5+1 csp touch triggers for monetizing customer engagement · csp network data may reveal other...

5+1 CSP Touch Triggers for Monetizing Customer Engagement

Allot MobileTrends Report H2/2015

Executive Summary

Demand for Parental Control is Growing

Malware is on the Rise

SECaaS Offerings by CSPs

ROI and Monetization of SECaaS

Solution Approaches in Parental Control and Anti-Malware

Parental Control Solutions

Additional Benefits of SECaaS

Summary: Security Services as a Value Add Opportunity

Sources

1

2

5

6

8

10

11

12

13

13

Contents

© 2015 Allot Communications. All rights reserved.Allot MobileTrends H2/2015

Executive Summary

In an age when Communication Service Providers (CSPs) are continuously forced

to deal with cut-throat competition, increased network use and declining revenues,

they are able to leverage network data to build and enhance customer engagement

and to monetize the multitude of daily interactions that occur on their own networks.

“There is gold in them thar networks…” 1

In this edition of Allot MobileTrends, we discovered several digital behaviors that

reveal daily “touch points” with the network and can be used to trigger customer

engagement beyond traditional call center and service portal interactions. We

analyzed network usage data to derive daily or weekly digital profiles of customer

behavior and their “touch points” with the network.

Then we segmented users according to their digital profile and used their online

behavior as an effective trigger for customer engagement. This allows us to target

relevant offers for revenue-generating services at the time and in the context when

they have the most potential to elicit a favorable response.

Network data is the source of this capability. CSPs can do the same with the

usage data from their own network. By adding the dimension of daily network

interactions and online behavior to customer analysis, CSPs can discover dynamic

ways to profile users and target relevant offers. In this report we highlight only a few

touch triggers out of the endless possibilities that could be defined. Analysis of specific

CSP network data may reveal other touch triggers for monetizing customer engagement.

Key Findings

• On average, subscribers have 72 daily interactions with the CSP data network (each

with the potential to become a touch trigger).

• Males visit “malware-risky” websites 7.5 times more often than Females, and

Millennials visit 21 times more than Baby Boomers.

• Business Users use mobile hotspots 69% more than the Typical customer profile,

and Millennials do this 45% more than Baby Boomers.

• 45% of Female customers and 38% of Male customers watch mobile video daily.

• 70% of mobile video consumers are light viewers who watch 1-6 clips per day, while

8% are heavy viewers who watch more than 21 clips per day. The majority of heavy

viewers are Males (54%).

The bottom line: As CSPs continue to step into their role as digital lifestyle providers,

business emphasis is shifting from byte-driven data plans to personalized service plans.

By analyzing their customers’ daily interactions with the network, CSPs will be better

equipped to understand user diversity, and to offer relevant services to each customer at

the most opportune moment for uptake.

1 J.Martin, Ohio State University, RFC 1402, January 1993

Allot MobileTrends H2/2015 © 2015 Allot Communications. All rights reserved. 1

When measuring and mapping the digital customer experience, we reveal new and effective ways to trigger customer engagement. CSPs who are able to skillfully leverage the digital experience can enjoy enormous success in enhancing customer satisfaction, reducing churn, and increasing revenue.

The heart of the challenge for CSPs is to match millions of diverse mobile subscribers and their complex set of interests (as exhibited by their online behavior) – with different types of digital services that are relevant to their interests. The ability to make the correct match can pave new ways and open new opportunities for CSPs to engage and interact with their customers. This report shows how it can be done.

Understanding Subscriber DiversityThe key to understanding subscriber diversity and their Touch Triggers is the ability to accurately identify the groupings that represent their perceptions, expectations and behavior. In this realm, it is very important to segment communication customers in light of demographic and usage classifications. In this analysis we found distinct differences between digital Touch Triggers of three groups:

• Males have distinctly different digital Touch Triggers than Females.

• Youth (<14), Millennials (15-25), Generation X (25-60), Baby Boomers (60+) - distinctly differ from one another.

• Business Users vs. the Digitally Hooked - even though both showed very intense network use, the digital Touch Triggers relevant to Business users were different than the Touch Triggers of the Digitally Hooked.

The CSP customer experience can be

defined as the sum of all experiences

customers have over the duration of their

relationship with their service provider.

