly as excited as I about the business opportunities we could bring to them. To be fair, I must admit that I also visited a customer site, where we are still in the building phase and are a bit learning the environment and way of working. However, I was really delighted to experience the spirit of collaboration “to build the success for both parties”, as the customer stated.

How do I know whether we are adding value?

The hot topic of the entire ICT world is Big Data. There is a lot of hype around it and some scepticism, whether the CSPs can ever really monetise it. In telecommunications, the tendency has been to invest in large systems and then start building something valuable on top of it. The market is changing faster than it used to, and maybe there is a need for more dynamic and ready thought-out solutions to address specific business issues? This is the way how we think we can help derive value from Big Data. We have been working on specific business cases that are based on some of the real results from our projects. Naturally we have applied them in fashion that protects our customer’s anonymity but are still very enthusiastic about the opportunity, for example, to help CSPs prevent churn to both stop wasting their marketing OPEX and get more revenue per customer. One exciting opportunity is related to new technology launches such as LTE, but there are many more.

This week has been another inspirational week for me

Although I did not have time to participate in the Management World 2013 in Nice, I can remotely celebrate the announcements which we have posted at the event. Naturally the greatest pleasure was the Pipeline Innovation Award of the Customer Experience Management for Comptel Social Links. The other news, such as the innovations intent with a cloud computing leader, Salesforce.com and collaboration with Tech Mahindra Limited show that we as a company have succeeded to encourage our people to come up with non-traditional ways of delivering customer value and to understand the importance of partnerships.

The first weeks with the Analytics Business Unit have been hectic and I don’t expect anything less from the future, but there is so much positive momentum and customer interaction that it keeps me and the team going.

Breaking the Language Barrier Between CMOs and CIOs

Traditionally, the telecommunications industry has been separated by a common language: the language of business. CIOs and CTOs, along with their respective teams, have been controlling networks and performance optimisation, while CMOs usually focus on business growth objectives like sales, churn and retention.

What this means is that CIOs’ and CTOs’ performance is evaluated by different metrics than CMOs, so they are concerned about different things. When I attended Mobile World Congress 2013, I witnessed this firsthand. In one corner, communications service provider (CSP) CIOs and CTOs were discussing the impact of cloud, M2M and LTE on their networks. Meanwhile, CMOs and CEOs talked about consumer devices, apps and the latest movements in the market.

The hurdle CSP executives face now is that, to take advantage of the latest innovations and meet their respective objectives, they have to work closer together than ever before.

Painting the Big Picture

Within most CSPs, there are distinct silos. Teams from different organisations rarely talk about the same issues and aren’t often looking to solve the same problems. However, one issue that bridges this divide is customer experience. CSPs want to make sure that customer service is as good as possible. If you’ve delivered a great customer experience, your efforts are praised…no matter what team you’re on.

This is where CIOs, CTOs and CMOs have to discover common ground. As networks expand and markets change, CMOs are going to have to learn more about network optimisation, and CIOs and CTOs will have to start thinking about analytics, marketing and service personlisation. Thanks to technologically complex innovations like predictive analytics, marketing and technology are now inextricably linked.

I believe that every team can acknowledge that one of their top priorities is creating a seamless process that allows the business to define and maximise a customer’s lifetime value. By shifting the focus from network or business metrics to customer experience metrics, CSPs can change the dialogue between silos.

A Holistic Experience

In the telco industry, the future of networks is marketing and the future of marketing is networks. When a customer is using data across a network, CMOs now need to know how the data is being used. This allows for real-time, targeted marketing campaigns aligned with customer usage trends.

These kinds of findings would be impossible without the help of the CTO and CIO, as they track the performance and behaviours across a network. Likewise, advanced, automated marketing campaigns are going to impact networks in new ways.

By uniting silos with the common goal of creating a better customer experience, teams can finally break the language barrier and work toward shared objectives. This shift won’t just help revolutionise things for customers, it could help revolutionise things for CSPs, too.

