SOLUTIONSDEMOS AND VIDEOSKNOWLEDGE CENTERREQUEST A DEMOABOUT

US
NEWS HOW ARE TELECOMS USING CUSTOMER DATA?

How Are Telecoms Using Customer

Data?
By: Anna Papachristos
1to1 Media
Feb. 02, 2015

http://www.1to1media.com/view.aspx?docid=35220

Discover which data points telecom companies are collecting and how
they're using this consumer insight to enhance experience, improve
relationships, and reduce churn.
Telecommunications companies have been gathering customer data for
decades, but the recent interest in Big Data continues to draw considerable
attention to customer data collection processes. Not only are customers
concerned about the 'how'—the ways in which such information is gathered—
but also, the 'what'—which data points are being tracked and for what
purpose.
No matter the industry, data security weighs heavily on both the company and
the customer, as breaches remain one of the biggest threats to consumer
safety and satisfaction. Thus, it's important to maintain transparent data
collection strategies in order to retain trust and loyalty. Customers are well
aware that telecom brands collect information for billing purposes, but as such
methods become more granular, all such companies must offer clear privacy
policies and opt-out capabilities for those consumers who wish to control their
personal data independently.
On average, says Ryan Pellet, chief strategy officer at Nexidia,
telecommunications companies collect four general types of data:
1. Data about the customer—For existing customers, two-thirds of this
information comes directly from the given company, while one-third comes
from third-party data organizations that gather insights, such as credit ratings
and household demographics. Prospect data, however, comes from third-
party sources entirely. Brands have also started to embrace social media data
in an effort to understand consumer interests and behaviors and develop
wellrounded, targeted profiles.
2. Data about the customer's usage—Tracked via telemetry, usage data
focuses on the who, what, where, and how behind consumer behaviors.
Companies gather insights into the duration of usage activities, how often this
set of behaviors occurred, and if a company's interactions with a customer
based on this information worked. Unfortunately, however, much of this usage
information gets tossed aside, while the crucial data points are used to
calculate billing costs. Unused data, conversely, offers insight into potential
improvements.
3. Data that ties usage to rating and billing—Generated by the product and
marketing teams, this information determines how much consumers should be
charged for making calls or using data. Because consumers are increasingly
quick to switch providers, companies must constantly look for new ways to
differentiate their services, retain current customers, and recognize their
values. Thus, companies must employ competitive intelligence to curb churn
and maintain appeal.
4. Data about customer interactions with the company—Customer interaction
information comes from any and all brand interactions consumers have had
with the organization throughout their journeys. From phone calls, to email or
social media conversations, this data is also the largest non-monetized
dataasset for most telecom companies. Brands must listen to this feedback by
creating listening posts that will enable them to assess what's right or wrong
and the competitive landscape.
Before diving into this incoming data, of course, telecom companies must
determine which points will be most valuable for strategic business planning
and development. Rebecca Sendel, senior director, product management at
TM Forum, says that, to determine which relevant data points should be
collected and analyzed, telecom companies must begin with the end goal in
mind. Brands must consider the problems they are trying to solve and what
they're trying to improve by collecting data. Such thinking must be at the core
of data collection, as data just for the sake of data serves no purpose. This
data should also help to expose areas for improvement, monitor success, and
establish priorities to ensure the most valuable consumers are receiving
optimal service no matter their interaction channel. External data, specifically,
can reveal what kind of services customers would like to have so the company
may better target or alter their marketing practices to define and personalize
upsell offers according to customer behavior.
 "To provide real-time, personalized, and appropriate offers to improve
customer engagement, telecom operators require a holistic, contextual
understanding of their individual subscribers' usage patterns, behaviors, and
circumstances, such as location and influencer circles, in order to fully
maximize their business opportunities, says Mikko Jarva, CTO, Intelligent
Data at Comptel. "Technologies and practices of extracting real-time insights
from the data streams through analysis provide means for telecom operators
to react more quickly, become more informed, and react in more targeted
ways to changes, opportunities, and threats to their business, enhancing
customer relationships and driving continued loyalty."
Because the amount of data being stored and analyzed continues to expand,
companies now have ample opportunity to deepen customer relationships.
For instance, proactive services, such as rectifying issues before the customer
knows something's wrong or making data plan offers that better fit usage
patterns, not only strengthen loyalty and satisfaction, but such actions also
increase consumers' willingness to share their personal data. Now, companies
can drive actionable recommendations based on these patterns.

One leading telecom company, for example, now leverages usage data to
track the general daily usage of its products and services at the individual
customer level. The brand can detect when individual daily usage isn't in
alignment with the given customer's overall usage patterns, as this may signal
service issues that need to be rectified promptly. Through proactive
investigation, the company can often reveal and remedy issues before the
customer ever becomes aware of the problem. Employees
will then notify the customer of the issue and its resolution, calling their actions
to attention and requiring the customer to confirm their flawless service.
Ultimately, this strategy switches the dynamic, as the company takes
responsibility for monitoring service instead of depending upon the customer
to discover and report any issues. The brand can get ahead of major issues
that may impact long-term customer satisfaction and retention, thereby
delivering uninterrupted, consistent service that differentiates the customer
experience.