This includes brand awareness and

perception of the services.

In the mobile communications arena, we separate between two major types of customer experiences; the customer’s service experience and the customer’s digital experience. The former refers to a personal service event. Communication providers engage in millions of service related phone calls about their products or services and must handle each one well. The latter refers to the daily use of their Internet connection to access their favorite sites and content.When asked about customer experience, customers would probably not describe their calls to the service center as a key service to them. However, their ability to access the Internet and enjoy good response time is the key service CSPs deliver.

CSPs who focus solely on the customer’s experience with service calls are missing out on the untapped engagement potential of the digital customer experience.

The digital customer experience is essential to understanding the user perception of your network. On average, users have 72 daily interactions with the CSP data network. Each interaction contributes to the overall perception of the digital customer experience.

It is generally agreed that certain aspects of customer experience cannot be fully controlled and managed by service providers. Subjective factors such as individual perceptions, emotions and behaviors can alter the customer experience.

Furthermore, experience is also a byproduct of diversity in age, gender, and business customers versus consumers.

Introduction

Allot MobileTrends H2/2015 © 2015 Allot Communications. All rights reserved.2

Identifying Key Digital Touch TriggersCustomer engagement requires both top-down judgment-driven evaluations and bottom-up, data-driven analysis. In our report we identified five events that represent key digital Touch Triggers for the mobile

Methodology

subscriber. We also elaborate on what has become some common daily Touch Triggers related to mobile video.

The datasets for this report included a represented and randomly selected data records from hundreds of millions of mobile transactions on a given day, from four Tier 1 global mobile operators around the world, during July 2015.

This dataset included information about anonymized data traffic with URL usages.

The analysis of subscriber behavior identified and created three different profile groups CSPs can engage with:


Touch Triggers

1

4

2

5

3

+1

Risky Sites

OTT File Storage Websites

Competitor Sites

Mobile Hot Spots

Travel Sites

Video Streaming

Type GroupsGender Female

Male

Age Youth (<14), Millennials (15-25), Generation X (25-60) Baby Boomers (60+)

Heavy Users Business Users The Digitally hooked

Findings

Understanding Subscriber Diversity On average, during a given day, subscribers had 72 online transactions in 3 different websites. Based on our browsing profiles, we found that Business Users, Millennials Generation X, Youth and the Digitally Hooked

are the most engaged in digital activities. Furthermore, Males are more engaged in digital transactions than Females (Graphs 1-3). Each transaction is a potential Touch Trigger for engagement.

Graph 1a: Number of Touch Triggers per Day by Group

Graph 2: Categories of Interest and Number of Touch Triggers

Graph 1b: Number of Active Sites per Day by Group


Fem

ale

Mal

e

Yout

h

Mill

enni

als

Gene

ratio

n X

Baby

Boo

mer

s

Busi

ness

Use

rs

Digi

tally

Hoo

ked

The

Typi

cal

66

82

10798

67

57

10293

72

Percent of Typical Subscribers Accessing the Category per Day Daily Touch Triggers

Social Networks News Economic Info. FinanceeCommerceSportsGames

93.6%

38.7%

4.1%8.4% 8.1%

12.1%

1.8%

44

20

74

8

1714

2.6

4.0 4.2 4.0

3.02.5

6.2

4.1

3.1

Fem

ale

Mal

e

Yout

h

Mill

enni

als

Gene

ratio

n X

Baby

Boo

mer

s

Busi

ness

Use

rs

Digi

tally

Hoo

ked

The

Typi

cal

Graph 3: Digital Use of Categories by Groups

99%Female

28%

2%

1%

6%

1%

2%

88%

56%

7%

2%

13%

20%

28%

98%

50%

1%

1%

1%

22%

14%

94%

49%

4%

2%

13%

13%

24%

97%

32%

4%

2%

11%

8%

17%

96%

20%

6%

2%

1%

2%

6%

97%

74%

64%Business Users

Business Users

B.U.

Youth

Male

5%

19%

18%

15%

95%

75%Digitally Hooked

2%

2%

8%12%

13%

94%

39%

4%

2%

10%8%

12%

98 50 1 1 1 22 14

94 49 4 2 13 13 24

97 32 4 2 11 8 17

96 20 6 2 1 2 6

97 74 64 5 19 18 15

95 75 2 2 8 7 13

Social Networks

News

Economic Info.

