Wednesday, May 27, 2009

The value of mobility insights for mobile operators

The mobility of mobile customers can be calculated from the number of miles travelled by each customer during one month. This mobility information means customers can be segmented according to whether they have high mobility or low mobility.

High mobility customers are those that travel over long distances whilst using their mobile phone, and low mobility customers are those that travel over shorter distances whilst using their mobile phone. The source data for such an analysis is commonly available within existing the mobile operator systems in an accessible format.

Mobility insights can support targetted marketing initiatives for mobile operators. Highly mobile customers are likely to require access to their business and personal information services whilst on the move. Mobile operators can increase ARPU by targetting these customers to receive offers and X-Sell/Up-Sell for high mobility products such as Mobile Broadband and PDAs, and/or more appropriate data tariffs.

Low mobility customers are likely to be focussed on managing family life and ensuring the smooth operation of the household. Mobile operators can increase revenue and intimacy by targetting these customers to recieve offers and X-Sell/Up-Sell for low mobility products such as new ‘home devices’ bundled with online information services including 'shared calendars' and organisers accessible to all the family.

In addition, understanding a customer’s mobility allows the mobile operator to segment its customer base on behavioural characteristics. The mobility information can be passed into data mining models to predict Churn and product X-Sell.

Experience shows that mobile operators have on average been able to increase penetration of high mobility devices (Mobile Broadband and PDAs) by around 10% using mobility insights, and this increase in product holdings has resulted in substantially higher customer loyalty and reduced Churn over a 6 month period.

Mobile operators considering the potential value of mobility insights should also consider the benefits of working with a service provider under a risk/reward commercial arrangement, where the service provider is paid based on the uplift seen by the mobile operator resulting from mobility insights delivered by the service provider.