Insight and
communication
Since deregulation, an incredible number of competitors -
providers of telephone service as well as suppliers of Internet capabilities -
vie for Italian customers' attention. Despite the fact that the Telecom Italia
data warehouse has been live only for a matter of months, the company's project
team has begun already to use insight generated from the system to combat the
ever-increasing field of competition.
Telecom Italia's team plans to continue to gain valuable knowledge
to help in the sales, customer care, marketing, special promotions and
electronic-commerce areas. What is more, the company will analyse data to gain
the insight necessary to increase customer retention, encourage cross-selling,
curb customer attrition and build customer loyalty. Telecom's team will study
customer behaviour, service types, changes in service, effectiveness of
promotions and a host of other factors that impact overall customer satisfaction
and value.
'Having an in-depth understanding of how our customers use the
products and services we offer will help us build very targeted customer loyalty
programs,' says Stefano Trisolini, director
of data management/data warehousing. He continues, 'We'll be able to find out
about what types of competitor offers entice our good customers to defect and
then put plans in place to counter these promotions. It's impossible to place a
value on this capability - in today's competitive market, it's essential to have
a weapon like this one.'
Trisolini does not expect results overnight. Ultimately, he feels
that having actionable information will enable Telecom to measure such things as
how much additional revenue specific promotions net the company, or which
products and customers are more profitable than others. 'We intend to learn a
lot about how to run effective discount campaigns and how to bundle products
while retaining customer profitability,' explains Trisolini. He adds, 'Gaining
such a competitive advantage is only possible through the use of data
warehouses.'
The solution also will help Telecom Italia's team determine
specifics about customer service: for example, key facts such as the number of
times one customer calls for assistance on the same problem. By determining
patterns, changes may be put in place to stop recurring problems.
The data warehouse contains a variety of data about Telecom
Italia: products and services, possible configurations of products and services,
contracts and usage of 25 million customers. This information helps Trisolini
and his team segment customers according to behaviour. Analysing customer
segments provides valuable actionable information about when, how, why, how
much, where and how often customers interact with their products and services of
choice. 'By knowing more about how customers behave, we can determine what they
want,' Trisolini contends. 'Armed with insight, we can offer them the right
products and services at the most appropriate point in our business
relationship.' He adds, 'By providing data-mining capabilities to analysis
experts and to a broader base of business users, we are enabling more people in
our organization to be customer-centric.'
Constructing the warehouse took six months. Today, the Enterprise
Data Warehouse collects data from four data centres; however, Telecom Italia is
developing further warehouse content to support customer profiling. It is
expected that the warehouse eventually will hold between five and ten terabytes
of data. There may be as many as 10,000 people from Telecom Italia and its
subsidiary companies who ultimately rely on the warehouse for information.
A key focus for the Telecom Italia team is now CRM. Sales and
marketing teams will work to better understand details about the behaviours of
the telecom customer base. The company also plans to start a CRM project with
IBM Intelligent Miner for Data, a key data mining tool within the solution. 'The
plan is to continually develop and refine our capabilities in customer
profiling, data mining and general business intelligence,' notes Trisolini. He
concludes, 'We are very focused on the benefits business intelligence technology
brings us and on becoming more in tune with our customers.'