Comptel will be at Management World 2013 in Nice, France from 14 -16 May. Stop by if you’re there and we can talk more about the future of CSP marketing!

Four Reasons Why the Telco Industry Needs to Be Thinking about Big Data

At Comptel, we really do believe that data is more than just bits and pieces that can be turned into something truly beautiful. This may seem like a daunting challenge to most communications service providers (CSPs), but that’s why we’re here.

We’ve been doing a lot of work to change that perception—and it’s clear that we’re not the only ones thinking about how Big Data can be a game-changing asset for CSPs. Here are four recent topics that have come up in the news that draw on Comptel’s studies and opinions on Big Data:

1. Flexible Service Packages

As mature markets become saturated, CSPs have to get creative with offers, and one thing is for certain: service packages are going to have to change.

In a recent Computerworld Bulgaria piece, we saw the consumer survey that we debuted at Mobile World Congress highlighted to put more emphasis on this trend.

To recap: our survey found that 49% of consumers chose their current mobile operator because of the service plan, and almost half said they would pay for a temporary upgrade that improved their plan.

The bottom line is that CSPs need to find a way to get the right promotion to the right customer at the right time. Using predictive analytics, it’s now possible to make sense of Big Data and proactively offer the right customers a more flexible service plan that can meet their needs.

2. Relationships

As our CEO Juhani Hintikka recently wrote for Innovation Generation, it’s time for telecom to get a little more personal. After all, CSPs are spending as much as 20% of their revenues on retention and compensation for churn. Not only that, 34% of customers say they would or might change their operators if they could.

As Juhani writes, “If more than a third of your customers are thinking about switching services, you have a serious loyalty issue.”

By harnessing the power of analytics to make sense of Big Data, CSPs can reduce churn and build better relationships. About nine out of ten consumers say they want a more personal connection with their mobile operators. If CSPs take the time to analyze data sets, they can foster that connection by giving customers exactly what they need, when they need it.

3. Monetization

In a recent RCR Wireless News report, The smarter telco: Exploring service and network intelligence, Kelly Hill explains that many CSPs are looking for new ways to keep monetizing their services. She points to three specific trends that will have a huge impact:

• The transition to all-IP and LTE networks
• The accelerating trend toward cloud connectivity and network virtualization
• Big Data collection and processing

When discussing Big Data, Kelly cites our research showing that only 27% of operators are currently using analytics on a daily basis, while 33% are using them on a weekly basis.

This could prove to be a disastrous oversight for CSPs. As trends like the shift to all-IP networks and cloud connectivity come into play, analytics that can drive the most value out of Big Data in near real-time is critical for engaging customers and making business decisions.

4. Influence

Big Data analytics isn’t just about finding out what customers need, it’s finding out which customers are influential.

In a recent Financial Times web piece that cited one of our recently commissioned whitepapers, the big message was that, finally, CSPs have the technology to actually use the considerable data at their disposal.

The piece highlights several viewpoints from established telco experts. One of the most interesting points is that, by using Big Data, CSPs can discover which customers are “queen bees.” These are the users who have extensive networks of friends and family. If this particular user leaves his/her operator, then dozens of others could follow because of that influence.

So, it’s best to use Big Data to identify those “queen bees” and find ways to make sure they’re happy.

Continuing the Conversation About Big Data

Most CSPs have Big Data in one form or another, but having it and using it to its full potential are two different things. As this conversation shifts from data to strategy, it’s time to consider how to best operationalize all the valuable information that’s been gathered. In other words, it’s time to leverage Big Data for results.

Over the past few years, Comptel has worked hard for those results to be attainable by offering advanced predictive analytics tools that can automate customer interactions and take relationships to the next level. We’re at the start of an exciting new kind of Big Data revolution. With the right strategy and the right tools, CSPs won’t just have more information for their operations than ever before, they’ll actually be able to do something with it.

