Oliver Wyman's Next Best Activity Engine manages the customer base by machine-learning analytics selecting personalized campaigns in all channels.
Oliver Wyman brought an excellent combination of business understanding, data science knowledge and teaming spirit. The initial results (from the commercial engine) are highly promising, and I am totally convinced about the potential of the route we initiated with Oliver Wyman.CMO of a global top 10 telecom company
ContextIn mature telecom markets, economic value is no longer driven by acquisition of new customers; it already lies with the customer base. Operators have managed value capture through price increases in their customer bases, however some of these prices increases are starting to generate churn. Telecom operators need to transform their approach to compete in already mature markets, requiring a shift towards a client-oriented mindset. Operators need to identify what the best course of action is for each client to ultimately maximize profit potential.
Oliver Wyman has developed an engine to enable operators to take a radical, customer-centric approach. The engine leverages advanced machine learning to identify what the best action is to target each client at any given time. The engine integrates with sales channels to operationalize these suggestions, delivering recommendations across sales & customer care platforms, digital channels and point of sales channels. The client-specific approach maximizes value capture and continues to refine its own accuracy as results are fed back into the engine.
Our Next Best Activity (NBA) engine has driven reduction in churn by 5 pps in 12 months. Combined with an advanced customer base management system, the NBA engine has proven revenue impact of 12% increase vs. business as usual despite operating with 29% lower volumes, and improves EBITDA by 2.0-5.0 percentage points.