The telecommunications industry is always at the cutting edge of new technology and business advancements. That’s not without its difficulties, though. Today, leaders in the industry have to adapt to keep up with challenges like increased cybersecurity risk, a post-pandemic shift in customer preferences, and more competitive markets.
So what can business leaders in the telecom space do to overcome these challenges and emerge successful on the other side? One of the most important tools in a telecom provider’s arsenal is a strong business intelligence (BI) platform.
What are BI platforms?
Business intelligence platforms allow companies to extract valuable insights from the data they collect. It’s one thing to have access to wide amounts of data, it’s another thing entirely to use that data effectively to improve decision-making within your enterprise. That’s what these platforms are made to do.
BI platforms collect and process data from both internal and external sources. Once collected, they prepare this data for analysis so users can better understand their complex business data. Many of these platforms include data visualization capabilities as well, meaning they can convert the data into visual representations like charts and graphs. Representing the data through visual media helps users notice trends and patterns they might otherwise have missed.
You can also use analytics platforms to create custom reports to share with other team members or stakeholders. The main purpose of BI platforms is to help businesses get more out of their data.
How Telecom Companies Use BI Platforms
While companies in every industry can use business intelligence platforms to great effect, they’re especially impactful in the telecommunications industry. The following are some key ways the telecom leaders use BI platforms to help their businesses:
Networks are at the center of the telecom industry, and optimizing your networks for the best possible performance can keep your company ahead of the competition. Leaders in the telecom industry are starting to turn to business intelligence platforms to help them monitor and optimize network capacity.
By analyzing real-time data about their networks, telecom companies can find highly congested areas, for example, to help plan their network expansion decisions. They can also use this technology to forecast network capacity and plan for situations like possible outages. Another network-optimizing feature of BI platforms is the ability to detect anomalies and assess risk. All the features come together to help telecom companies ensure their networks are reliable, secure, and efficient.
Reducing Customer Churn
The customer churn rate for any company is the percentage of customers who end their contract or choose not to continue purchasing the company’s services during a given period. In the telecom industry, the average churn rate is between 20% and 40%, representing a significant loss of revenue for telecom companies. Increasing your customer retention by even just 5% can greatly boost your profits which is why reducing customer churn is such a significant priority for telecom providers.
Data analytics platforms can help reduce customer churn through predictive analysis. By looking at the historical behavior of customers who stop paying for services, telecom companies can identify churn risks. They can predict when customers might be inclined to stop purchasing their services and take steps to prevent them from doing so. If certain high-value customers go through drops in service performance, for example, the BI platform could point that out and make it easier for the telecom provider to take action to keep their business.
In any industry, companies look to prevent fraud to protect their revenue and keep their businesses safe. Fighting against fraud is a key issue for companies in the telecom industry since the annual cost of telecom fraud is over $30 billion each year. While there are many different strategies for addressing this significant fraud threat, using a comprehensive data analytics platform is one of the best options.
These platforms can help telecom companies detect and prevent costly fraud attacks. They will monitor network traffic and other possible avenues for fraud to look for signs of cybersecurity risks. Advanced analytics can not only identify likely threats, but also propose the best courses of action to address those threats.
Network and system failures may seem like random, unfortunate occurrences, but they often follow similar patterns. An advanced business intelligence platform can pick up on those patterns that you might not have noticed otherwise and predict the failures ahead of time. Through early diagnosis, you can address these issues before they begin to affect your customers. Your operators can also use these insights to plan their maintenance properly.
Improving Marketing Efforts
Broad, unfocused marketing efforts can be very expensive and yield disappointing results. Luckily, telecom companies can use BI platforms to tailor their marketing efforts and make them more successful. These platforms allow companies to gain insights into customer behavior by examining how they use their telecom services.
By looking at data points like service choices, purchase history, and feedback, telecom companies are better equipped to market the right services to the right consumers. They can build personalized offers for customers likely to respond to them and improve their conversion rates.
Business intelligence platforms are powerful tools for enterprises in the telecom industry. Companies can use them in a variety of ways, including reducing customer churn and preventing fraud. When used properly, these platforms allow for better decision-making, increased efficiency, and considerable cost savings. It’s no surprise that more and more telecom leaders are turning to BI platforms to set their businesses up for ongoing success.
If you’re looking for a business intelligence solution for your telecom business, Live Earth is the ideal choice. As an AI-powered platform connected to the industry’s most diversified real-world data set, Live Earth offers telecom companies unprecedented insights. You can use predictive analytics and real-time alerts within the platform to bring your business to new heights. Reach out to our team of data streaming experts to learn more about how Live Earth can help your telecom enterprise.