Messaging Intelligence

Transcription

1 Messaging Intelligence

2 Content Why Messaging Intelligence? Objectives Approach Messaging Value Chain Methodology & Tools Data Sources Results & Examples Benefits Messaging Intelligence - SAS Forum 2006 / Geneva 5/18/2006 Page 2

3 Unisys Delivers Services and Technology Solutions for Secure Business Operations 2005 Customer Revenue $5.759 billion Services $4,789M Technology $970M 36,000 employees worldwide Operating in over 100 countries Services and technology to plan, build, run and monitor business operations where confidence, trust, reliability and managing risk are critical components Messaging Intelligence - SAS Forum 2006 / Geneva 5/18/2006 Page 3

4 Aligned with Clients Business A Consultative Approach Driven by Client Need Go to market by industry Solve needs through a mix of: Industry knowledge Industry portfolio Cross-organizational programs Blend of core competencies CONSULTING SYSTEMS INTEGRATION OUTSOURCING INFRASTRUCTURE TECHNOLOGY Microsoft Solutions Open Source Real-Time Infrastructure Enterprise Security Messaging Intelligence - SAS Forum 2006 / Geneva 5/18/2006 Page 4

5 Credentials Half of all checks written in the world are processed and secured using Unisys solutions Unisys operates the world s largest RFID network for the U.S. military 25 countries, 1500 nodes, thousands of shipments intransit daily 200 airlines worldwide are secured by Unisys solutions and services 7000 emergency calls are handled daily by a Unisys system supporting the London Metropolitan Police government clients have relied on Unisys Unisys partners with 300 justice agencies worldwide to improve public safety and domestic security 150 million subscribers trust in Unisys enhanced services Messaging Intelligence - SAS Forum 2006 / Geneva 5/18/2006 Page 5

6 Sampling of Communications Clients Messaging Intelligence - SAS Forum 2006 / Geneva 5/18/2006 Page 6

7 Messaging Intelligence Analytical CRM approach to identify and activate untapped revenue growth potential from Voice Messaging Services Powered by

8 Voice Messaging is a very successful service Voice messaging has historically been a cash cow in many operators product portfolios #2 revenue earner (AT Kerney) Wake Up Service Call Deposit Empty Call 50% profit margin (AT Kerney) 22% of ARPU (Verizone) Value Added Services VM Revenue Sources VM Rental up to 95% penetration Stimulated Callback Direct Callback VM Retrieval Messaging Intelligence - SAS Forum 2006 / Geneva 5/18/2006 Page 8

9 Voic s hidden revenue Voice National 70% Roaming 12% Direct VM revenue: deposits and retrievals European Mobile Operators generate 20-30% of their overall revenue with Voice Messaging SMS 8% Data 4% Voice Mail 6% Voice Mail SMS Data Full revenue potential of VM rediscovered Voice National Roaming Roaming SMS Voice National VM stimulates other traffic Voice Mail Data Messaging Intelligence - SAS Forum 2006 / Geneva 5/18/2006 Page 9

10 Voice Messaging Services Comprise Enormous Growth Potential Voice Messaging services still have an untapped potential and can increase network operators revenues substantially Telecommunication operators are facing decreasing average revenue per user. Voice Messaging services can provide opportunities to increase penetration, usage and revenues and reduce cost Clients are asking how to improve their voice messaging solutions in order to increase revenue, improve quality and/or reduce cost Typical Client Questions Profitability Profitability of of our our messaging messaging services services is is too too low. low. Can Can you you help help to to optimize? optimize? How can we move our messaging How can we move our messaging services services to to "best "best in class? in class? Why Why is is our our subscriber subscriber base constantly base constantly growing growing but but VM usage VM usage declines? declines? Why Why is is the the rate rate of of active active VM users VM users far far below below our our objectives? objectives? Can Can you you help help us us to to understand customer understand customer behaviour behaviour regarding VM regarding VM usage? usage? How How can can we we predict predict customers with customers with high high propensity propensity for cross/upselling for cross/upselling VM VM services? services? Messaging Intelligence - SAS Forum 2006 / Geneva 5/18/2006 Page 10

11 Messaging Intelligence - Unfreezing Hidden Revenues Given the enormous impact of Voice Messaging on operator's revenue, Unisys and SAS developed Messaging Intelligence Messaging Intelligence is a methodology to identify and activate growth potential of messaging services Identifies ratio potential within given Messaging environments Unfolds the potential through tailored strategies and actions Increase Messaging Revenue Increase Marketing Efficiency Increase efficiency of customer relationship management Reduce Messaging Churn Reduce Messaging Process Cost Reduce Marketing Cost Messaging Intelligence - SAS Forum 2006 / Geneva 5/18/2006 Page 11

