Last month, Dell Technologies was the recipient of the FutureNet award for Most Innovative Application of AI to enhance Customer Experience, in recognition of a solution deployed by Dell Technologies and ISV partner Cardinality at O2 (Telefonica U.K.).
Network Customer Experience Solution
The solution, which O2 calls Network Customer Experience (NCX), uses machine learning to evaluate patterns in massive volumes of network data and then assign an “NCX score” to every subscriber on O2’s network. The NCX score, in turn, is used by multiple departments within O2 to inform decisions around various business priorities including customer churn reduction, network quality of service improvements, device upgrades and service upsell.
The most exciting aspect of the NCX solution is how it helps O2 achieve the “Holy Grail” of telecom data analytics, which is to correlate network events directly with the experience of individual subscribers. With the ability to stream over 15B real-time events per day, Dell Technologies SP Analytics with Cardinality feeds over 300 network metrics (also known as network KPIs) into its machine learning algorithm. The algorithm, in turn, evaluates the KPIs based on their relative impact on customer satisfaction to generate an individualized NCX score for each active subscriber. O2 spent many months surveying its customers to weight the relative importance of network KPIs and then used the survey results to train the algorithm. The result is that O2 can take the “temperature” of subscribers at any given point in time and take individualized actions to maintain loyalty and improve the customer experience. Among the groups within O2 that utilize NCX insights in day-to-day operations are Network Operations, Marketing, and the CTO Office.
Solution Benefits
The NCX solution offers benefits to telco carriers of all sizes and these benefits can be realized in both revenue gains and cost reductions. Some examples:
◉ A net present value ROI for the overall project of $2M over 2 years for an initial project investment of $4.5M.
◉ Extending that same ROI over 6 years, cashflow generated from the same project could exceed $40M, a significant payback in cost savings and revenue from the initial $4.5M investment.
◉ 15% decrease in the cost of retaining subscribers. The total cost savings will vary from carrier to carrier based on number of subscribers, cost of retention and geographical market saturation.
◉ 20% increase in upsell, increasing total revenues to offset the decline in average revenue per user (ARPU) seen across the industry.
◉ Customer churn can typically be reduced by 1% to 2% over a 6-year period, which can be significant for large carriers with hundreds of thousands of subscribers.
◉ Complementing churn reduction is the number of subscribers that can be added as the result of implementing a project like NCX. Operators with 150,000 or more subscribers can see net new subscriber adds of over 100,000 over that same 6-year period, directly attributable to the insights from data analytics and subsequent actions taken to build the subscriber base.
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