Operators to gain $4bn by applying analytics

Mobile operators worldwide are set to gain $4 billion a year by 2018 from a significant reduction in churn through the adoption of big data and analytics says Juniper Research.

The report found that the implementation of analytics platforms was enabling operators to anticipate the likelihood of customers to churn, to take preventative action and thereby reduce revenue loss.

MTN South Africa, which in 2012 deployed a big data programme combining subscriber information and social network analysis to determine priority users and customer networks and subsequently saw annualised churn decline by more than 20 percentage points.

“Although the scope for churn reduction varies by country and by operator MNOs (mobile network operators) with high numbers of pre-paid subscribers are likely to realise the greatest benefits,” says Keith Breed from Juniper Research.

“By gaining control of structured & unstructured customer data for the first time, operators in emerging markets can gain far greater consumer insight than was previously the case,” added Breed.

The report also found that, while churn reduction was the primary benefit for operators in emerging markets, players in more developed markets such as C Spire Wireless in the US were increasingly coupling analytics with a customer loyalty programme to improve user retention.

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