Data Mining for the Wireless Industry

It's not often that you see this Direct Marketing Blog announce new products or services. It's not our 'thing' to try to sell anyone anything (well, at least not here on the blog). But, sometimes, I come across announcements of new marketing solutions that really intrigue me and I feel compelled to share.

And, that's what happened today.

Xtract, a Finland-based firm that provides social advertising intelligence solutions (and also a firm that I'd never even heard of--shame on me) released this announcement just yesterday:
Xtract Social Links™ Now Available in USA, Adds Demographic Prediction.

You know I'm a sucker for data mining! This service offers a new spin on analyzing customer transaction data. Essentially, Xtract's tool combs through wireless carrier network data, and provides insight into each subscribers' personal contacts/phone numbers/people they call often. From the article:

Xtract Social Links turns raw customer data into a vital marketing tool for mobile operators. By analyzing the social networks within large scale mobile communication networks it identifies the underlying social network structures within the subscriber base and the most influential people in the network, which Xtract calls Alpha Users. The result is a completely new layer of customer insight and a tangible tool for increasing the efficiency of targeted marketing and advertising.

The add-on modules combine social network with demographic and behavioral information, providing a Three Dimensional (3D) view of the customers for specific business applications including marketing activities by mobile operators as well as targeting for mobile advertising.

Wow! Any marketer for a wireless carrier should be thrilled to hear about this solution. With the tool, now not only can you analyze your customer-base, but you'll have an understanding of your customers' friends and business colleagues. Think about the opportunities--the opportunity to present targeted offers, the opportunity to expand your customer-base.

And, of course, this insight provides mobile marketers with a wealth of data that can be used to target their ads to the exact right groups of prospects.

The other interesting thing is that the tool can be used to analyze usage of pre-paid customers--formerly customers that the carriers really didn't know much about (since they didn't send them a monthly bill).

Neat!

More on Telecommunications -- AT&T's Success Story

As you know, Suzanne posted yesterday about how some forward-thinking telecommunications companies are marketing themselves more aggressively to keep their customers for the long-term. While it doesn't sound like rocket science, it wasn't so long ago that this just never happened. In the past, it was simply a mind-set of try to bring on as many customers as you lose, and you'll stay even. And, as direct marketers . . . as business-people . . . we know that this is an insane approach!

At the end of her post, Suzanne posed a couple of questions about why the traditional telecommunications giants weren't mentioned in this research and asked for reader comments/opinions.

Well, today, the Washington Post reports that AT&T has just announced a 21.5% gain in the first quarter of 2008. And, this in a time of economic slowdown! The article goes on to report that "The country's largest telecommunications company earned $3.46 billion in the quarter, compared with $2.85 billion in the first quarter of 2007. Revenue rose 6 percent, to $30.74 billion." Um . . . that's "B" for Billion.

Regarding the economic slowdown, CFO Richard G. Lindner said that "apart from some 'softness' in local phone lines, there was little sign of the weakness in the U.S. economy affecting the company.

Hmmm . . . so, the biggest of the traditional telecommunications firms continues to grow in a softening economy to the tune of over 21%. The article doesn't mention AT&T's marketing efforts specifically but it does mention that the growth is definitely spurred on by AT&T Mobility.

Now, Dave from the Motley Fool has his opinion as to why AT&T is so successful. Can you say iPhone? Here are Dave's thoughts, "I see two major trends pushing the wireless-data wave along: broadband-equipped laptops and the Apple iPhone. With corporate types and "prosumers" willing to pay a premium for mobile broadband connectivity, AT&T is capturing high-margin revenue as it rolls out this service across the U.S. And the game-changing iPhone is encouraging more people to browse the Web on a mobile device and buy audio and video media -- again, at a high margin."

It'll be interesting to see if AT&T's strategy of partnering with cool technology players pays off -- as it obviously thus far with Apple. It'll also be interesting to see if due to their intelligent partnering approach if they'll need to do what the other players are doing in terms of their marketing efforts.

From what we can tell, AT&T definitely hit the number 5 key trend in marketing from yesterday's post: "Telecoms use new emerging media channels to reach early adopters." AT&T's partnership with Apple definitely is reaching the early adopters or prosumers (as our friend Dave calls them). And those folks that I've seen who have purchased the iPhone definitely use all of it's functionality -- which equates to more revenue for AT&T.

Direct Marketing for the Telecommunications Industry

This is a topic rather dear to our hearts. Nancy and I both have quite a bit of experience working with telecommunications firms and helping them develop and implement winning marketing programs.

So, when I come across an article that talks about direct marketing for this industry, I get excited (yes, I know I'm a geek). From DM News, Fierce competition among telecom marketers.

The article talks about how deregulation and new technology have made telecom a super competitive marketplace. It talks about the importance of timing and reaching that prospect just when their service plan is about to expire (a tough challenge that we know a thing or two about, by the way!).

The article cites 5 key trends in marketing for telecommunications firms:

1. "Telecoms leverage more online channels to maximize spend." They're relying on consumers doing their own research on the Internet and building an online presence to acquire new customers.
2. "With short contracts, timing of messages is essential."
3. "Many programs are tied to contextual ads and paid search to drive traffic."
4. "Companies are differentiating themselves with aggressive calls to action." In a nutshell, they're serving up great offers, many with a cost/savings focus. The article mentioned that the word "free" is used a lot in telecom advertising.
5. "Telecoms use new emerging media channels to reach early adopters." They're using blogs and social networks as a low-cost way to get their message out to the technology community.
   

The article gives real examples of marketing programs for telecommunications companies. Interesting stuff.

But, here's what I found probably the most interesting about the entire article. Not one example, not one single mention was given to the traditional telecom providers. By traditional, I'm talking about those companies that used to be referred to as the Regional Bell Operating Companies (RBOCs). You know, Verizon, BellSouth, SBC, Qwest, etc. Nor, is giant AT&T mentioned. Not even once.

Those telecom marketers that ARE mentioned include: Vonage, Jajah (a provider of VOIP services), Avaya, Time Warner Telecom and Helio. Hmmm.

So, here are my questions: Do you think that the firms that I'm calling "traditional" simply don't have to put forth innovative marketing because they've locked in market-share?

Or, do you think that the landscape is changing so much that within the next few years, the majority of us will be buying our telecom from different players?

Or, ARE the traditional giants actually putting forth innovative marketing, programs and products and they're just not mentioned in this article?

I'd love to hear opinions, please!