Datameer Blog post

Four Ways Telefonica Uses Big Data to Put Customers First

by on Feb 27, 2018

Competing in any market today is incredibly difficult. But competing in the telecommunications market, where there is an incredible degree of industry disruption and digital transformation, can be more difficult than most.

In our solution brief, Upgrade the Telecom Service Customer Experience with Big Data, we discussed the three main strategies telecoms use to compete, based on the Treacy and Wiersema value discipline model:

  • Operational excellence companies that use superior business processes to deliver the best price through streamlined execution
  • Product innovation companies that focus on identifying and providing innovative new products and services that can carry a premium price
  • Customer intimacy companies which know their customers cold and use superior customer service and timely offers to build a lasting, pro table relationship

As published in the European Business Review, Datameer customer Telefonica Germany is using the third Treacy and Wiersema strategy in what they call “Putting Customers First.” And big data plays a large role in executing this strategy.

Let’s look at four ways Telefonica Germany is using Datameer and big data to create a competitive advantage.

1. Improving the Customer Experience Standpoint With Big Data

Traditionally, service providers viewed their networks from a network management standpoint – keep things running and fix services when broken. The Telefonica network operations center uses big data to make both customer engagement and network management equal partners in keeping customers happy.

Telefonica takes complex information from the network and services, and then correlates and aggregates it. They use this to examine the complete user experience and see how services are operating. Armed with this critical information, teams no longer simply fix problems on a rote, individual basis. Instead, they see where customer-experience problems are occurring on a wide scale and craft solutions which ensure customers have a better overall user experience.

2. Increasing Proactive Telecom Customer Service With Big Data

When service experience or network problems occur, the standard operating procedure is to quietly go about fixing the issues and hope customers did not see a disruption. In other words, solve the problem and “sit back and pray.”

Using big data and its customer-first mentality, Telefonica takes the opposite approach by arming customer service centers and identifying incentives to keep customers happy. Customer service agents can then answer customer complaints with proactive offers to drive retention and satisfaction.

3. Improving Telecom Service Assurance Collaboration With Partners

Service experience chains are becoming ever more complex, especially with higher level internet, video and mobile services. Now, the total service experience goes beyond what the network offers to the total end-to-end experience.

Recognizing the importance of the total user experience, Telefonica partners with its application providers and uses big data from its network to optimize the service experience. Big data helps measure test deployments at a complete service level and isolate problems, identify optimal rollout plans on the network, and create cooperative service metrics and KPIs that Telefonica and their partners can drive towards.

4. 360-degree of Customer Behavior Through Data Engineering

With the wide range of services across a multitude of networks offered by carriers today, it’s easy for carriers to lose the forest among the trees. Maximizing the lifetime value of each customer requires a complete view of customer behavior, service issues and churn.

In putting customers first, Telefonica uses big data for a 360-degree view of how a customer uses all of their services, problems they have encountered, service complaints and what retention strategies need to be applied. This helps ensure each customer can have a long life with Telefonica, maximizing satisfaction and long-term revenue.

Conclusion

At Telefonica, creating a customer-first atmosphere required a cultural change of using data to foster new ideas that keep customers happy. This requires a data engineering platform that can help bridge customer, network and service data, and democratize that resulting analytics-ready information across the company. Doing this the right way will break down silos of information to drive both customer and operational insights.

As a result of undergoing this process, Telefonica now generates new ideas to continuously deliver better networks and services for their customers.

Posted in Technology, How-to, Customer Stories

John Morrell is Sr. Director of Product Marketing at Datameer.

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