The Role Of Data Analytics In The Telecom Industry
Since its inception, the telecom industry has witnessed tremendous growth. It plays an important role in making our lives easier. With advanced communication methods and enhanced flexibility, the telecom industry gains more customers and creates new revenue streams.
With the rapidly growing digital connectivity, the internet service providers (ISPs) have to deal with large datasets. These databases can allow them better to understand their customers, competitors, industry trends and derive valuable insights for decision making.
To examine these unstructured databases and extract actionable insights from the data, telecom service providers can lean on data analytics. Before going into detail, let’s start with the basics of Data Analytics.
What Is Data Analytics And Its Importance
Data analytics is the process of analyzing, monitoring, and interpreting data. It helps businesses to make important decisions quickly and accurately. Using a solution that will provide data analytics helps a business gain better insights and will generate more profits. Such a system will also enable the internet service providers to stay one step ahead of their competitors and better anticipate their customers’ needs.
With accurate data analytics, businesses can identify their overall performance gaps as well as discover current trends to stay ahead of the competition.
Role Of Data Analytics In The Telecom Industry
Allows Better Use Of Investments
With the help of a data analytics solution, a company can make decisions based on data, not guesswork. The role of data analytics in the telecom industry is to provide each company a unified view of their data across departmental lines. When data streams in from multiple data sources all through the company, the company can take advantage of all its teams’ suggestions to come up with the best solution for every challenge and this allows the better use of investments.
Predict Churn Rate
Real-time data insights can help improve the operations to continuously monitor and manage any drop in service performance, model network behavior, and map future demand.
Data helps in understanding customer preferences and identify issues like churn risk by accurately analyzing millions of network usage patterns and hundreds of data points. According to the report, advanced data analytics can help the telecom industry predict and reduce customer churn by 15%.
As a result, the telecom service providers must use data analytics to develop an efficient model to predict and avoid churning. This will allow you to adjust your services as needed, resulting in a better customer experience.
Data analytics helps the telecom industry to optimize pricing strategy by providing real-time data insights. It creates optimal pricing strategies to make proactive decisions by analyzing customers’ reactions to different pricing strategies, purchase history, and competitor pricing.
The increasing competition in the telecom sector for gaining more subscribers or users creates an urgent need for telecom companies to set optimal prices for their products and services.
Optimizing the pricing strategy based on revenue and profitability will definitely boost sales and profit. As well as helps in gaining more customers, and most importantly, retain loyal customers.
Enhanced network security
Maintaining the subscribers’ trust and protect the authenticity and confidentiality of the network is the point of concern for the telecom industry as they are highly sensitive data.
With real-time data analysis of network traffic data and customer behavior, the telecom service providers can detect the potential attack, discover security threats, and understand where vulnerabilities exist.
Data analytics helps identify inconsistencies in networks by monitoring tons of current and historical data. It prevents unauthorized access and customer information misuse, thereby shielding networks from cyber attacks.
Helps To Offer More Specialized Mobile And Internet Services
All the users are different and their requirements and devices are also different. One of the common trends is the waning popularity of traditional calls as a means of communication, as video conferencing, instant messaging, and other audio-related communication modes have become popular, especially among the younger generation.
With the help of data analytics, telecom providers can identify patterns of users’ usage, which can then be used to create hyper-personalized mobile and internet plans.
For example, service providers used data analytics to recognize the shift in the market. This helps service providers to offer specialized services.
As a telecom service provider, you must require the best data analytics solution to supporting your business as efficiently and effectively as possible. Want your business to touch the sky? Contact us for the demo of our H8 Solution. Request the demo by mailing us on firstname.lastname@example.org.