With so much data to collect and analyze, it's often difficult for companies to
bring everything to action simultaneously. Thus, telecoms must establish end
goals in order to gather and analyze data efficiently and effectively so they
may extract true value from this wealth of information.
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SOLUTIONSDEMOS AND VIDEOSKNOWLEDGE CENTERREQUEST A DEMOABOUT

US
NEWS HOW ARE TELECOMS USING CUSTOMER DATA?

How Are Telecoms Using Customer

Data?
By: Anna Papachristos
1to1 Media
Feb. 02, 2015

http://www.1to1media.com/view.aspx?docid=35220

Discover which data points telecom companies are collecting and how
they're using this consumer insight to enhance experience, improve
relationships, and reduce churn.
Telecommunications companies have been gathering customer data for
decades, but the recent interest in Big Data continues to draw considerable
attention to customer data collection processes. Not only are customers
concerned about the 'how'—the ways in which such information is gathered—
but also, the 'what'—which data points are being tracked and for what
purpose.
No matter the industry, data security weighs heavily on both the company and
the customer, as breaches remain one of the biggest threats to consumer
safety and satisfaction. Thus, it's important to maintain transparent data
collection strategies in order to retain trust and loyalty. Customers are well
aware that telecom brands collect information for billing purposes, but as such
methods become more granular, all such companies must offer clear privacy
policies and opt-out capabilities for those consumers who wish to control their
personal data independently.
On average, says Ryan Pellet, chief strategy officer at Nexidia,
telecommunications companies collect four general types of data:
1. Data about the customer—For existing customers, two-thirds of this
information comes directly from the given company, while one-third comes
from third-party data organizations that gather insights, such as credit ratings
and household demographics. Prospect data, however, comes from third-
party sources entirely. Brands have also started to embrace social media data
in an effort to understand consumer interests and behaviors and develop
wellrounded, targeted profiles.
2. Data about the customer's usage—Tracked via telemetry, usage data
focuses on the who, what, where, and how behind consumer behaviors.
Companies gather insights into the duration of usage activities, how often this
set of behaviors occurred, and if a company's interactions with a customer
based on this information worked. Unfortunately, however, much of this usage
information gets tossed aside, while the crucial data points are used to
calculate billing costs. Unused data, conversely, offers insight into potential
improvements.
3. Data that ties usage to rating and billing—Generated by the product and
marketing teams, this information determines how much consumers should be
charged for making calls or using data. Because consumers are increasingly
quick to switch providers, companies must constantly look for new ways to
differentiate their services, retain current customers, and recognize their
values. Thus, companies must employ competitive intelligence to curb churn
and maintain appeal.
4. Data about customer interactions with the company—Customer interaction
information comes from any and all brand interactions consumers have had
with the organization throughout their journeys. From phone calls, to email or
social media conversations, this data is also the largest non-monetized
dataasset for most telecom companies. Brands must listen to this feedback by
creating listening posts that will enable them to assess what's right or wrong
and the competitive landscape.
Before diving into this incoming data, of course, telecom companies must
determine which points will be most valuable for strategic business planning
and development. Rebecca Sendel, senior director, product management at
TM Forum, says that, to determine which relevant data points should be
collected and analyzed, telecom companies must begin with the end goal in
mind. Brands must consider the problems they are trying to solve and what
they're trying to improve by collecting data. Such thinking must be at the core
of data collection, as data just for the sake of data serves no purpose. This
data should also help to expose areas for improvement, monitor success, and
establish priorities to ensure the most valuable consumers are receiving
optimal service no matter their interaction channel. External data, specifically,
can reveal what kind of services customers would like to have so the company
may better target or alter their marketing practices to define and personalize
upsell offers according to customer behavior.
"To provide real-time, personalized, and appropriate offers to improve
customer engagement, telecom operators require a holistic, contextual
understanding of their individual subscribers' usage patterns, behaviors, and
circumstances, such as location and influencer circles, in order to fully
maximize their business opportunities, says Mikko Jarva, CTO, Intelligent
Data at Comptel. "Technologies and practices of extracting real-time insights
from the data streams through analysis provide means for telecom operators
 to react more quickly, become more informed, and react in more targeted
ways to changes, opportunities, and threats to their business, enhancing
customer relationships and driving continued loyalty."
Because the amount of data being stored and analyzed continues to expand,
companies now have ample opportunity to deepen customer relationships.
For instance, proactive services, such as rectifying issues before the customer
knows something's wrong or making data plan offers that better fit usage
patterns, not only strengthen loyalty and satisfaction, but such actions also
increase consumers' willingness to share their personal data. Now, companies
can drive actionable recommendations based on these patterns.