Comptel’s Strategy Update – Turning Big Data into an Opportunity

Comptel held Annual General Meeting on Wednesday 20^th March. Our Board of Directors and management updated the company’s strategy and objectives for the next three years. The updated strategy for 2013-2015 focuses on accelerating the execution of the Event-Analysis-Action strategic framework we launched in 2011. Comptel is aiming at over ten percent growth in net sales annually and EBIT margin between 8 to 15 percent during the strategy period. This includes scaling up the sales with partners. Both of these focus areas facilitate Comptel’s growth strategy.

The market demands the communications service providers (CSPs) to better monetize the growing data traffic, known as Big Data, beyond the communications network data. This data can include for example usage data, social network data, location and customer relationship management data. Comptel helps the Communications Service Providers (CSPs) turn the Big Data into an opportunity. Today, Comptel already processes 21 terabytes (10¹² ) data per day.

Comptel’s differentiation strategy challenges the traditional operating and business support system (OSS/BSS) approach by bringing predictive, real-time analytics as an innovative element to help CSPs integrate technical, sales and marketing organisations and automate the CSP’s customer interaction. We commissioned a research earlier this year that revealed that nine out of ten customers desire personalised interaction with their mobile operators. The yearn for communication at every touch point—from the first interaction when joining the service to when they are experiencing issues with the service to when their needs are changing.

Key investments in the product and solution offering will focus on strengthening the Event-Analysis-Action approach. Big Data opportunity strengthens Comptel’s position in event data collection – applying analytics turns this data into automated actions that are carried out by Comptel’s service order orchestration.

By the end of 2015, Comptel aims to become a recognised thought leader and leading solutions provider in customer interaction automation space.

Mobile World Congress 2013: Guest Speakers on LTE, Analytics

As I mentioned the other day, Mobile World Congress was filled with excitement, with a robust exchanging of ideas among the various attendees and our customers and partners, as we look to the future of telecom. At the show, we were happy to further some of the discussions on LTE and analytics by welcoming a few guest speakers to Comptel’s booth.

The founder of operator benchmarking consultancy tefficient, Fredrik Jungermann, took us through how to pinpoint the right LTE customers. He first mentioned that not as many LTE customers are signing up as operators would like, but the numbers are rapidly growing. For example, 58% of Korea’s data traffic was over LTE in December 2012, and, likewise, Tele2 in Sweden saw an LTE penetration of 40%.

Fredrik explained that we’re transitioning away from a world of unlimited data, with more demand now put on unlimited voice and text. Of the smartphone data that is being used, 60% is through Wi-Fi, which is going un-monetised. With this in mind, he posed the question: what if operators could turn things around and monetise this traffic using LTE or operator-owned Wi-Fi?

The upsides include basic monetisation, which will mainly be based on volume, and as data traffic grows over the top (OTT) players can become an additional source of revenue. Further, offering shared data plans will help enable unused devices and drive revenues even further. The downside to this, though, is that it can be costly to supply LTE handsets, as they have the highest specs. Analytics can help match the expensive and rare handsets to the right customers – dynamically based on individual customers’ needs and behaviours. Overall, this is much more efficient than providing subsidised LTE handsets to everyone.

Additionally, we heard from Zain Kuwait’s director of management information systems, who delved into the various ways the company is improving the customer experience with analytics. If you are interested in learning more about this presentation, as well as Fredrik’s, please email comptel.marketing@comptel.com.

What did you think of this year’s Mobile World Congress? We’d love to hear your favourite highlights and if you heard any interesting news or stats around LTE and analytics. Safe travels home to all!

Mobile World Congress 2013: Qtel Rebranding

Here in Barcelona, I had the fantastic opportunity to attend an exclusive Qtel event in which the company unveiled its new brand: Ooredoo. This translates to ‘I want’ in Arabic, which reflects the telco’s new focus on customer centricity and catering to end users’ desires. Examples of this vision include statements like: “I want a service that reflects who I am”, “I want the world to smile with me”, and “I want to fly higher”.

