REAL-TIME DECISIONING FROM EMAGINE ... decisioning from Emagine International helps a CSP to improve...

Real-time decisioning from Emagine International helps a CSP to improve ARPU

© Analysys Mason Limited 2016

CASE STUDY

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REAL-TIME DECISIONING FROM EMAGINE INTERNATIONAL HELPS A CSP TO IMPROVE ARPU ATUL ARORA



Figure 1: Case study summary highlighting the challenge, solution and benefits

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Deployment of a real-time decisioning solution by a Tier 1 CSP in the MENA region has increased the acceptance rates of new campaigns and uplifted ARPU of the participating subscribers.

The communications service provider (CSP) operates in the Middle East and North Africa (MENA) region. It is the second-largest CSP in the country where it operates and it offers quadruple-play services, including fixed line, broadband and digital TV.

The CSP operates in a saturated market – the growing population (thanks to an influx of expatriates) has an increasing appetite for data services. CSPs compete by launching innovative solutions and services for their subscribers.

The CSP needed to differentiate itself from competition based on customer experience and personalised offerings. It required a solution to help it understand the past usage trends of its subscribers, and recommend personalised offers based on the analysis, in real-time.

It implemented Emagine International’s (Emagine) Dynamic Deals solution, adding it to the recently deployed campaign management platform. Emagine has been working with the CSP to support below-the-line (BTL) and above-the-line (ATL) campaigns.

The project has enabled the CSP to make personalised offers to subscribers in real-time, increasing the ARPU and acceptance rates of its campaigns.

Executive summary

Source: Analysys Mason

§  Reduce churn §  Improve ARPU §  Improve customer experience

§  Personalised offers based on real-time analysis of subscriber’s usage history

§  Improve user experience by serving offers on the channel preferred by the subscribers

§  Doubled acceptance rate of BTL campaigns §  25% uplift in ARPU for subscribers accepting the

suggested offers

Challenge

Solution

Benefits


© Analysys Mason Limited 2016 3

The country in which the CSP operates is highly saturated, with population penetration of mobile SIMs at 203.2% at the end of 2015. It is predominantly a prepaid mobile market, driven by population growth from inflow of expatriates and consumer appetite for dual-SIMs from multiple device ownership (for example, handset and tablets). This has resulted in increased demand for mobile services.

Mobile non-voice service revenue has grown significantly in recent years, driven by the growth in smartphone data usage. However, this growth has not been sufficient to offset the decline in voice service revenue and ARPU. Since the launch of LTE in the market in 2011, the competition has intensified further, with focus on aggressive pricing for low-end tiers, including unlimited data packages. As a result, ARPU has continued to decline.

Historically, the CSP positioned itself with the prepaid-focused expatriate subscriber base. However, its competitor has increasingly challenged its position with innovative solutions and aggressive pricing targeting the prepaid segment. The competitor launched a promotion offering special discounted deals to prepaid customers, based on their past usage trends. Furthermore, its competitor continues to increase its mobile market share, which is having a negative effect on the CSP.

Figure 2: Mobile market share of active SIMs [Source: Analysys Mason, 2016]

The CSP identified several key challenges that it needed to overcome in order to differentiate itself from competition and generate additional revenue. It included:

§  increasing customer loyalty by offering relevant and personalised deals and in a timely manner

§  reaching customers using the most-relevant channels

§  deploying analytics solutions to understand the usage trends of its subscribers, in real-time

§  increase revenue through upsell and cross-sell opportunities.

Business challenge: CSP needed to differentiate itself by offering personalised deals to attract and retain more customers

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2011 2012 2013 2014 2015

Perc

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f act

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SIM

s Competitor

CSP



The CSP realised that it required a solution that would enable it to go to market with offers personalised to its subscribers. These offers would be generated, in real-time, based on the analysis of the subscriber’s usage history.

The operator was looking for a vendor that would be able to offer the following.

§  Analytics: A solution that would include real-time decisioning to recommend a personalised deal to the subscriber.

§  User-experience: Offer a rich user experience to the subscriber, to enable them to easily adopt new service types.

§  Timescale: The project needed to be delivered within a short timescale.

§  Support: Vendor to provide support with managed services and local expertise.

It wanted the vendor to integrate the module and be able to go to market within a timeframe of just 4 weeks. Furthermore, it wanted to use all marketing channels that were being used by the campaign management platform.

In March 2015, Emagine was awarded the contract to deploy its Dynamic Deals solution. The CSP based its selection of Emagine on a numbers of factors, including the following.

§  Positive experience: Emagine, in partnership with another vendor, has deployed its multi-channel campaign management platform (See Figure 3) at the CSP.

§  Support: In addition to the campaign management platform, Emagine has been helping the operator with managed marketing services as well as providing technology support. The vendor has also provided an on-site team to help with the solution as part of the managed service.