Finance

eCommerce

Sports

Games

Male YouthFemale Millennials Generation X Baby Boomers

Business Users

Digitally Hooked

The Typical


How different profiles behave at each Touch Trigger, and how these differences can drive targeted offersOur analysis identified events that represent key digital Touch Triggers for mobile subscribers. When reviewing browsing behavior, it was evident that customers were accessing competitor CSP sites (0.75% per day), travel sites (0.65% per day), risky sites (5.9% per day), OTT file storage (7% per day), and mobile hot spots (13% per day), see Graph 4.

Identifying the Key Digital Touch Triggers

In-Depth Insight: Differences Between Demographic Groups and Their Touch Triggers

0.75% 0.65%

5.90%7.00%

13.00%

Competitor Sites Travel Sites Risky Sites OTT File Storage Mobile Hot Spots

the Baby Boomers use video streaming significantly. We learn that security services like content filtering, anti-malware and antivirus, can be very popular with Youth and Generation X. For parents with young boys it would be very beneficial to offer parental control. Furthermore, to Youth and Generation X, CSPs can offer premium video pricing offers, while for the Baby Boomers CSPs can offer mostly package upgrades with attractive video pricing offers.

When comparing heavy users we learn that Business Users significantly use mobile hot spot tethering, travel sites, OTT file storage and video streaming sites, while the Digitally Hooked significantly use video streaming. These findings suggest that for Business Users, CSPs can offer hot spot alternatives like shared data plans, their own file storage offers, and premium video pricing offers, while the Digitally Hooked would benefit from video-centric offers.

The importance of each Touch Trigger was computed on scale 0-1, where 0 equals significantly lower use, and 1 equals significantly higher use by a given group. This behavioral analysis indicates the importance of different customer experiences and potential engagements for a given group.

When comparing Male and Female profiles we learn that Males significantly use mobile hot spots, risky sites and OTT file storage sites, while Females access video streaming and social content. In light of these findings, CSPs can develop unique customer engagement paths for their customers. For example, Males could be offered shared data plans and file storage options, parents can be offered parental control (security services), and for Females, CSPs can offer lifestyle application packages, premium video pricing offers, and new handsets offers.

When comparing between different age profiles we learn that Millennials browse more risky sites, use mobile hot spot tethering and video streaming sites, while

Graph 4: Five Daily Touch Triggers


* Risky sites were identified as those with malware, viruses and phishing that needs to be blocked.

Risky Sites Touch Trigger Males and the Millennials have the most transactions with Risky Sites. Actually, those demographic profiles have a higher potential to respond positively to a security services offering when it is triggered in context. Business People also have higher exposure to malware from risky sites because of their exposure to so many different sites. CSPs should offer security services to these groups, and Business Users in particular are likely to pay for protection from malware, spyware, viruses, etc. (Graph 5)

Linking Profile Groups to Digital ServicesThe following examples show how different mobile subscribers (Millennials, Generation X, the Digitally Hooked, Business Users, etc.) could be matched to mobile services that relate to their interests.

Table 1: Matching Touch Triggers to Engagement Offers

Touch Triggers Engagement Match

1 Risky Sites Engage with security services; anti-malware,anti-virus, content filtering, parental control

2 Competitor Sites Engage with customer retention offers

3 Travel Sites Engage with roaming offers

4 OTT File Storage Websites Engage with CSPs own online storage, backup services and other cloud services

5 Mobile Hot Spots Engage with shared data, multi-device or add-on WiFi packages

+1 Video Streaming Engage with app bundling packages, content bundling, premium video packages

1

Graph 5: Percent of Subscribers with a Risky Site Touch Trigger per Day by Group

2.0%

15.1%

6.47%

12.7%

8.9%

0.6%

6.9%

10.17%

5.90%

Male YouthFemale Millenni-als

Genera-tion X

Baby Boomers

Business Users

The Typical

Digitally Hooked


When armed with relevant data about customers behavior and Risky Sites, CSPs can engage correctly with their subscribers and identify how to minimize their specific security risks. Our

data shows that mobile users are at daily risk from spyware, malware and phishing attacks.

