This wonderfully crazy (and real) analytics pattern shows what digital up-sell looks like.
It shows the number of Telco products and services purchased through digital channels by customers of a mid-sized service provider who is digitally enabled by AwareX. Up to 120,000 discrete products sold per month via digital channels, the value of this in ARPU is around 86 US cents for each subscriber each year or put another way $8.6M for every 10M subscribers.
You can see the tempo of new product introduction, 15 new products brought to market in 12 months generating incremental revenues, with close to zero cost of sale so impacting the P&L bottom line and balance sheet cash disproportionately positively.
You can also see the life of a new product is fairly consistent at around 2 to 4 months after which it needs to be killed as opposed to the old CSP practice of leaving it in the product catalog until it enjoys a pension! This clearly shows a more dynamic, more energized rollover of fast product implementations and value realization.
It’s crazy that pretty much all CSP’s have 10,000 plus products in their product catalogs when in this digital age a product life cycle might be 4 months at the most instead of years. Radical simplification of the product portfolio seems to be a logical step, with a maximum (as you can see above) of 5 products being offered at any one time to avoid customer confusion whilst maintaining adequate choice to suite individual customer requirements.
Customer choice is extremely relevant and is being achieved through micro-segmentation. This means enabling the matching of customers to products, services and offers. Understanding your customers through real time analytics, micro segmentation, context awareness, A/B testing, push messaging and geofencing combine to offer a truly valuable experience. We regularly see click through rates on promotions and banners to be up to 100X higher than standard advertising industry rates of 0.5% creating a real up-sell business model for the digital service provider.
A killer app that we have delivered for a number of our customers during the current Covid-19 crisis is the ability to digitally pay for someone else’s bill, this has seen huge adoption with growth rates up to 360% week on week, a fast new offering that drives cash flow for the service providers all monitored in real time, and as you see above its fun to monitor as well.