§  Business need: The CSP was impressed with Emagine’s ability to align its solution to the business needs and requirements of the CSP.

§  Time-to-market: Emagine was able to deliver the solution in the timeframe required.

Solution approach



Key

Figure 3: Dynamic deals integration architecture [Source: Emagine International, Analysys Mason 2016]

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Implementation details [1]

Analytics & Reporting

Real-time Event Decisioning

Customer Marketing Datamart

Next Best Action

Emagine Adaptive Contextual Marketing

Dynamic Deals

Campaign Management

Customer Loyalty

CSR

IVR

Email

Comms Gateway

USSD

SMS Inbound and outbound channels

Rewards & Bonus Gateway

OCS

Postpaid

ETL

IN

EDW

CRM

Segmentation information

Dynamic Deal

Implemented

Not implemented

Partially implemented



The CSP implemented Emagine’s Dynamic Deals offering. The solution has been deployed as an add-on module to the Campaign Management platform.

§  The Dynamic Deals solution enables service providers to make decisions and launch campaigns based on real-time event triggers. It allows them to communicate personalised offers to the subscriber on the channel of their choice.

§  The solution analyses transactions, in real-time, including customer data records (CDRs to recommend personalised offers to the subscriber.

The implementation of Dynamic Deals was included as part of the deployment of the overall solution. The vendor had a team dedicated to the project who worked together with the team from the CSP and its partner vendor. Emagine was also responsible for engaging with multiple vendors because integrations were required to already-existing systems.

As part of building a simpler and rich user experience, the SMS and USSD channel were used for interaction with the subscriber. The USSD channel was particularly important because it was a preferred engagement channel for a significant number of the CSP’s subscribers.

The CSP measured the success of the implementation using several metrics, including:

§  campaign click-through rate

§  campaign acceptance rate

§  change in the ARPU of current subscribers

The business model for Emagine was a mix of managed services and benefits sharing. This included Emagine providing support to the CSP’s marketing team with campaign planning and launch, including configuration, test and roll-out of new campaigns.

Implementation details [2]



Figure 6: Customer interaction with the USSD interface of the CSP offering [Source: Emagine International]

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Customers’ interaction with the CSP offering via USSD touchpoint

Customer dials *055#

Welcome to *012# deals. Please select your language.

1. English 2. Arabic

Welcome to *012# deals!

1. My Deals 2. Language

Get 10 IDD mins for calls to India for 5 units of currency. 1. Accept 2. Check another offer

Recharge with 20 units of currency and get 8 national mins

1. Accept 2. Check another offer 3. Back

Welcome message and

select language

Option to view deals or change

language

1st daily offer with option to refresh

offer

2nd offer with the option to go back

Request confirmation SMS

Offer activation SMS

10 IDD minutes have been credited to you number. Check *123# for balance.

Dear customer your request has been registered. We will get back to you shortly.



Figure 8: Benefits achieved

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The CSP is using the Dynamic Deals solution as part of the newly launched promotional service. The CSP launched its BTL campaign in May, with the ATL campaign was launched in August.

For the subscriber base that is using the service, initial benefits when compared to previous BTL campaigns indicate the following.

§  The acceptance of the BTL campaigns by subscribers has doubled during this period.

§  35% of the subscribers that accept the campaign go on to purchase the recommended offer. This acceptance rate is 60% for campaigns that are delivered as a result of low balance failures.

§  ARPU has increased by 25% for subscribers who purchase the recommended offer.

Initial benefits indicate an increase in ARPU and acceptance rates of BTL campaigns

Source: Analysys Mason

Subscribers accepting the BTL campaign has more than doubled

Subscribers accepting the BTL campaign

Before Now 2X

25% uplift in ARPU of subscribers making successful purchases

35% subscribers purchase the recommended offer



Further reading

Type Title Author(s) Link

Strategy report

Context-aware marketing systems enable CSPs to generate additional revenue

Atul Arora, Justin van der Lande

www.analysysmason.com/Research/Content/Reports/Context-aware-marketing-Feb2015-RMA14/

Market Share Analytics software systems: worldwide market shares 2015 Justin van der Lande www.analysysmason.com/Research/Content/Reports/analytics-market-shares-Sep2016-RMA14/

Country report Analysys Mason DataHub Analysys Mason www.analysysmason.com/Services/Research/

DataHub/



Atul Arora (Analyst) is a member of Analysys Mason’s Telecoms Software research team, and manages and contributes to the Customer Care, Telecoms Software Forecasts and Telecoms Software Market Shares programmes. His areas of interest include the digitalisation of communications service providers’ (CSPs’) systems, omni-channel customer care and CSPs’ use of social media. Atul has worked on a range of projects for telecoms operators and vendors, which include providing strategic advisory, market assessment and forecast modelling. He holds a bachelor’s degree from Jaypee University (India) and a master’s degree in neuroscience from University College London.

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About the author


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OCTOBER 2016

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