One leading telecom company, for example, now leverages usage data to
track the general daily usage of its products and services at the individual
customer level. The brand can detect when individual daily usage isn't in
alignment with the given customer's overall usage patterns, as this may signal
service issues that need to be rectified promptly. Through proactive
investigation, the company can often reveal and remedy issues before the
customer ever becomes aware of the problem. Employees
will then notify the customer of the issue and its resolution, calling their actions
to attention and requiring the customer to confirm their flawless service.
Ultimately, this strategy switches the dynamic, as the company takes
responsibility for monitoring service instead of depending upon the customer
to discover and report any issues. The brand can get ahead of major issues
that may impact long-term customer satisfaction and retention, thereby
delivering uninterrupted, consistent service that differentiates the customer
experience.

With so much data to collect and analyze, it's often difficult for companies to
bring everything to action simultaneously. Thus, telecoms must establish end
goals in order to gather and analyze data efficiently and effectively so they
may extract true value from this wealth of information.
About Us

 News
 Company Profile
 Intellectual Property
 Awards
 Community Involvement
 Privacy Policy
 Terms of Use

Solutions

 Communications
  Financial Services
 Healthcare
 Collections
 Travel

 Technology
 Legal
 Government
 Contact Centers

 All Products
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Other

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 Request a Demo
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ShareThis Copy and Paste
SOLUTIONS DEMOS AND VIDEOS KNOWLEDGE CENTER REQUEST A DEMO ABOUT US
NEWS HOW ARE TELECOMS USING CUSTOMER DATA? How Are Telecoms Using Customer
Data? By: Anna Papachristos 1to1 Media Feb. 02, 2015
http://www.1to1media.com/view.aspx?docid=35220 Discover which data points telecom companies
are collecting and how they're using this consumer insight to enhance experience, improve
relationships, and reduce churn. Telecommunications companies have been gathering customer
data for decades, but the recent interest in Big Data continues to draw considerable attention to
customer data collection processes. Not only are customers concerned about the 'how'—the ways in
which such information is gathered—but also, the 'what'—which data points are being tracked and
for what purpose. No matter the industry, data security weighs heavily on both the company and the
customer, as breaches remain one of the biggest threats to consumer safety and satisfaction. Thus,
it's important to maintain transparent data collection strategies in order to retain trust and loyalty.
Customers are well aware that telecom brands collect information for billing purposes, but as such
methods become more granular, all such companies must offer clear privacy policies and opt-out
capabilities for those consumers who wish to control their personal data independently. On average,
says Ryan Pellet, chief strategy officer at Nexidia, telecommunications companies collect four
general types of data: 1. Data about the customer—For existing customers, two-thirds of this
information comes directly from the given company, while one-third comes from third-party data
organizations that gather insights, such as credit ratings and household demographics. Prospect
data, however, comes from third-party sources entirely. Brands have also started to embrace social
media data in an effort to understand consumer interests and behaviors and develop wellrounded,
targeted profiles. 2. Data about the customer's usage—Tracked via telemetry, usage data focuses
on the who, what, where, and how behind consumer behaviors. Companies gather insights into the
duration of usage activities, how often this set of behaviors occurred, and if a company's interactions
with a customer based on this information worked. Unfortunately, however, much of this usage
information gets tossed aside, while the crucial data points are used to calculate billing costs.
Unused data, conversely, offers insight into potential improvements. 3. Data that ties usage to rating
and billing—Generated by the product and marketing teams, this information determines how much
consumers should be charged for making calls or using data. Because consumers are increasingly
quick to switch providers, companies must constantly look for new ways to differentiate their
services, retain current customers, and recognize their values. Thus, companies must employ
competitive intelligence to curb churn and maintain appeal. 4. Data about customer interactions with
the company—Customer interaction information comes from any and all brand interactions
consumers have had with the organization throughout their journeys. From phone calls, to email or
social media conversations, this data is also the largest non-monetized dataasset for most telecom
companies. Brands must listen to this feedback by creating listening posts that will enable them to
assess what's right or wrong and the competitive landscape. Before diving into this incoming data, of
course, telecom companies must determine which points will be most valuable for strategic business
planning and development. Rebecca Sendel, senior director, product management at TM Forum,
says that, to determine which relevant data points should be collected and analyzed, telecom
companies must begin with the end goal in mind. Brands must consider the problems they are trying
to solve and what they're trying to improve by collecting data. Such thinking must be at the core of
data collection, as data just for the sake of data serves no purpose. This data should also help to
expose areas for improvement, monitor success, and establish priorities to ensure the most valuable
consumers are receiving optimal service no matter their interaction channel. External data,
specifically, can reveal what kind of services customers would like to have so the company may
better target or alter their marketing practices to define and personalize upsell offers according to
customer behavior. "To provide real-time, personalized, and appropriate offers to improve customer
engagement, telecom operators require a holistic, contextual understanding of their individual
subscribers' usage patterns, behaviors, and circumstances, such as location and influencer circles,
in order to fully maximize their business opportunities, says Mikko Jarva, CTO, Intelligent Data at
Comptel. "Technologies and practices of extracting real-time insights from the data streams through
analysis provide means for telecom operators to react more quickly, become more informed, and
react in more targeted ways to changes, opportunities, and threats to their business, enhancing
customer relationships and driving continued loyalty." Because the amount of data being stored and
analyzed continues to expand, companies now have ample opportunity to deepen customer
relationships. For instance, proactive services, such as rectifying issues before the customer knows
something's wrong or making data plan offers that better fit usage patterns, not only strengthen
loyalty and satisfaction, but such actions also increase consumers' willingness to share their
personal data. Now, companies can drive actionable recommendations based on these patterns.
One leading telecom company, for example, now leverages usage data to track the general daily
usage of its products and services at the individual customer level. The brand can detect when
individual daily usage isn't in alignment with the given customer's overall usage patterns, as this may
signal service issues that need to be rectified promptly. Through proactive investigation, the
company can often reveal and remedy issues before the customer ever becomes aware of the
problem. Employees will then notify the customer of the issue and its resolution, calling their actions
to attention and requiring the customer to confirm their flawless service. Ultimately, this strategy
switches the dynamic, as the company takes responsibility for monitoring service instead of
depending upon the customer to discover and report any issues. The brand can get ahead of major