Graph 7a: Daily Security Events by Operating System

Graph 6: Daily Threat Types Detected

In summary:

• Risky Sites are websites that were detected as the source of Malware, Spyware or Phishing.

• 5.9% of subscribers have a daily transaction with risky websites.• Males are 7.5 times more likely to visit a risky website than Females and 2.5 times more

than the Typical subscriber.• Millennials are 21 times more likely to visit a Risky Site than Baby Boomers, and are 2+

times more likely to visit a Risky Site than the Typical subscriber.• To monetize engagement, CSPs can offer security services to protect their subscribers from

malware, spyware or offer Parental Control to parents to protect their children.

40%

55%

5%

Spyware

Malware

Phishing

83%

11%

6%

Android

iOS

Other

38%

61%Spyware

Malware

41%

58%

1%

Spyware

Phishing

Malware

Graph 7b: iOS Security Events

Graph 7c: Android Security Events


Competitor Sites Touch Trigger Our data showed that the Digitally Hooked, Business Users, Millennials Generation X, and Males have the most visits to the websites of their communication provider’s competitors. Actually, those demographic groups should have a higher churn risk score. Specifically, in our analysis, Business Users and the Digitally Hooked have a higher intent to churn. They are constantly looking around for a better deal. (Graph 8).

2

0.72%0.79%

0.63%

0.79%0.73%

0.64%

0.85%

1.18%

0.75%


Genera-tion X

Baby Boomers

Business Users

Digitally Hooked

The Typical

Graph 8: Percentage of Subscribers Visiting Competitor Sites Daily by Group

In summary:

• 1 of 133 subscribers (0.75%) has a daily Touch Trigger with their CSP competitors.

• The Digitally Hooked access CSP competitor websites 57% more than other subscribers.

• Male Millennials are most likely to access competitor websites.

• CSPs should engage by offering retention packages to keep valuable subscribers from leaving the network.


Travel Sites Touch Trigger Our findings reveal that Business Users, Generation X and Males have the most transactions with travel-related websites. These demographic groups are more likely to be interested in roaming offers and thus will be more responsive when they are engaged (Graph 9).

3

0.43%

0.98%

0.07%

0.38%

1.07%

0.73%

1.95%

0.45%0.65%


Genera-tion X

Baby Boomers

Business Users

Digitally Hooked

The Typical

Graph 9: Percentage of Subscribers Visiting Travel Sites Daily by Group

In summary:

• 1 of 150 subscribers (0.65%) has a daily Touch Trigger with travel sites.

• Business Users access travel sites 3 times more than the Typical subscriber.

• Generation X Males also access travel sites significantly more than the Typical user.

• To monetize engagement, CSPs should offer voice and data roaming packages that are relevant to travelers – especially Business Users. Roaming offers can be generic or application-specific (i.e., only for the apps most needed for travel) according to the user’s demographic profile.


OTT File Storage Trigger Business Users and Males use Dropbox and other OTT file storage services more than other demographic groups. It is an untapped opportunity to offer the CSPs’ own file storage alternatives to these customers. (Graph 10).

In summary:

• 7% of subscribers have a daily Touch Trigger with OTT File Storage sites.

• Business Users are using OTT file storage sites 57% more than the average subscriber.

• Males use OTT file storage websites more than females.

• Use of OTT file storage websites is common in all age groups.

• CSP should offer their own file storage solutions (when available) with unique CSP backup services and security service add-ons.

4

Graph 10: OTT File Storage Touch Trigger by Group

7%

9%

6%

8%7%

6%

11%

6%7%


Genera-tion X

Baby Boomers

Business Users

Digitally Hooked

The Typical


Mobile Hot Spots TriggerBusiness Users, Millennials, Youth and Males use mobile hot spots more than the other groups. Successful upsell engagement can be achieved by offering these users a shared data package that potentially eliminates their need to use tethering entirely. (Graph 11).

In summary:

• 13% of subscribers have a daily Touch Trigger using their phone as a mobile hot spot.

• Business Users use their mobile phone as a hot spot 70% more than the Typical subscriber.

• Millennials also use mobile hot spots frequently.

