Profitability from Subscriber Acuity

Embracing Behavior-Based Pricing Models

Program Details

Overview
Background
Research
Resources

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Overview

The CMO Council conducted an authority leadership program with HP Enterprise Services, which aims to reveal the value, impact and benefits of leveraging Actionable Customer Intelligence when applied to behavior-based pricing models in the Communications Service Provider (CSP) Sector.

Due to the changing demands of customers, ranging from increased data consumption to a call for a more robust and personalized customer experience, today's Communications Service Providers (CSPs) are pressured to rapidly meet market demands while optimizing revenue and boosting bottom line growth.

"Communications Service Providers must match their offerings with the needs of their customer, yet so often, the market tends to chase competitor models rather than identifying models that leverage their knowledge of their customers behaviors," said Donovan Neale-May, Executive Director of the CMO Council. "Our goal here is to better understand how CSPs are utilizing "big data analytics" around usage patterns, content consumption habits, app activity, value-added services, device preference and mobile service dependencies to formulate Actionable Customer Intelligence to create more personalized, relevant and profitable pricing models and experiences."

Research: Reports

Report

Jan 22, 2013

Profitability From Subscriber Acuity

This study investigates where and how new thinking around data, analytics and the utilization of actionable customer intelligence can further monetize mobile subscribers ... More

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Facts & Stats

The Economist Intelligence Unit asked their survey respondents in a recent study to estimate their data efficiency, and surprisingly, 25% say that vast quantities of data go unused at their company, and 53% use only about half of the data that is of value. Only 22% of respondents say that they are putting nearly all of their data that is of real value to good use. Economist Intelligence Unit

250+ million Americans carry mobile phones-over 80% of the nation's population. CTIA Wireless Association

More than three-quarters of CSPs (80 percent) currently do not have the systems and processes in place to identify and retain customers reaching the end of their contracts. Oracle

In the U.S., 25% of mobile web users browse only on their phones, never using a laptop, tablet, or desktop to access the internet. Mashable

The surge in data use is coming mostly from Android and iPhone owners, who on average are consuming 582MB and 492MB per month, respectively. CNET.com

Teens on average are sending and receiving 60 texts each day, up from 50 in 2009. The increase is being led by older teens ages 14-17, who went from a median of 60 texts a day to a whopping 100 two years later. Mashable

In the third quarter of 2011, teens aged 13-17 used an average of 320 MB of data per month on their phones, up 256% over last year and growing at a rate faster than any other age group. Nielsen

China: 35% of mobile users use mobile internet, accounting to 318 million connected users. Nielsen

India: Time spent on smartphones: 2.5 hours per day per user, less than a quarter on calls and messages, 40% online. Nielsen

Almost half of UK internet users are going online via mobile phone data connections, according to the Office for National Statistics. BBC

Egypt: 33% of those 16-19 used mobile internet for social networking, while only 5% of those 45+ have. Nielsen

U.S consumers use their smartphones to obtain local information, with 90% doing so a level matched only by Japanese consumers, and trailed by those in Germany (85%), France (83%) and the U.K. (81%). Tmcnet.com

53% of American consumers use their smartphones to access search engines at least once a day. Digby.com

The average cellphone customer uses only about a third of "any time minutes" allowed by most wireless plans. The rest are paid for but wasted. LAtimes.com