issues that may impact long-term customer satisfaction and retention, thereby delivering
uninterrupted, consistent service that differentiates the customer experience. With so much data to
collect and analyze, it's often difficult for companies to bring everything to action simultaneously.
Thus, telecoms must establish end goals in order to gather and analyze data efficiently and
effectively so they may extract true value from this wealth of information. About Us News Company
Profile Intellectual Property Awards Community Involvement Privacy Policy Terms of Use Solutions
Communications Financial Services Healthcare Collections Travel Technology Legal Government
Contact Centers All Products Services Partners Other Demos and Videos Knowledge Center
Request a Demo Blog Support Careers Contact Us Privacy Policy Terms of Use Visit Us © 2019
Nexidia Inc. All Rights Reserved SOLUTIONS DEMOS AND VIDEOS KNOWLEDGE CENTER
REQUEST A DEMO ABOUT US NEWS HOW ARE TELECOMS USING CUSTOMER DATA? How
Are Telecoms Using Customer Data? By: Anna Papachristos 1to1 Media Feb. 02, 2015
http://www.1to1media.com/view.aspx?docid=35220 Discover which data points telecom companies
are collecting and how they're using this consumer insight to enhance experience, improve
relationships, and reduce churn. Telecommunications companies have been gathering customer
data for decades, but the recent interest in Big Data continues to draw considerable attention to
customer data collection processes. Not only are customers concerned about the 'how'—the ways in
which such information is gathered—but also, the 'what'—which data points are being tracked and
for what purpose. No matter the industry, data security weighs heavily on both the company and the
customer, as breaches remain one of the biggest threats to consumer safety and satisfaction. Thus,
it's important to maintain transparent data collection strategies in order to retain trust and loyalty.
Customers are well aware that telecom brands collect information for billing purposes, but as such
methods become more granular, all such companies must offer clear privacy policies and opt-out
capabilities for those consumers who wish to control their personal data independently. On average,
says Ryan Pellet, chief strategy officer at Nexidia, telecommunications companies collect four
general types of data: 1. Data about the customer—For existing customers, two-thirds of this
information comes directly from the given company, while one-third comes from third-party data
organizations that gather insights, such as credit ratings and household demographics. Prospect
data, however, comes from third-party sources entirely. Brands have also started to embrace social
media data in an effort to understand consumer interests and behaviors and develop wellrounded,
targeted profiles. 2. Data about the customer's usage—Tracked via telemetry, usage data focuses
on the who, what, where, and how behind consumer behaviors. Companies gather insights into the
duration of usage activities, how often this set of behaviors occurred, and if a company's interactions
with a customer based on this information worked. Unfortunately, however, much of this usage
information gets tossed aside, while the crucial data points are used to calculate billing costs.
Unused data, conversely, offers insight into potential improvements. 3. Data that ties usage to rating
and billing—Generated by the product and marketing teams, this information determines how much
consumers should be charged for making calls or using data. Because consumers are increasingly
quick to switch providers, companies must constantly look for new ways to differentiate their
services, retain current customers, and recognize their values. Thus, companies must employ
competitive intelligence to curb churn and maintain appeal. 4. Data about customer interactions with
the company—Customer interaction information comes from any and all brand interactions
consumers have had with the organization throughout their journeys. From phone calls, to email or
social media conversations, this data is also the largest non-monetized dataasset for most telecom
companies. Brands must listen to this feedback by creating listening posts that will enable them to
assess what's right or wrong and the competitive landscape. Before diving into this incoming data, of
course, telecom companies must determine which points will be most valuable for strategic business
planning and development. Rebecca Sendel, senior director, product management at TM Forum,
says that, to determine which relevant data points should be collected and analyzed, telecom
companies must begin with the end goal in mind. Brands must consider the problems they are trying
to solve and what they're trying to improve by collecting data. Such thinking must be at the core of
data collection, as data just for the sake of data serves no purpose. This data should also help to
expose areas for improvement, monitor success, and establish priorities to ensure the most valuable
consumers are receiving optimal service no matter their interaction channel. External data,
specifically, can reveal what kind of services customers would like to have so the company may
better target or alter their marketing practices to define and personalize upsell offers according to
customer behavior. "To provide real-time, personalized, and appropriate offers to improve customer
engagement, telecom operators require a holistic, contextual understanding of their individual
subscribers' usage patterns, behaviors, and circumstances, such as location and influencer circles,
in order to fully maximize their business opportunities, says Mikko Jarva, CTO, Intelligent Data at
Comptel. "Technologies and practices of extracting real-time insights from the data streams through
analysis provide means for telecom operators to react more quickly, become more informed, and
react in more targeted ways to changes, opportunities, and threats to their business, enhancing
customer relationships and driving continued loyalty." Because the amount of data being stored and
analyzed continues to expand, companies now have ample opportunity to deepen customer
relationships. For instance, proactive services, such as rectifying issues before the customer knows
something's wrong or making data plan offers that better fit usage patterns, not only strengthen
loyalty and satisfaction, but such actions also increase consumers' willingness to share their
personal data. Now, companies can drive actionable recommendations based on these patterns.
One leading telecom company, for example, now leverages usage data to track the general daily
usage of its products and services at the individual customer level. The brand can detect when
individual daily usage isn't in alignment with the given customer's overall usage patterns, as this may
signal service issues that need to be rectified promptly. Through proactive investigation, the
company can often reveal and remedy issues before the customer ever becomes aware of the
problem. Employees will then notify the customer of the issue and its resolution, calling their actions
to attention and requiring the customer to confirm their flawless service. Ultimately, this strategy
switches the dynamic, as the company takes responsibility for monitoring service instead of
depending upon the customer to discover and report any issues. The brand can get ahead of major
issues that may impact long-term customer satisfaction and retention, thereby delivering
uninterrupted, consistent service that differentiates the customer experience. With so much data to
collect and analyze, it's often difficult for companies to bring everything to action simultaneously.
Thus, telecoms must establish end goals in order to gather and analyze data efficiently and
effectively so they may extract true value from this wealth of information. About Us News Company
Profile Intellectual Property Awards Community Involvement Privacy Policy Terms of Use Solutions
Communications Financial Services Healthcare Collections Travel Technology Legal Government
Contact Centers All Products Services Partners Other Demos and Videos Knowledge Center
Request a Demo Blog Support Careers Contact Us Privacy Policy Terms of Use Visit Us © 2019
Nexidia Inc. All Rights Reserved ShareThis Copy and Paste