• To monetize engagement, CSPs should offer multi-device plans, shared data plans and WiFi add-ons to the relevant profile groups.

5

Graph 11: Mobile Hot Spots Touch Trigger by Group

11%

16% 15%16%

12% 11%

22%

14%13%


Genera-tion X

Baby Boomers

Business Users

Digitally Hooked

The Typical


Video Streaming Trigger Our analysis shows that video streaming has become a major Touch Trigger with mobile subscribers around the world. Sharing video clips on WhatsApp or Facebook has become as popular as photo sharing. Clips from YouTube are popular for listening to music and for watching movies. Additional enhancements to video streaming use are IP TV and services such as Netflix that have become part of mobile viewing. Business Users, Millennials and the Digitally Hooked have the most transactions with video streaming sites. These customer groups have a higher potential to buy premium QoE packages, app bundles, and premium video content. (Graph 12). On average, 70% of customers watch 1-6 videos a day, 22% watch 6-20 videos a day and 8% watch more than 21 videos a day.

+1

Graph 12: Percent of Subscribers with a Video Streaming Touch Trigger per Day by Group

45%38%

41%

56%

38%44%

62%

52%

43%


Genera-tion X

Baby Boomers

Business Users

Digitally Hooked

The Typical

Graph 13: Number of Daily Video Streaming Touch Triggers Per Day (% of Video Streaming Users)

70%

22%

8%

Light Viewing (1-5)

Medium Viewing (6-20)

Heavy Viewing (21+)


Overall, more Females (45%) than Males (38%) watch mobile video every day. Females tend to be light viewers, with 45% watching 1-5 clips per day. Fewer Males watch video every day, but when they do watch, they typically consume 6 to 21+ video clips in the period of a day.

More and more people watch video on their mobile phones. Our findings show that 43% of the subscribers watch at least one video every day. In the past CSPs encouraged subscribers to upgrade to 4G for a better video-viewing experience. Now that many subscribers have already upgraded to 4G, engaging with them requires other offers that are related to the content they watch. The next step for CSPs is to offer content bundles with OTT content providers or OTT apps.

Further research can be done to understand the profiles of subscribers who watch entire TV shows or movies on their mobile devices versus subscribers who only watch short clips from social media, WhatsApp, YouTube etc.

In summary:

• 43% of subscribers watch at least one video every day.

• Females watch more daily video than Males when looking at transactions however Males are typically heavier video viewer than Females.

• Business Users watch 43% more video and Millennials watch 30% more video than the Typical subscriber.

• To monetize engagement, CSPs should offer video-centric packages including app/content bundling, shared data plans, and other premium packages.

Graph 14a: Video Viewing Touch Triggers by Gender

Graph 14c: Video Viewing Touch Triggers by Heavy Users

Graph 14b: Video Viewing Touch Triggers by Age Group

Light Viewing (1-5)


Heavy Viewing (21+)

Female Male

51%

49%

47%

53%

46%

54%

Light Viewing (1-5)


Heavy Viewing (21+)

52%48% 50% 50%

39%

61%

Business Users Digitally Hooked

Light Viewing (1-5)


Heavy Viewing (21+)

24%25% 25%

26%27%

26%

24%23% 23%

26%

28%

23%

MillennialsYouth Generation XBaby Boomers


The CSP website is very rarely accessed on daily basis by subscribers and this is a clear pain point for CSPs. CSPs find it extremely challenging to trigger engagement and uptake of their own applications and content.

• On average it appears that only 0.7% of subscribers access their CSP website on a daily basis. CSPs would like to have more digital engagement with subscribers in order to promote CSP-brand products and services.

• CSPs engagement solutions at critical subscriber touch points (such as new handset set up, SIM replacement set up, and set up after returning from service center) can lead to better customer satisfaction and higher uptake of service offerings.

• CSPs who implement smart engagement solutions involving their own websites have been successful in increasing the subscriber engagement by about 70% on average (see below).

