Why don´t you recommend me?
Every time I use Google or Amazon, they become a bit smarter. They know which type of information I search for, which products I like, which messages I write, etc. Afterwards they can find similar users and recommend me products and services I might like.
The usage of data warehouses is common in the telecom domain. However the collective intelligence that is held in them, hardly sees daylight. I will receive the odd call if my profile fits a potential churner. I might even get notified about a new tariff. But this is where it normally stops.
Why are telecom operators not replicating what made the Amazon´s and Google´s big: collective intelligence? You can easily cluster users, categorize their behavior, help them search what they need, recommend them services they might want, etc.
Let´s take an easy example: tariff plans.
They come in all colors and sizes, change frequently and have direct impact on my happiness. So why don´t I get a recommendation like:
Similar users of our services:
- subscribed to the 500Mb data plan (73%)
- added the “call-for-free-in-the-weekend” option (65%)
- removed the 300 free SMS option (43%)
Even better would be:
Based on your last 3 months behavior and the behavior of users similar to you, you can save €21/month if you change your tariff plan from “expensive-tariff-A” to “cheap-tariff-B”.
Yes of course the operators would be loosing all the money they are overcharging. So in order to avoid lowering ARPU how can we use collective intelligence to increase sales or create new customized services?
“Congratulations with your new iPhone. Other users that purchased an iPhone also:
- subscribed to visual voicemail (54%)
- contracted a theft insurance (39%)
“We have noticed that you call these 5 persons most frequently. Two of them are not a user of our services. You would save €5.43/month if they would join our services. Additionally for €3/month you would be able to call these 5 persons unlimited.”
All my examples are too complex to handle technology-wise? I don´t think they are more complex than what Google, Facebook and Amazon are doing. You just need to make sure you use their technology…