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Customer data management

From Wikipedia, the free encyclopedia

Jump to navigationJump to search

Customer data management (CDM) is the ways in which businesses keep track of
their customer information and survey their customer base in order to obtain feedback. CDM
embraces a range of software or cloud computing applications designed to give large organizations
rapid and efficient access to customer data. Surveys and data can be centrally located and widely
accessible within a company, as opposed to being warehoused in separate departments. CDM
encompasses the collection, analysis, organizing, reporting and sharing of customer information
throughout an organization. Businesses need a thorough understanding of their customers’ needs if
they are to retain and increase their customer base. Efficient CDM solutions provide companies with
the ability to deal instantly with customer issues and obtain immediate feedback. As a
result, customer retention and customer satisfaction can show marked improvement. According to a
study by Aberdeen Group inc.: "Above-average and best-in-class companies... attain greater than
20% annual improvement in retention rates, revenues, data accuracy and partner/customer
satisfaction rates."[1]

Contents

 1Customer data management and cloud computing

 2Uses for management
 3Background
 4See also
 5References

Customer data management and cloud computing[edit]

Cloud computing offers an attractive choice for CDM in many companies due to its accessibility
and cost-effectiveness. Businesses can decide who, within their company, should have the ability to
create, adjust, analyze or share customer information. In December 2010, 52% of Information
Technology (IT) professionals worldwide were deploying, or planning to deploy, cloud
computing;[2] this percentage is far higher in many countries.

Uses for management[edit]

Customer data management

 should provide a cost-effective, user-friendly solution for marketing, research, sales, human
resources and IT departments
 enables companies to create and email online surveys, reports and newsletters
 encompasses and simplifies customer relationship management (CRM) and customer feedback
management (CFM)
 Background[edit]
Customer data management, as a term, was coined in the 1990s, pre-dating the alternative
term enterprise feedback management (EFM). CDM was introduced as a software solution that
would replace earlier disc-based or paper-based surveys and spreadsheet data. Initially, CDM
solutions were marketed to businesses as software, specific to one company, and often to one
department within that company. This was superseded by application service providers (ASPs)
where software was hosted for end user organizations, thus avoiding the necessity for IT
professionals to deploy and support software. However, ASPs with their single-tenancy architecture
were, in turn, superseded by software as a service (SaaS), engineered for multi-tenancy. By 2007
SaaS applications, giving businesses on-demand access to their customer information, were rapidly
gaining popularity compared with ASPs. Cloud computing now includes SaaS and many prominent
CDM providers offer cloud-based applications to their clients.
In recent years, there has been a push away from the term EFM, with many of those working in this
area advocating the slightly updated use of CDM. The return to the term CDM is largely based on
the greater need for clarity around the solutions offered by companies, and on the desire to retire
terminology veering on techno-jargon that customers may have a hard time understanding.[3]