12 UNISYS & SAS Combining Key Capabilities to develop and provide Messaging Intelligence UNISYS Global Telco Player Messaging Platform Messaging Market Source SAS Institute Market Leader Analytics Telco Expertise End-to-End BI solution Messaging Intelligence - SAS Forum 2006 / Geneva 5/18/2006 Page 12

13 The Approach What is Messaging Intelligence?

14 Holistic & End-to-End Approach Messaging Value Chain Contract Termination Billing Customer Care Messaging Usage Delivery Usage Order Mngmnt Activation Sales / Marketing Pricing Product / Feature Development Segmentation / Positioning Products & Services Business Figures, KPIs, Cycle Times Analyzed People, Organizations, Staffing Domains IT Systems, Applications and Data Bases Messaging Intelligence - SAS Forum 2006 / Geneva 5/18/2006 Page 14

15 The Value of Voice Messaging Transactional Data VM services frequently used by most customers Each interaction with VM operational platform is logged Typically GBs of logging data generated by VM platforms every day Not used for Analytics Operators do not make use of this data other than for operational purposed (e.g Hotline, Billing) purged after 1-2 weeks Valuable Information hidden in Data Giving insights into customer behaviour Contains information about enormous growth potential Can be made actionable for cross/upselling and customer retention Messaging Intelligence - SAS Forum 2006 / Geneva 5/18/2006 Page 15

16 Telecommunication Data Profile Problem of Unsuitable Data Operation Support Systems were not designed to meet analytics requirements the raw data is often not suitable for analytics. Information is not in a form that permits easy interaction - special analyst/reporting skills required Problem of Scale Operational databases may contain billions of records and are amongst the largest in the world. VM Transactional Data must be prepared for analytics to be: Accurate, Timely and Actionable Messaging Intelligence - SAS Forum 2006 / Geneva 5/18/2006 Page 16

17 Business Queries Determine The Required Data Sources KPI / Required Data Source Business Queries and KPIs Messaging Statistical DB Product / Tariff Catalog CRM System Billing System Total number of prepaid subscribers x x Total number of postpaid subscribers x x Messaging subscriber growth per day / month x Average number of incoming messaging calls per month per subscriber x Average number of outgoing messaging calls per month per subscriber x Average length of voic deposit x Mailbox penetration % x Number of active voic users (mailboxes accessed in the last 30 days) x % of mailboxes personalised x Average message length x Hours of voic deposits per day / month x Number of voic deposits per month (prepaid) x x Number of voic deposits per month (postpaid) x x Number of voic retrievals per day (prepaid) x x Number of voic retrievals per day (postpaid) x x Daily revenue for voic retrieval x x Daily revenue for call completion x x Daily revenue for shorts (connect to voic and charged for greeting) x x Messaging ARPU per month (prepaid) x x x x Messaging ARPU per month (postpaid) x x x x Number of calls per day not completed due to 'busy' x Number of stimulated return calls x x MIS System Required Data Sources Messaging Operations Data CRM System Database Order Management System Product Catalogue Billing System Customer Care System Messaging Intelligence - SAS Forum 2006 / Geneva 5/18/2006 Page 17

18 Transforming raw data into actionable behavioral-identifying business information Messaging Operation DBs CRM System Database Customer Care System Raw Data from Operational Systems Analysis & Query List ES7000 Analysis System Marketing Campaigns Business KPI s Product Catalogue Billing System Order Management DB Meta Data Quick Wins Long-term Strategies Messaging Intelligence - SAS Forum 2006 / Geneva 5/18/2006 Page 18

19 Messaging Intelligence Analysis Methods What Will Happen? PREDICT Growth Potential Customer Loyalty Data Mining Advanced Analytics Why Did It Happen? UNDERSTAND Customer Segmentation Product Analysis Time Series & Trends Clustering Reporting What Happened? VISIBILITY Service Usage Key Performance Indicators (KPIs) Subscriber Activity Reporting Dashboard Messaging Intelligence - SAS Forum 2006 / Geneva 5/18/2006 Page 19

20 Typical Analysis Phases Time & Effort 80-90% 10-20% Problem Understanding Data Understanding Data Preparation Reporting & Modelling Evaluation Deployment Determine the objective, define success criteria. Select and clean data, construct new data, and format it. Collect initial data, explore it and verify its quality. Select the modeling technique, generate a test design, build the model and assess it. Generate reports Evaluate results, review the process and determine next steps. Deploy, monitor and maintain the model. Messaging Intelligence - SAS Forum 2006 / Geneva 5/18/2006 Page 20

