openet real-time data
TRANSCRIPT
Real-time Data Opening up the $47 billion opportunity: contextual aware real-time offers
Martin Morgan, VP Marketing, Openet BBTM and Big Data Summit, Barcelona, 12th November 2014
2 © Copyright 2014 Openet – Company Confidential For Use Under Non-Disclosure Only
• Real-time – Generation now
• Operator survey results – what’s the impact of using real-time to drive real-time offers
• How does it work?
• Summary
Agenda
3 © Copyright 2014 Openet – Company Confidential For Use Under Non-Disclosure Only
Last of the Analogue Generation
• Most of us of a certain age.
• Most senior management in companies
• Devices had a main single function
Generation Now – under 25s
Generation Now
• Instant gratification of purchases
• Many never known a time without mobile
• Grown up with digital technology
• Smartphones and tablets are the new shops
• Expect and want stuff now and will buy it using technology (smartphones, tablets)
• 2.9 bn people (50% of world’s population) are under 25
4 © Copyright 2014 Openet – Company Confidential For Use Under Non-Disclosure Only
• This represents a significant opportunity for operators
• They have the customer relationships
• They have the opportunity to upsell new products and services (both their own and 3rd parties – e.g. content partners)
• They have the financial relationships with customers – billing, prepaid top ups, direct operator billing
• They have the business intelligence on customer behaviour
• They have the customer context – e.g. location, service being accessed (or tried), customer behaviour – in real-time
Generation Now Wants Stuff Now (aka Real-time)
5 © Copyright 2014 Openet – Company Confidential For Use Under Non-Disclosure Only
• Traditionally offers are not real-time. They depend on either pre-planned/pre-configured schedules, or off-line processing based on historic activity.
• Real-time offer presentation after intelligent offer mapping, and presentation of contextually appropriate offers can increase data revenues
• Also need orchestrated offer provisioning to deliver offers in real-time
Real-time Data – Driving Real-time Offers
6 © Copyright 2014 Openet – Company Confidential For Use Under Non-Disclosure Only
• Combine customer context and real-time data
• Use this to make a real-time offer, that is relevant and timely, to a customer
• Can significantly increase data revenues
• Increase customer satisfaction, reduce customer care costs, increase net promoter score
• Making offers in real-time that are contextually aware - increase relevance to each customer
Real-time Data – Making an Impact on Corporate Performance
7 © Copyright 2014 Openet – Company Confidential For Use Under Non-Disclosure Only
• Openet surveyed 85 mobile operators in October 2014 on the impact of real-time contextually aware offers
The $47 Billion Opportunity
8 © Copyright 2014 Openet – Company Confidential For Use Under Non-Disclosure Only
How Important are Real-Time Offers in Increasing Data Revenue?
9 © Copyright 2014 Openet – Company Confidential For Use Under Non-Disclosure Only
Current Status and Upsell Effectiveness
10 © Copyright 2014 Openet – Company Confidential For Use Under Non-Disclosure Only
What Impact do Operators Forecast?
11 © Copyright 2014 Openet – Company Confidential For Use Under Non-Disclosure Only
Centralizing Offers: Impact on Time of Market
12 © Copyright 2014 Openet – Company Confidential For Use Under Non-Disclosure Only
Centralized Offers – Current Status
13 © Copyright 2014 Openet – Company Confidential For Use Under Non-Disclosure Only
The Context:
• Facebook have amended their app and service in a new update
• The app now includes far more HD video. Users are rushing through their data allowances.
• The operator DPI system is capable of identifying it’s app traffic distinctly.
• In todays traffic reports, Facebook traffic was identified by the operator as having grown dramatically overnight, both in terms of engagement levels and user numbers
Example: New OTT App – Facebook
The Context
14 © Copyright 2014 Openet – Company Confidential For Use Under Non-Disclosure Only
The Service Offer
• The following morning, the IT department added 7 new service pass plans for users of Facebook, based on existing offer packages
• Offers include a simple data allocation increase, an unlimited Facebook option with different timeframes (1, 3, 7 days), and a Facebook with no video option with different timeframes (again 1, 3, 7 days)
• Offers will be trialled with a maximum 100 subscribers each, to determine effectiveness and profitability
New OTT App – Operator Response
Fast Response - Operator Service Offers
The Context
The Service Offer
15 © Copyright 2014 Openet – Company Confidential For Use Under Non-Disclosure Only
The Context Meet Tim.
• Tim is a long time Facebook user, but has limited monthly data consumption. With the change in service, he is now using significantly more data through the Facebook app.
• Tim is a valued, but low ARPU customer. He has a small data balance between now and the end of the month, not enough to consume a lot of video.
• When Tim goes onto Facebook he is presented with an offer for one days unlimited access with HD video for $1.
• This is one of the new service offers.
• Tim accepts, and is instantly notified that he has been granted unlimited access to the service for that day.
New OTT App – The Subscriber
Fast Response - Operator Service Offers
The Service Offer
The Subscriber
16 © Copyright 2014 Openet – Company Confidential For Use Under Non-Disclosure Only
1. Offers can be created, changed and updated very quickly
2. More granular offers mean more tailored upsell, which can be triggered by real-time subscriber activity
3. Once added to the offer catalog, offers will be instantly available to appropriate subscribers
4. Once activated by a subscriber, offers will be provisioned through any necessary BSS components
5. Offer effectiveness can be reported on in real-time, to understand uptake and profitability metrics.
5 Benefits for the Operator
So how was this done?
17 © Copyright 2014 Openet – Company Confidential For Use Under Non-Disclosure Only
• An offer is presented to the subscriber following a trigger event (1), either an inbound subscriber query, or a pre-defined network event (e.g. subscriber accesses Facebook)
• Real-time Offer Manager will decide which offers to present to the subscriber, by first verifying their context (2) across multiple control points.
• If the context is determined suitable (3), one or more offers will be presented to the subscriber (4) and provisioned on acceptance
• Offer analysis (5) can determine new offers, and advise where to refine the existing catalog
Closing the Offer Management Loop
18 © Copyright 2014 Openet – Company Confidential For Use Under Non-Disclosure Only
• Using real-time data to drive marketing and sales offers can:
• Increase upsell rates from 8% to 14%
• Generate an additional 15% data revenues – representing $47bn opportunity to the global mobile market (based on 2014 global service revenue of $1.01 trillion)
• 34% of operators currently have the capability to provide real-time contextual offers
• Significant opportunity here to use real-time data to drive relevant offers to the now generation
• Download Openet’s Operator Survey Research Report: The Revenue Impact of Real-time Contextual Offers – www.openet.com
Conclusion