See also[edit]
 Customer privacy
 Privacy law
 Information privacy
 Customer Data Platform

References[edit]
1. ^ Smalltree, Hannah (2006)
2. ^ Cisco.com (December 2010)
3. ^ InSiteSystems.com (December, 2010)
Categories:
 Data management
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Customer Data Management (CDM)

Definition - What does Customer Data Management (CDM)mean?
Customer Data Management (CDM) is a solution mechanism in which an organization's
customer data is collected, managed and analyzed. CDM is geared toward resolving
customer requirements and issues while enhancing customer retention and satisfaction,
allowing an organization to convert customer data into Customer Intelligence (CI).

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Techopedia explains Customer Data Management (CDM)

With CDM, one or more software applications are integrated to facilitate access to
reliable and efficient customer data. Attracting and retaining customers requires a clear
understanding of customer requirements. CDM streamlines customer relationship
management (CRM), marketing and customer feedback management (CFM).
CDM must be tightly integrated across the departments of an organization, including IT,
sales and HR. CDM processes include:

 Categorization: Customer data is classified and subclassified.

 Correction: Collected data is verified for accuracy and consistency. When necessary,
contact details are updated, and duplicate records are removed.
 Enrichment: Incomplete data is collected and completed.
 Collection: Customer data and insight activity is collected via a customer feedback
system or sources, like sales, customer support, surveys, reports, newsletters and other
customer interactions.
 Organization: Customer data is organized and shared throughout an organization.

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Article |

Business Wakes Up to Omnichannel

Measuring Customer Level
Profitability in the Telecom
World
STC adds a customer dimension to EBITDA to get a clearer
picture of customer value.

July 2016 by

Ashwin Cariappa, Manager, TTEC Digital/Peppers & Rogers Group

In today’s hypercompetitive and oversaturated communications landscape, telecom operators are constantly fighting to retain
their most valuable customers and extract value from their existing customer base.
Often companies will define programs and provide preferential treatment to customers they deem to be most valuable based
solely on their spending on products and services. Fi gure 1 highlights why this approach can be deceptive and inaccurate, as
both Customer A and Customer B would be treated the same based on top -line revenue contribution.

The problem is that most operators currently cannot fully understand the profitabilit y of customers on different plans,
subsidies, or with multiple SIM cards. In addition, the profitability of customers is not always clear. This creates difficul ties
when trying to optimize products and services offerings.
Telecom companies tend to calculate their EBITDA at an overall company level. In most cases, the level of depth will at most
stretch down to the operating unit level or in rare cases, department level.
Take a new approach to measure profitability
Saudi Telecom (STC), which operates in the Middle East, India and Africa, recently adopted a granular approach to
understand the exact contribution each customer makes to its bottom line, in order to enhance operations and treatment of its
truly most valuable customers. The approach has been coined Customer Level Earnings Before Interest, Taxes, Depreciation,
and Amortization (CEBITDA).

