Finding new sources of revenue is critical for any business, no matter the industry. But, for telcos in an ultra competitive market, finding those new sources of revenue is even more critical since current revenue sources are in decline. Fortune 15 giant Verizon is no exception and since telcos are so data rich, there is a lot of opportunity with the right architecture, analytics solution and the right team delivering insights on data.
“The number one objective of my team is to help Verizon stay relevant to our customers, and we stay relevant to Verizon. I ask every member on my team to stay relevant. With business intelligence we help the business identify new business opportunities or make course corrections to operate the business in a more cost-effective way. We support decision-makers with the most relevant information to improve the competitive advantage of Verizon.” – Grace Hwang, Executive Director of Financial Performance & Analytics, BI
Serving both the CMO and CFO, the Verizon BI team is uniquely positioned to give the marketing vision and sales rigor to produce the most relevant offers for customers and still have the finance perspective to ensure those offers are profitable to the business. The BI team also extends to IT, ensuring that the business gets the most actionable products and services rather than technology focused solutions, assuring the best performance for all three organizations.
With the right people, processes and Teradata Unified Data Architecture™, Verizon is perfectly poised to gain insights and competitive advantage with advanced analytics in four areas.
1. New sources of revenue – The new frontier in data is IoT (Internet of Things) and while defined success has been limited, Verizon knows IoT holds promise. R&D teams use data, analytics and partnerships to continue testing and developing on this front to find new sources of revenue.
2. Core mobile business – Verizon has multiple use cases where advanced analytics have enabled laser accurate churn prediction in their mobile space within 1-2% margin. Recognize this is a $131B company. Using Teradata Aster, teams identify specific patterns in tablet data usage. Looking at the customer journey and combining those insights with the data warehouse, teams identify that 90% of customers are using their tablet on the Verizon network in the first month of their contract, 10% are not.
“In month two what happened to the 10%? What happened to the 90%? We then branch them out and identify what will they look like three months from now? 6 months from now? 9 months? 12 months? 18 months from now? Therefore we can be positioned to advise the business whether we have a high churn risk coming. We also started doing test and learn to find the ways that we can stimulate usage so they do not build up to be a time bomb in the near future.” – Grace Hwang, Executive Director of Financial Performance & Analytics, BI
3. Mobile phone plans – In the past, mobile phones were subsidized payment plans. The monthly statement paid for the service as well as the phone. Now, people are paying for their phone on their own. This gave Verizon a new way of conducting business in a new space. With the analytical environment, Verizon follows the customer’s journey. When do customers churn now with the new plans? When Verizon changes a pricing plan, they know that X% of people are rationale; and thus, some will move up to the new level and some will move down to the new level. And though they don’t have a crystal ball, the advanced analytics are used to detail the risk grid to both marketing and finance.
4. Business efficiencies in supply chain and modern day marketing – Grace Hwang defines ‘modern day marketing’ as the 7 P’s.
- People – understanding your customers and their needs to create the product.
- Place – where your customers shop.
- Product – the item that has been manufactured and is for sale.
- Process – the process of how your customer gets to the shop or the place.
- Pricing – working with promo to get customer’s attention.
- Promo – working with pricing to get customer’s attention
- Physical evidence – the business intelligence that gives insights.
All of these help point to whether or not you are penetrating the market – are you reaching the market in the way you thought? Are you optimal in the offers you have made?
“The Aster and Hadoop environment allow us to explore things we suspect could be the reasons for breakdown in the seven P’s. This goes back to providing the business value to our decision-makers; each step in the seven P’s ought to be able to tell them where there are opportunities for improvement. Oftentimes, you will find that your product offer is the right one, but your pricing failed on you and/or your messages aren’t getting across to the customers or you’re selling in the wrong place. Business intelligence needs to help the business identify where they break down in the food chain. It could be any of the seven P’s, but it is the physical evidence that is going to convince us.” – Grace Hwang, Executive Director of Financial Performance & Analytics, BI
Since 2000, Verizon has depended on data and analytics to build a reliable network, ensure customer satisfaction, and develop products and services. It is their secret weapon for competitive advantage.
“I think Teradata has always been a part of our architecture design; and we continue to seek the best solutions to achieve our business objectives. And we bring in new software that makes sense. We bring in new combination of hardware that will yield the best performance, whether it’s from a storage side or from the runtime perspective. I think Teradata has absolutely been a partner of ours in optimizing our solutions to our problems.” – Grace Hwang, Executive Director of Financial Performance & Analytics, BI
Congratulations to Verizon and the BI team for all your success!