21 Data Flow VM Platform Session data Event data VM Customer Settings CRM Data Outbound CDR s Unisys Extractor SAS-ETL Studio SAS 4GL Programs Analytical Base Table SAS-Enterprise Guide SAS-Enterprise Miner Up-/Cross- Sell Report 1 Report 2 Report 3 Segmentation &Profiling Retention Model Messaging Intelligence - SAS Forum 2006 / Geneva 5/18/2006 Page 21

22 Business Rational and Results If you can t measure it, you can t manage it Kaplan and Norton

23 Gaining Insights into Messaging Usage and Customer Behaviour View customer's behaviour over time and act on significant changes when intervention is likely to have the most impact Determine typical behaviour and deviations from that behaviour, find buying patterns, behavioural triggers and thresholds in subscriber data and put these insights into behaviour maps Predict customer behaviour before it happens and proactively address changing user states by helping uncover what this behaviour change will mean. Activated Users New Users Engage Basic Users Re-engage Enhanced Users Recognizes opportunities, enables to act instantly to keep or expand subscriber relationships Dead Users Dormant Users Alert when a relationship with a subscriber is changing. For example, a change in behavior might show a subscriber is ready to buy more, or is dissatisfied and ready to churn Messaging Intelligence - SAS Forum 2006 / Geneva 5/18/2006 Page 23

24 Enhanced users generate 5-6x more VM revenue than Basic Users 25 Engage Up-Sell 20 Monthly VM Activity Non Users New Users Basic Users Enhanced Users Calls per Month Deposits Retrievals Empty Calls Callbacks Enhanced Basic New Dormant Non 15,00 10,00 12,02 Dormant Users Reengage Voic ARPU per month SAMPLE Enhanced 3% Non 58% Basic 28% New 2% Dormant 9% 5,00 2,18 2,73 0,44 0,27 0,00 Enhanced Basic New Dormant Non Callbacks 3,85 0,81 0,59 0,21 0,10 Empty Calls 5,91 0,88 1,61 0,05 0,05 Retrievals 0,33 0,13 0,15 0,09 0,07 Deposits 1,93 0,36 0,38 0,09 0,05 ARPU 12,02 2,18 2,73 0,44 0,27 Messaging Intelligence - SAS Forum 2006 / Geneva 5/18/2006 Page 24

25 Messaging Dashboard quickly focus on important variances and exceptions Usage / Segments Sold Activated New User Basic User Enhanced User Dormant User KPI / Segments Youth Professionals SAMPLE Family 60+ Urban Penetration Rate Suburban Active Users Rural Slamdown Rate Teen - Party Personalization Rate Teen - Sport Missed Calls Teen - Academic Return Calls College - Social Deposits College - Atheletics Deposit length Collge - Academics Retriavals Early Professionals Family Not Meeting Objectives In Jeopardy Meeting Objective Growing Declining Messaging Intelligence - SAS Forum 2006 / Geneva 5/18/2006 Page 25

26 Personalized mailboxes generate 3-5 times more VM revenue Monthly Revenue from VM 2,50 2,50 Deposits Deposit calls per user per month 0,8 No Greeting 1,9 Name Greeting 3,9 Personal Greeting Retrieval Calls Retrieval calls per user per month ,4 No Greeting 3,1 Name Greeting 4,3 Personal Greeting 2,00 1,50 1,00 0,50 Callback Empy Call Retrieval Deposit ARPU 0,47 1,26 SAMPLE 2,03 2,00 1,50 1,00 0,50 Empty Calls Empy calls per user per month 5,1 No Greeting 4 Name Greeting 3,1 Personal Greeting Callbacks Callback calls per user per month 2,5 2 1,5 1 0,5 0 0,6 No Greeting 1,7 Name Greeting 2,2 Personal Greeting 0,00 No Greeting Name Greeting Personal Greeting Personal Greeting 33% Name Greeting 2% 0,00 No Greeting 65% Messaging Intelligence - SAS Forum 2006 / Geneva 5/18/2006 Page 26

27 Messaging based Segmentation & Profiling - Input for Cross/Upselling Upsell: Call to VM discount Retrieval delay Revenue Messages stored Messages retrieved Calls to VM SAMPLE Upsell: VM Gold Active caller Listener Thrifty Passive Upsell: Call to VM discount + More messages option Stimulated Callbacks Activate campaign Messaging Intelligence - SAS Forum 2006 / Geneva 5/18/2006 Page 27

28 The Predictive Value of Messaging Non user Dormant User New User Basic User 1. Non users 2. Incoming ignorants 3. Heavy users 4. Empty callers 5. Medium users Enhanced User OB_GPRS_CNT 0,39 1,31 0,26 2,10 4,31 OB_GPRS_IMODE_CNT 0,44 1,45 0,56 2,17 2,14 3 5% Automatic 5 segments 5 10% 4 6% 2 19% 1 60% Non User 65% SAMPLES User state segmentation Basic User 24% Dormant User 8% Enhanced User 3% New User 0% OB_GPRS_CNT 0,56 0,56 5,07 1,62 1,92 OB_GPRS_IMODE_CNT 0,66 0,66 2,54 1,99 2,20 Messaging Intelligence - SAS Forum 2006 / Geneva 5/18/2006 Page 28