There were an amazing number of people who spoke at the launch, including Cherie Blair on her charity for women, the general of the International Telecommunication Union, the director general of the GSMA, Qatar’s Olympic medallist from the summer 2013 games, and the CEOs of Qtel Qatar and its subsidiary, Indosat. It was also announced that football star Lionel Messi is the operator’s new global brand ambassador, although he was unable to attend due to an important match.

Ooredoo strides to enrich people’s lives by understanding every single person’s wishes and dreams, and looking at how they can be fulfilled regardless of income or demographic. With this thinking, mobile services and Internet will be more broadly distributed in order to evolve the mobile economy, for prosperity, equality and beyond.

It was clear that the operator is really committed to people’s needs, as both connecting and challenging customers was stressed. It’s leading a Millennium initiative with the GSMA to help alleviate the burdens of poverty, simplifying broadband access so more people have the opportunity to educate themselves.  The CEO of Indosat, Alex Rusli, explained that island people previously had to travel up to four hours for the closest services. After access was made available where they lived, they started to grow and develop. The moral of this story is that rural communities should have the same opportunities as those in the city – everyone deserves an opportunity to grow.

Adding to this is a particular emphasis on women. For instance, the company is rolling out a special program in Iraq specifically for women where the tariff decreases after three minutes of a voice call. Since women tend to talk for longer periods over the phone, they can now enjoy less expensive calls. There are also going to be more female staff serving women at various points of sale and an initiative to help women establish businesses – checking the price of fabric, for example, to ensure they are not overpaying.

Every person wants to grow, and Ooredoo is providing the opportunity to do so by contributing to social business, enriching people’s lives and connecting the world. What do you think of Qtel’s new brand? Leave your comments here or email us at comptel.marketing@comptel and share your thoughts about the 2013 Mobile World Congress!

Mobile World Congress 2013: Live from Barcelona!

The excitement was (and still is) palpable here in Barcelona, as Mobile World Congress kicked into full gear yesterday. The keynote sessions on day one did not disappoint, with four of the largest mobile operators across the globe outlining their business strategies over the past year and looking ahead to 2017 and beyond. First up was chairman of the GSMA and CEO of Telecom Italia Group, Franco Bernabè, who stated that spectrum, privacy and investments must be the key focus for mobile operators moving forward.

Sixty-two million wireless connections are already using LTE, and this number is expected to grow to 920 million by 2017. Spectrum, then, is clearly a priority. However, as Bernabè explained, it’s critical to do more than simply having the right amount of spectrum—mobile operators must ensure that it is also harmonised across the world, in turn, making mobile services more affordable for consumers.

Privacy is another element for operators to consider, as mobile phones are carrying an increasing amount of personal information. With $350 billion compromised this year due to security risks, there is a clear place for mobile operators to become central in secure identity and access management.

Finally, Bernabè urged, operators must find a balance between competition, innovation and investment. Investments will depend on three factors: economics of scale, foreseeable business environments and up-to-date regulatory frameworks. He continued saying that operators must remain committed to Near Field Communications (NFC), LTE and voice over LTE (VoLTE) to create economically viable competition, especially in regions where excess competition is depressing the markets.

Following the opening remarks, GSMA’s director general, Anne Bouverot, moderated a discussion on the challenges and opportunities for mobile operators. AT&T’s president and CEO, Randall Stephenson, believes that we’re moving from a period of wireless experience on mobile devices to one where connectivity is always assumed and new services, like home security and mobile wallets, can be layered on top.

Next, China Mobile’s chairman, Xi Guohua, added that operators should be more concerned about OTT competition, which can erode the value of services. He suggests consolidating industry resources, like networks and devices, to gain a competitive advantage in the value chain. Additionally, Xi believes there is an opportunity with LTE to strengthen collaboration among the Internet of things, such as M2M, which will increase dialogue and align interests for the world’s operators.

