Working with big data in various companies often takes place in a typical sequence – identification of interesting data, storage in appropriate technologies and subsequent use for internal purposes (mostly campaigning). After sufficient “confidence” in the internal use has been built up companies begin to consider how much of the data’s potential value can be converted into real monetary value. This is the first step on the external big data monetization journey. Initially, this is usually in the form of a tailor-made analysis for each of the major players – large corporations or the state. The pinnacle of this imaginary pyramid of data monetization is a widely-available solution that enables data to tell its story to a wide range of companies and institutions.
1. MARKET LOCATOR IN SLOVAK TELEKOM
At Instarea together with Slovak Telekom (member of Deutsche Telekom), we managed to reach this imaginary pyramid’s peak – we call it Market Locator (www.marketlocator.sk/en). Market Locator unlocked the potential value of big data at Slovak Telekom & enabled access to powerful analysis for diverse companies which can now rely on “hard-data” to profile the population. Companies can use this data, for example, when planning the location of a new branch. But, it also grants companies access to the mass & precision of targeted marketing in the physical world to which companies were used only online. Customers of Market Locator are thus able to deliver marketing content not only to the right person but also the right person in the right place. Slovak Telekom offers their anonymized and aggregated data in a self-service platform and in doing so proves that monetizing data is just as possible in the physical world in a model akin to that of Google Analytics or Google Adwords services online.
The resulting solution Market Locator is a symbiosis of analytics on the one hand and the ability to react to this insight using multi-channel target marketing.
B2B customers of telecommunication operator gain access to analytics presented on heat-maps & reports and targeted campaigns based on a number of attributes such as socio-demographic, mobile hardware and the services used, travel habits, financial responsibility, and many others. It is now also possible to launch location based campaigns, where every potential customer who enters a previously specified location is recorded and can be marketed to. The solution was built to support various communication channels – be it SMS, email, invoice inserts or digital billboards.
2. ROAD TO SUCCESS
Work towards a successful monetization strategy begins with a proper legal & ethical consideration resulting in necessary work in the field of aggregation and anonymization of data. It is essential to work with client data with great caution, not only from the legal point of view but also from a PR perspective. Market Locator is fully GDPR compliant and we are striving for utmost transparency with the customer. In addition to a purely legal point of view, we focused on the PR side and set out to deliver our data-monetization strategy in the telco world on a clear “public good” message.
3. RESULTS AND OPPORTUNITIES
In addition to profitability in the first year and constantly growing revenue (which for smaller companies contributes up to 50% of their respective telco wallet), we managed to show the ability to deliver a multi-provider solution. On the Slovak market, Market Locator is currently operated by three major telco providers, granting the customers access to analytics & targeted marketing covering nearly the entire population with a single solution. Additionally, we have successfully expanded our service into the Czech Republic and Saudi Arabia. Now, we are aiming to create a global solution that eliminates the boundaries in terms of population analytics and targeted marketing. Advanced discussions are currently ongoing in the CE region, Canada or South Africa.
The potential bottom-line impact for a telco with about 2 million customers is about € 2 million per annum in the short term.
4. BE NEXT
Market Locator has global ambitions and is constantly looking for telco partners around the world. Thanks to our business model and the software solution we offer the cooperation are not burdened by huge CAPEX. It is also an existing self-service solution which comes with a comprehensive marketing and sales package which limits OPEX. Typically, thanks to our implementation experience, together with our partners we can achieve a full product launch in less than five months and less than three months for a telco client. Make sure to read more on Market Locator at marketlocator.sk/en and get in touch with us at email@example.com