Last time, we discussed how the practice of CVM allows service providers to accurately profile its customers and to identify new opportunities to generate value. Despite often having such information available, mobile service providers have typically not capitalised on CVM techniques and have therefore lagged behind peers in other sectors. Worse, mobile service providers have a clear advantage in that they offer real-time services, so there is huge untapped potential to leverage CVM across all dimensions which is missing to many – and often to some of their OTT competitors. In short, mobile service providers may actually have a richer set of data regarding their customers than their competitors.
Mobile service providers are missing out. So, if you are an MNO or an MVNO, what do you need to do to incorporate CVM into your operational and strategic processes? First, it’s important to note that some key capabilities are required to support CVM. These are:
- Business Intelligence
- Customer Segmentation
- Predictive Analytics
- Campaigns Management
Business Intelligence (BI) is necessary to provide MVNOs with the means to analyse the performance of their services, both operationally and financially. With the ability to view subscriber acquisitions, services used, products adopted, resources employed, sales channels used, charges applied, and revenues collected, the service provider obtains a complete view of their business over time.
An additional requirement is the ability to support multiple Customer Segmentation models. These can be used to sub-divide the information available on sales, usage and spend in relation to subscriber categories that help identify specific pockets of opportunity.
An important point that has been made in relation to CVM is that it is not sufficient to rely on a historic perspective of customer behaviour, but that it is also necessary to exploit available technologies to predict future outcomes. This provides the basis on which to target CVM actions where they will have the maximum benefit, while minimising the cost of introducing promotions and delivering offers where they are unlikely to deliver significant returns. Advanced machine learning techniques can be used to enable mobile service providers to predict future as well as to review historic customer activity.
Having identified the optimal commercial targets, the final step in the CVM approach described above is to execute effectively. As with CLM, this means that the MVNO must have the ability to deliver automated, real-time engagement with customers, whether to provide them with information, to promote particular products or packages, or to offer specific rewards and discounts.
We explore each of these pre-requisites in more detail in our White Paper on CVM, which you can download, here.
CVM is going to become an essential tool to enable mobile service providers to compete more effectively by understanding their customers and acting on this information, backed by real-time, contextual triggers. Critical to success is the ability to automate this process and to create work-flows that bring different stimuli and data points together. If you are a mobile service provider, this means you need to understand whether your current platforms can support and enable this transition. If not, you will miss out on a significant opportunity to capture new value.
If you’d like to know more about how you can benefit from a mobile services platform that is real-time at its core, and which offers the business intelligence, predictive analytics and campaign execution capabilities to identify and address specific opportunity targets, making effective CVM a practical and cost-effective reality for MVNOs, then please get in touch.