O2 Czech: Creating customer loyalty & new revenue streams with a Unified Data Architecture™

By | December 7, 2015

What industry do you think has been most transformed by data? If you said “Telco” you wouldn’t be alone in your opinion.  Smart Data, Big Data, whatever you call it, the telco industry has embraced it.  But, using data to improve network reliability and retain/acquire new customers is table stakes. If you want to be at the cutting edge of data utilization, it’s all about data monetization!  And that’s exactly what O2 Czech is doing, while creating historically high customer satisfaction.

O2 Czech offers multiple services – internet, voice (both fixed and mobile) and TV. As the leader in the marketplace, O2 Czech disrupts their business and the market by being the first operator to offer unlimited FREE tariffs.  That created a bit a of market revolution. With 40% penetration of smart phones in the Czech Republic, O2 Czech needs to innovate to continue driving mobile data traffic – that data traffic creates opportunity – data monetization!

Stan Kura Chief Data Officer O2 Czech

Stan Kura
Chief Data Officer
O2 Czech

Our team had the opportunity to talk with O2 Czech Chief Data Officer Stan Kura who says O2 Czech is the first company in the world to externally monetize the data in this way.

“Everybody wants to target individual customers and this is where we come in with our product suite. We basically developed a completely unique set of services that help the advertisers target individual customers across multiple media types. Basically, do real cross-media, targeted campaigns for the first time in history.” – Stan Kura, Chief Data Officer, O2 Czech

Focusing on a B2B2C business strategy, O2 Czech used the multiple sources of diverse data (gender, age, home location, work location commuting routes and even hobbies) to help media companies target  customers with precise behavioral profiles.  Ads target consumers on multiple channels, including online banners, direct store, outdoor ads like billboards and SMS. O2 Czech leads the dialogue with the consumer and when the consumer reacts, they get a specific personalized offer. All this creating new revenue.

Teradata platforms, specifically Aster, played a really important role in this. This platform really speeds up the prototyping, and playing with the data and the analytics. Instead of having a team of java programmers that would be programming every little pilot on Hadoop directly, you have a really flexible, fast, and high-performance interface.  In a couple of days, you can have a prototype of what you want to test. In that respect, this was invaluable.” – Stan Kura, Chief Data Officer, O2 Czech

Screen Shot 2015-12-07 at 8.39.48 AMResults were dramatic. In just the SMS channel alone, O2 Czech grew 50% year over year. Very important considering O2 Czech experienced a 25% decline in mobile market voice pricing and a 22% reduction in operating expenses so far in 2015.

 

“This is by far the fastest-growing unit within our company, in an industry that is for many years now, in stagnation and in decline. It was successful.” – Stan Kura, Chief Data Officer, O2 Czech

So how did O2 Czech create historically high customer satisfaction in the declining industry?  Analytics from the Teradata Unified Data Architecture™ give insights into improving systems and processes to build on the benefits enabled by the game changing unlimited tariffs we mentioned above.  All leading to lower numbers in customers’ complaints and negative/repeated calls – improving their experience and satisfaction.

Congratulations to O2 Czech on all your success!

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