Adding to this, Telefonica’s executive chairman and CEO, César Aliert, stated that operators need to lead the ecosystems into a healthy future by implementing new commercial models to better serve customers and change market dynamics. This includes breaking the taboos associated with network rollout and providing the best experience possible to customers.

Then, Vodafone’s CEO Vittorio Colao dove into how his group of operators is transforming in this digital revolution. Interestingly, he noted that more than a quarter of mobile users check their phones at the dinner table, and 66 percent sleep with their phones. Life is clearly mobile, and this is only going to increase. Because of this, Colao stated that operators need to enrich the customer experience with other services. Winners will be those who have the best products and lowest prices and are most willing to compromise and put in the work.

So far, the keynotes have been exciting to listen to, and the show floor has been packed! We’re looking forward to attending more sessions and meeting our customers, partners and other across the industry to share ideas about our changing telco landscape. In the meantime, stop by our booth in Hall 6, stand 6C30!

Survey: Customers Yearn for the Personal Touch from Mobile Operators

It’s no secret that customer experience is a crucial element to communications service providers’ (CSPs) business growth strategies. Last year, I talked about the necessity to anticipate customer needs to help accomplish this, as highlighted by a survey conducted with research firm Vanson Bourne. This year, we worked with the company again to gain a global understanding of subscribers’ feelings toward their CSPs and found that they indeed welcome, and in fact desire, this personalised communication at every touch point. This includes from the first interaction when joining the service (35%), to when they are experiencing issues with the service (61%), to when their needs are changing (40%).

When would you like to have more personalised help/contact from your operator?

The good news for CSPs is that these interactions can help recoup the 20% of revenue that is currently being spent on churn compensation and retention, according to telecommunications industry consultant tefficient. While this number is staggering, it also means there is a huge cost-savings opportunity – if CSPs can earn customer loyalty. For one, churn prevention can be significantly reduced as, currently, more than one-third of consumers indicated that they might consider changing their mobile operators now if they could.

Would you like to change your operator now if you could?

Adding to this, there is a significant revenue opportunity to be had if CSPs personally interacted more often with customers.  For instance, almost two-thirds of consumers said that they would like to download large files to their devices more often if they had a better rate plan for their mobile data, better bandwidth or a better device, and nearly half (49%) would pay for a temporary upgrade to download those files more quickly and improve their viewing experience, if offered.  On average, consumers are willing to spend $3.80 for a temporary service upgrade—accounting for an increase in ARPU of 12 percent.

If your mobile operator offered you a temporary bandwidth boost / data consumption upgrade for a small charge, how much would you pay?

As I mentioned in today’s press release, the key to making this a reality and, ultimately, to earn customer loyalty, is through contextual intelligence at every touch point. As the survey results show, consistent, personalised interaction puts CSPs one step closer to winning consumers’ hearts, more efficiently utilising assets and profitably monetising their offerings.

Data for this survey was gathered from consumers in Brasil, Chile, France, Germany, the Philippines, Poland, Russia, Saudi Arabia, South Africa, Spain, the United Kingdom and Vietnam. A full copy of the research report will be available at Mobile World Congress (25-28 February 2013 in Barcelona) in Hall 6 at Stand 6C30, or by contacting comptel.marketing@comptel.com. You can visit our show microsite as well, for further examples of intelligence at every touch point.

A Deeper Look at Analytics-Driven Policy Control and Charging

Today, we announced a joint real-time policy control and charging solution with Procera Networks, Inc. I thought this was an opportune time to sit down with Comptel’s resident policy experts, Malla Poikella and Tinakaran Ramdas, to discuss the state of policy – how it’s changed, the important elements involved, and what our partnership with Procera means for policy control and charging.

Q: How have we seen policy management mature, and how will this area continue to evolve in 2013?