29 Integrated Usage of the Analytical Results Customer Segment Churn Churn VM Churn LD X-sell GPRS card John Smith R1 0,2 0,9 0,1 0,9 Barbara Johnson S1 0,1 0,2 0,1 0,3 John Smith GPRS Up-Sell Campaign New products & services Campaign Satisfaction Campaign Retention Campaign Messaging Intelligence - SAS Forum 2006 / Geneva 5/18/2006 Page 29

30 Prediction Models reduce Campaign Contact Cost Same result with 2/5 of contact costs = 60% cost reduction! SAMPLE RANDOM SELECTION Subscriber sample 10% Churn rate 7% ( churners) Subscriber base 100% subscribers Churnrate7% ( churnes) subscribers MODEL SELECTION (lift 2.5) Subscriber sample 4% Churn rate 17.5% ( churners) subscribers Messaging Intelligence - SAS Forum 2006 / Geneva 5/18/2006 Page 30

31 Benchmark Matrix Compare Messaging KPIs with Industry Leaders SAMPLE Customer Segementation Penetration Rate Active Users Slam Down Rate Personalisation Missed Calls 0% 100% YOU Best-in-Class Metric You BiC Segments 5 10 Smallest Seg Biggest Seg Product Development Metric You BiC Product Launchs 5 25 Develop Cycle 6m 3m Cost of develop Customer Care Metric You BiC Call Duration 10min 2min First Hit 20% 80% Messaging calls 30% 5% Messaging Intelligence - SAS Forum 2006 / Geneva 5/18/2006 Page 31

32 Suggests Approved Actions To Activate Hidden VM Revenue SAMPLES Low Callback Rate Compared To Industry Average Low Deposit Rate Short Deposit Messages Low Stimulated Call Rate Recommended actions: change in call-flow of Messaging Application changes in the workflow of the messaging applications can have significant impact on the success of messaging services as the following examples demonstrate: Performed change: Callback/Call Return shuffled to first option after listening to message Operator 1 400% increase in call volumes Operator 2 70% increase in call volumes in week 1 Operator 3 significant increase in call volumes, but more difficult to measure because the callback as first option was introduced for prepaid Recommended action: increase the mailbox personalization rate by marketing campaign because people are more likely to deposit a message if a mailbox is personalized Recommended action: increase personal greeting rate by educating customers because messages are likely to be 12 seconds longer than average if there is a personal greeting Stimulated call rate is under 1%. Recommended action: send caller ID because stimulated call rate rises as people like to know who called them and/or offer special rates for indirect callbacks Messaging Intelligence - SAS Forum 2006 / Geneva 5/18/2006 Page 32

33 What do clients receive? Deliverables KPI Reports Penetration Rates, Active Users, Non-Users Personalization Rates, Empty Calls Averages (deposit rate, retrieval rates etc.) Messaging related revenue sources and ARPUs Understand Subscriber Activity Customer Segmentation & Profiling Competitive Benchmark Time Series & Trends Predict Subscriber Behaviour Messaging Churn What-if Scenario Messaging Intelligence - SAS Forum 2006 / Geneva 5/18/2006 Page 33

34 whom does it help? Addressing the Needs of Different Organizations Product Marketing Increasing Market Fragmentation smaller Customer Segments Dedicated Offering for ever smaller Customer Segments New Services based on customer behaviour Segmentation & Profiling Customer Loyalty / Campaign Management Reducing contact cost Increasing response rates Optimizing the customer contact chain Identifying Customer Value Retention / Reduce churn Service Management Service Performance Management Analyzing Services KPIs Platform Management Analyzing Platform Revenue Delivering regular KPIs (Dashboard) Answering Ad Hoc Queries Messaging Intelligence - SAS Forum 2006 / Geneva 5/18/2006 Page 34

35 Benefits What do you get from Messaging Intelligence?

36 Backing Your Business Objectives Messaging Intelligence improves messaging services Demonstrates the value of your messaging business solution Benchmarks your messaging solution with best-in-class Identifies improvement potentials of your messaging solution Benefit from Strategies to increase messaging revenue - based on an analysis of your own operative data Market proven recommendations from Unisys experts Higher messaging usage, lower messaging churn, successful marketing campaigns and more effective business processes Messaging Intelligence - SAS Forum 2006 / Geneva 5/18/2006 Page 36

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