The end of the year is marked by the celebration of Christmas, New Year resolutions, but for the Communication Service Providers (CSPs), it will be the beginning to predict the technologies and trends in the telecom industry by embracing the magic of predictive analytics. Today, the chief precedence for CSPs is to prevent customer churn to increase customer value and loyalty, which in turn enables wilder progress in revenue and customer experience. Based on the findings, it is said that a company with 5 million customers, experiencing a 2% average monthly churn rate for customers paying an average of US $100 per month, would lose US $1.4 billion each year.
Advanced predictive analytics and predictive modelling, is getting the telecom industry out of a tight spot by retorting to the individual preferences of the customer in a well-timed manner which is analytically important for existence in the vastly competitive telecommunications market. Experts say that implementing predictive analytics in the telecom industry reduces costs and drives efficiency by 59%, identifies and prevents customer churn by 91%, improves relationships with customers by 53%, increases competitiveness by 45%, personalizes customer propositions by 33%, increases overall profitability by 67% after confirming that analytics is directed to the bottom line and delivers value added services to the customers by 36%.
While moving up the analytics value chain, gaining the competitive advantage is the crucial part. When every analytic service provider has the metrics, it is no longer going to be a competitive advantage. But, as we scale up from reporting to predictive modelling, the complexity of the process also goes up.
Looking at metrics is certainly the first step to understand your customer’s behaviour, the next step beyond that is predicting that behaviour to understand what to do next.
Predictive analytics can bring about a significant change in the way various actions are viewed and executed. The key benefits that telecom industry win out of predictive analytics are manifold – from identifying and seizing new opportunities, and risk management, to reducing cost and improving efficiencies. Therefore, the transformation – Predictive Analytics is steadily building the World of tomorrow.