Malla: Policy management will be present everywhere. Traditionally, it was just used to control network activities like bandwidth and usage. Now, it’s no longer constrained to the network and is effecting a much larger scope with charging, for instance, playing a greater role. Adding another layer to this is analytics, which enable more actionable intelligence that can be used to determine which individuals to engage, when to engage and the proper message to send to them. This type of targeting will, in turn, work to prevent churn and generate revenue.

Q: How important is real time to this?

Tinakaran: Throughout the whole cycle of policy control and charging, real time has played a huge role. But, you must understand that there’s a difference between real time and what we call ‘online’. Whereas real time can experience somewhat of a lag, online communications happen immediately. To illustrate this point, imagine streaming a video that keeps stalling. Operators can send a message in that exact moment saying that they are going to give you a boost because you’re a valued customer. This is an online communication – something that is relevant to customers while they are experiencing issues like this. It not only helps alleviate that certain problem, but drives loyalty gains in the long run. Real-time communications, on the other hand, takes a little longer, so you might receive an offer ten minutes after you’ve already finished the video – making it much less relevant.

Q: Policy control was a hot-button topic two to three years ago. Why is it still relevant and critical for communications service providers (CSPs) today?

Malla: Policy control is a key enabler of revenue generation, but data is also an important part of this – which has presented a problem for operators in the past when it comes to how to best harness and manage it. With today’s tools, though, operators can more easily do this, as analytical capabilities provide both user and network insights. This holistic view means operators have the clearest path to rate and charge intelligently.

Q: Why did Comptel and Procera decide to engage in this partnership?

Tinakaran: This partnership allows Procera further granularity into different services offered and, as a result, more opportunities to generate revenue. For instance, a user may want a special package for social services – now, with Comptel, Procera can understand user needs like this and target them accordingly with a specialised package. This granularity is enabled with both DPI and policy capabilities, allowing Procera to offer various packages, monitor that usage and then charge for them accordingly.

Is There an Monetization Upside Using Analytics when Launching LTE?

Contextual Intelligence at Every Customer Touch Point

The telecommunications market has become increasingly data driven; it plays a central role and extends into all areas of people’s daily lives. Consumers and business customers alike are looking for services and applications that reflect their diverse and individual needs. Over-The-Top players (OTT) such as Facebook, Google, YouTube and so forth, are increasingly successful in winning the hearts, minds and wallets of customers, by offering the applications and services that meet customer needs ‘beyond connectivity’.

“Monetising the data” –topic has been hot for a while now in telecommunications and other enterprises. Monetisation in terms of growing the data traffic and revenue but also using the data for customer and network intelligence is a huge business opportunity and yet challenging to capture. We see data as a lever for the CSPs to connect emotionally with their customers at every touch point where they interact with their customers.

Such interaction include a specific, personalised campaign at the moment when the customer is most open for a new offering or a temporary capacity allocation for a heavy video upload need. Our consumer research, which we conducted in 12 countries across the globe by VansonBourne, December 2012 (will be launched prior to Mobile World Congress) , shows that nearly half of the consumers would be willing to pay for a temporary bandwidth boost or data consumption upgrade. Thus the potential is there and can be monetized by leveraging advanced and predictive analysis and automated decisions and actions to make and save money. In other words; by leveraging contextual intelligence at every touch point.

At Mobile World Congress we will discuss the topic in more details with concrete showcases. The business use case list is long, but we have chosen the ones, which on one hand can demonstrates quick business results and on the other, can help CPSs integrated their organizational teams.

• Analytically-enriched order orchestration
• Analytics-driven, predictive policy control
• Contextual Mobile Data Campaigning
• Using a Federated Model to “Make Inventory Work”
• Customer value driven network prioritization

On Tuesday, 26^th we will have a special guest, Fredrik Jungermann, the founder of tefficient, who will discuss on:

“Pinpoint the right customers – or dilute margin”

Fredrik shares his analysis of advanced LTE markets – including the US – with focus on the impact LTE has on the profitability of leading service providers. Is there an monetization upside using analytics?

To book your seat send the meeting request with a specific reference to: “Right customers for LTE”.  See you there!