“Most companies compete by lowering

their prices until the price of the products is lowered to the point that all of the economic profit disappears,” says Luca De
Carli, general manager of Customer Lifecycle Management at STC. “Instead, CEBITDA helps us avoid price wars by
monitoring the market at the most granular level and helps us to make decisions in near -real time to increase customer value
consistently and proactively decrease the number of unprofitable customers.”
The starting point for the work was to identify the various elements to be considered for the model. Figure 2 shows some of
the 120 data elements used to calculate the revenue and costs generated by each customer.
The majority of costs and revenue elements are derived from customers’ incoming and outgoing usage. Inputs were needed
from multiple departments including finance, sales, network, wholesale, cust omer experience, and call center. The Customer
Value Management (CVM) team, part of the Customer Lifecyle Management department, is responsible for integrating the
data and creating the accompanying programs.
For the most part, variable costs are easy to c alculate, as they are directly correlated with customer incoming and outgoing
usage, says Ahmad Hussain, director of Customer Value Management at STC. The main challenge faced during the CEBITDA
calculation phase is the assignment of costs for network elem ents. It requires an understanding of the type of traffic being
transmitted across the network and assignment of costs accordingly.
STC identified three ways to calculate the costs of serving customers and distributing network costs:
1. Consult the books. The simplest method is to determine the total volume of data, minutes, and SMS transmitted over the
network. By then taking the total cost of the network from finance, operators are able to define a unit ratio to calculate co st
per MB, minute, and SMS.
2. Determine technology type costs. A more accurate method tabulates network elements against technology type
(2G/3G/4G) and defines the amortized cost of different network elements. Operators are also able to identify the cost per MB,
minute, and SMS for customers connected through different technology types by mapping the costs associated with each
data/voice traffic route.
3. Understand cell site-level costs. The most accurate approach, given availability of data, is to define the MB, minute, and
SMS rate for each cell site, along with relative backbone infrastructure within the network. This approach provides a more
accurate representation of the cost to serve each customer.
Once customer level profitability was calculated and validated, customers were cat egorized into value-based segments. The
segments provide an accurate indication of each customer’s contribution to STC’s bottom line and will be used in conjunction
with revenue0based value segments to define treatment plans for customers.
With the value calculation and segments in place, STC has begun to define areas of opportunity and use cases to derive
value from the CEBITDA project. The team is in the process of implementing a number of initiatives related to customer
service, product and pricing strategy, customer retention, and loyalty activities.
What success looks like
The aim of the program is to significantly reduce costs per customer while increasing profits with smart planning. By simply
optimizing the cost elements and bringing unprofitable cus tomers to a breakeven point, for example, STC expects to increase
profits by approximately 16 percent. Here is a snapshot of some of the insights created from the CEBITDA program.
CUSTOMER SERVICE:
Within the customer service arena, one of the key objectives is to reduce costs by migrating customers to self -service
channels such as online portals, applications, and kiosks. Identifying which customers to migrate to these channels is a
common challenge among telecom operators. By adopting the CEBITDA approac h, STC can identify exactly which customers
are providing value to the firm and prioritize them for treatment at high cost, more personalized channels. At the same time, it
can continue to move low revenue generators to self -service channels and incentivize all customers to use lower cost
channels to conduct simple transactions that do not require human intervention.
It’s also important that segment treatment plans are created for each CEBITDA value segment. For example, the lowest value
segment will be pushed to digital channels for simple inquiries, while the highest value segment can be served through the
call center.
With current technology, the ability to prioritize high profit customers using an operator’s network is also important.
Customers generating value for the company should be considered a priority when making calls and data sessions, and be
exempted from potentially damaging strategies such as throttling.
PRODUCTS AND PRICING:
Gaining an understanding of customer-level profitability enables a plethora of different views to be created that can be used
to optimize how an operator bundles and prices products and services.
• International callers: The profitability of international callers has always been a hot topic in telecommunications. STC
CEBITDA analysis found that within the prepaid base, the profit percentage between international and regular users was very
similar. However, within the postpaid base there were significantly different figures, with heavy international callers
generating more profit.
• Chat application users: Through the use of surveys, STC identified customers who use different chat services. Combining
these insights with the CEBITDA model enabled the CVM team to understand the value brought by app users. Our insight
highlighted the importance of these customers due to significant revenues brought through their data package purchases.
• Subsidized handset and multi-SIM plans: Postpaid packages offer options for both subsidized devices, as well as multiple
SIMs to share allowances across families. The profitability of customers with one or both of these features was examined.
Results were extremely eye opening and are soon to be utilized by the pricing and product teams to optimize the options
available to customers.
RETENTION AND LOYALTY:
In addition to migrating low-profit customers to alternative channels, we strongly advocate for the expansion of high -value
customer programs to include high-profit customers who may not be within the current program ecosystem. Most pro grams
select customers purely based on revenue contribution. By adding high -profit customers, soft benefits such as priority
treatment and event invitations can build deeper bonds with these customers to retain them. The migration of high -profit
customers into the program and low-profit customers out of the program must be carefully executed so as not to upset
customers and trigger potential unwanted sentiments and churn.
In addition, the current global practice for retention activities uses customer spendi ng to define acceptable dilution levels
when assigning retention offers. The theory is that taking a short -term hit on revenue is advisable to prolong the customer’s
lifetime and revenue contribution. With the cost element introduced by CEBITDA, this activ ity can be further optimized.
These insights will be used to improve the company’s fraud detection activities, optimize its customer portfolios, and reduce
costs, says Hussain. He and De Carli recommend other companies look to customer level profitability as a way to enhance
customer relationships.
“Spend the necessary amount of time to implement the project properly by carefully evaluating and then allocating each cost
and each revenue down to the single customer,” Hussain says. “Start with cross -department alignment based on strategic
goals, and a phased approach based on improving major costs first.”
Conclusion
The bottom line for companies around the world is their bottom line. Profit maximization is a key objective and is linked to the
rewarding of shareholders and employees, and enables investment in enhancements to stay ahead of the curve. Gaining
visibility into customer level profitability provides the best opportunity to make decisions about how to treat different
customers differently to achiev e company objectives.
*Note: STC is a client of Peppers & Rogers Group, a TeleTech company

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15 March 2017

The Value of RPA in the Telecom

Industry
Even though the telecommunications industry is well-established,
providers continue to face unique challenges in delivering innovative
services to their customers. As more and more people turn to telecom
companies to keep them connected with globalized networks, telecom
providers must compete with one another to provide the fastest, most
affordable, and cutting edge services. Yet, many of these companies
are burdened with large volumes of operational processes —
managing data, controlling cost and business efficiency, increasing
business agility, acquiring and retaining talent, developing new
services — that prevent them from focusing on the most critical aspect
of their business: their customers.