Engagement with the CSP Website

CSPs Before digital Touch Trigger engagement

programs

After digital Touch Trigger engagement

programs

% Improvement

A 0.70% 1.00% 43%

B 1.20% 2.43% 102%

C 0.70% 1.29% 84%

D 0.85% 1.23% 45%

Average 68.5%

Table 2: Engagement improvement with CSP Websites Engagement programs


Digital Touch Trigger Engagement as a Monetization OpportunityOur findings clearly show that customer engagement can and should target different subscriber profiles. Subscribers have dozens of digital Touch Triggers with their CSP on a daily basis.

• To monetize engagement, mobile operators should engage based on subscriber behavior profiles.

• Relevant behavior profiles can be created by analyzing the network data from the daily transactions of subscribers.

The way to achieve this starts with network data which enables subscriber analytics and continues with contextual and personalized engagement.

CSPs can monetize their daily Touch Triggers by:

• Defining use-cases for engagement.

• Segmenting subscribers by their online behavior and demographic profiles.

• Engaging with subscribers according to their profile and the use-case defined for achieving results (service uptake).

Summary

Operators can monetize engagement!

This report presents eight demographic CSP customer groups (Males, Females / Youth, Millennials, Generation X, Baby Boomers / Business Users, the Digitally Hooked) and 5+1 relevant Touch Triggers which can be a starting point for smart customer engagement between CSPs and their customers. Matching the importance of each Touch Trigger to these different groups reveals new ways to create effective customer engagement.

Not to be overlooked is the frequent and intense use of sites that harbor a security risk and can seriously harm the customer experience and lead to churn. CSPs must protect their customers by offering security solutions like anti-malware, anti-virus and parental control. With this approach CSPs can skillfully manage the digital experience and reap enormous rewards - enhanced customer satisfaction, reduced churn, and increased revenue.

At the heart of the challenge for CSPs is the attempt to match between the diversity of mobile subscribers, and the complexity of mobile digital services and interests. The correct matching can lead and shape how communication providers should interact with their customers and by doing so transform into digital lifestyle providers.


Americas: 300 TradeCenter, Suite 4680, Woburn, MA 01801 USA · Tel: (781) 939-9300 · Toll free: 877-255-6826 · Fax: (781) 939-9393

Europe: NCI – Les Centres d’Affaires Village d’Entreprises ‘Green Side’, 400 Avenue Roumanille, BP309,

06906 Sophia Antipolis Cedex, France · Tel: 33 (0) 4-93-001160 · Fax: 33 (0) 4-93-001165

Asia Pacific: 25 Tai Seng Avenue, #03-03, Scorpio East Building, Singapore 534104 Tel: +65 67490213 Fax: +65 68481015

Japan: 4-2-3-301 Kanda Surugadai, Chiyoda-ku, Tokyo 101-0062 · Tel: 81 (3) 5297-7668 · Fax: 81(3) 5297-7669

Middle East and Africa: 22 Hanagar Street, Industrial Zone B, Hod-Hasharon, 4501317, Israel · Tel: 972 (9) 761-9200 · Fax: 972 (9) 744-3626

www.allot.com [email protected]

About Allot Communications

Allot Communications Ltd. (NASDAQ, TASE: ALLT) empowers service providers to monetize and optimize their networks, enterprises to enhance productivity and consumers to enjoy an always-on digital lifestyle. Allot’s advanced DPI-based broadband solutions identify and leverage network intelligence to analyze, protect, improve and enrich mobile, fixed and cloud service delivery and user experience. Allot’s unique blend of innovative technology, proven know-how and collaborative approach to industry standards and partnerships enables network operators worldwide to elevate their role in the digital lifestyle ecosystem and to open the door to a wealth of new business opportunities.

D26

5041

Rev

1 ©

201

5 Al

lot C

omm

unic

atio

ns, L

td. A

ll rig

hts

rese

rved

. Spe

cific

atio

ns s

ubje

ct to

cha

nge

with

out n

otic

e. A

llot C

omm

unic

atio

ns a

nd th

e Al

lot l

ogo

are

regi

ster

ed tr

adem

arks

of A

llot C

omm

unic

atio

ns. A

ll ot

her b

rand

or p

rodu

ct n

ames

are

trad

emar

ks o

f the

ir re

spec

tive

hold

ers.

Allot MobileTrends ReportH2/2015H1 2014

5+1 csp touch triggers for monetizing customer engagement · csp network data may reveal other...

Documents