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20% increase in customer usage

Key highlights

Category

Telecommunications

Location

Headquarters: Madrid, Spain

Solution highlights

  • Modern Data Platform: Cloudera Enterprise
  • Workloads: Operational Database
  • Key Components: Apache Hive, Apache Flume, Apache HBase, Apache Kafka, Apache Spark, Apache Sqoop, Cloudera Manager
  • Databases: MongoDB
  • Data Science Tools: R, Python

Applications supported

  • Marketing
  • Customer Service
  • Service Delivery
  • Recommendations Engine

Data sources

  • CRM
  • Network
  • Financial Systems
  • Call Center Systems
  • Content Consumption Systems (TV portfolio and user information)
  • TV Use

Impact

  • 20 percent increase in customer usage
  • 39 percent decrease in in-store stock of mobile devices, and a 17 percent increase in store sales
  • Double-digit decrease in customer churn rate

Telefónica Spain achieves a 20% increase in customer usage when it deploys a modern data platform from Cloudera.

Telefónica Spain is the leading telecommunications company in Spain, offering voice, data, television, and Internet access to consumers and businesses.

Challenge

Telefónica Spain wants to provide the best quality and customer experience it can, and becoming a data-driven company is central to achieving this goal.

Data is the new gold of the 21st century.

-Carlos Morrás, manager of Innovation, Big Data and Processes in Telefónica Spain

But to gain more customer insight, the organization needed the ability to analyze a wider volume of data, and do so in real time. “If we wanted to handle more than ten billion records a day, the cost was impractical with techniques other than a big data platform,” said Carlos Morrás.

Solution

Telefónica Spain deployed Cloudera's operational database that captures, stores, and analyzes data about customer interactions and customer experiences to help it deliver customized TV content to every customer, accelerate complaint resolution, and optimize store orders, shipments and stock to help minimize inventory while maximizing sales.

The platform ingests data from a variety sources, including the network, customer, financial, call center and product systems.

“Virtually, all data is received in real time, or almost real time, and volumes are very high because we have almost 40 million connections,” said Carlos Morrás. “We’ve realized many technical improvements with the Cloudera platform, including cost reductions, improved performance in data collection, loading, and analysis, and the power to tackle many new projects that we could not have otherwise approached. It has delivered ROI in weeks in some cases.”

Implementation

Currently, the company uses the Cloudera platform to support 16 different big data projects. In determining which use cases to migrate to its new analytic database, company executives always evaluate the overall value that the customer would receive. “Our main focus is first and foremost the impact on the business and the customer experience,” said Carlos Morrás.

Results

Real-time customer insights and the delivery of more customized experiences for TV viewers have helped Telefónica Spain increase customer usage by more than 20 percent. It has also helped decrease customer churn, with a double-digit reduction in the churn rate.

A deeper understanding of customers has also helped the organization deliver more relevant offers for improved up-sell efforts. “We can now offer customers exactly what they want; not what marketing may think interests them, but what really interests them,” said Carlos Morrás.

Additionally, real-time insights into store inventory and sales have helped the company increase store sales by 17 percent, while reducing in-store stock of mobile devices by 39 percent. “This approach delivers radical improvements in understanding our customers and delivering the best recommendations and customer experience. The impact is high for the different use cases,” said Morrás.