As such, the telecom industry is well positioned to take

advantage of innovative automation technologies to help them
address their pain points and streamline their business
operations, ultimately giving them an advantage in a competitive
market. In a 2016 Blueprint Report for Accenture, Horses for
Sources suggests that “Intelligent automation and, in particular,
robotic process automation (RPA) will become deeply integrated into
telecom business processes” within the next two to three years.
The telecom sector is an ideal candidate for the adoption of
process automation technologies, such as RPA. With the process
automation provided by RPA, telecom providers will be able to more
easily manage their back office and deal with large volumes of
repetitive and rules-based operational processes - even so, some
questions do remain when it comes implementation. How would the
technology work for telecom providers, and what results can be
expected from RPA implementation? To answer these questions, let's
examine some of the most common obstacles that the telecom
industry faces and the different ways in which it can benefit from the
implementation of RPA.
Challenges for automation in telecommunications

One of the biggest priorities for the telecom industry is managing the
customer experience, especially since the satisfaction of customers
ultimately drives the success of telecom companies. Ernst &
Young’s Global telecommunication study: navigating the road to
2020 report suggests, that among telecom industry leaders,
“Customer experience management is emphatically the top priority for
[68% of the survey participants]...The drive to put customers front and
center in everything they do is also forcing operators to focus on
agility, efficiency and network quality.”
Yet, precisely because of their rapid growth and high volumes of
processes, telecom providers face challenges that prevent them from
realizing their goal of executing the most streamlined processes and
fully optimizing the customer experience. Three of the greatest
obstacles include:
Low levels of operational agility: Many telecom companies use IT
to automate their back office. However, they rely on multiple
databases, applications, and operating systems running
simultaneously to support operations. Yet, this means that
communication between these platforms often occurs at sub-optimal
levels. What’s more is that many of these operations tend to involve
significant manual intervention, which prevents employees from
spending the needed time interacting with clients and developing
deeper customer relationships.
Inefficient flow of information: Telecom providers must manage
large amounts of data and paperwork on regular basis: from network
providers, engineers, sales representatives, and also customers.
Much of this data is kept in the form of electronic files and often still
physical copies of paperwork. Because there tends to be
inconsistencies in how this data is stored and managed between
departments and office locations, telecom providers often deal with
delays in service delivery to customers and an inability to track
progress of their business activities.
High operating costs and capital expenditures (OPEX and
CAPEX): Cost control can be a challenge for telecom providers to
maintain. Expenses arise from multiple sources: they can include, but
are by no means limited to, maintaining data integrity and security,
employee salaries, marketing and advertisements, software and
hardware costs. Managing these high costs means that not enough
operational effort is put towards improving the customer experience.
RPA as a solution

Despite these obstacles, telecom providers are leveraging RPA

capabilities to reduce costs, improve data communication, and to drive
significant improvements in operational efficiency — allowing them to
boost their customer services. In fact, telecom organizations
deploying RPA find the following results are achievable within a
relatively short time frame:
Higher levels agility and scalability: With a single mouse click,
RPA’s software robotic workforce can be easily sized up or down to
meet demands — with little to no additional cost. Automated
workflows created with RPA software can be replicated or reused
across different business departments and between locations,
meaning that manual work can be taken out of the hands of
employees. As a result, telecom providers can achieve scalability
quickly and easily, which is necessary to respond to permanent
internal growth, growth resulting from an M&A, or to meet temporary
increases and decreases in customer demand.
Improved data communication and transmission: RPA mimics
mouse clicks and keystrokes, meaning that it interacts with the user
interface just like humans do. The technology is non-invasive, can be
implemented alongside existing platforms, and is able to bridge legacy
systems. As a result, RPA is able to remove data gaps between
disparate information sources. And because RPA software robots also
keep track of their actions in a log, employees are able to easily
access any needed data and run internal reviews.
Significant cost reduction: While RPA does have initial
implementation costs, these are typically not significant compared to
the often prohibitive costs that accompany business process
management software (BPMS) or enterprise resource planning (ERP)
implementation. Even more so, one RPA software license can be
used for multiple different processes, be it for a back office task like
data migration or for a customer-facing front office activity. This means
that RPA is able to provide telecom providers with rapid internal cost
reduction and return on investment.
Why RPA suits telecommunications

The operations of telecom providers are varied: database

management, invoice and purchase order processing, IT and
infrastructure services, customer interaction. Because of its
flexible nature, RPA is able to adapt to any scenario, providing
either full automation or optimizing processes that only for allow
partial automation. This means that RPA provides telecom providers
with individualized capabilities. More back-office processes can be
fully automated, whereas many processes involving more complex
reasoning and human interaction, such as developing customer
relationships, can be partially automated.
Regardless of whether tasks are fully or partially automated, RPA can
help to reduce costs, to improve data communication, and to drive
operational efficiency. As a result, telecom providers are able to boost
their own workforce and streamline their operational processes
 internally. While RPA is generally seen as a way for companies to
alleviate employees from the burden of repetitive, high-volume tasks
in the back office, RPA can drive front office improvements for
customers as well. Through its automation capabilities, RPA is
allowing telecom providers to deliver higher quality services and
customer experience.
Contact Us

by Nick Ostdick
TOPICS: RPA, RPA IMPACT, RPA IMPLEMENTATION, TELECOMMUNICATIONS

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