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Analysis To Telecommunications
Marketing
An introductory whitepaper
Applying Sonamine SNA to Telco Marketing
Introduction
Social network analysis (SNA) uses information about the relationships between customers in order to
make better marketing predictions. Common SNA techniques include finding communities, simulating
word-of-mouth
mouth and influence modeling. Such techniques provide a different view of the vast amount
of data that is captured within companies.
This homophily concept is the basis of the Sonamine algorithms of collective inferencing, network
classification and community detection.
Information
formation spreads through a social network
Another central principle in SNA is the word
word-of-mouth phenomenon.
enon. Whether you call it gossip or
networking or just complaining, people share their experiences with their friends and families. When
people make decisions about purchasing or dining, they rely on the information they received from
their friends. Therefore
refore understanding how information spreads through the social network can
provide insight into what types of decisions that your subscribers will make.
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Applying Sonamine SNA to Telco Marketing
If you think
hink back to the last time you were going
to watch a movie or a new restaurant...very
likely you discussed it with some friends before
making your decision.
This concept of roles is the basis of Sonamine algorithms of cascade scoring, eigenvector centralities
and pagerank.
This concept of stable social networks is the basis of Sonamine algorithms tha
thatt measure vertex
similarity.
Most telecommunications
ecommunications companies already have existing churn prediction systems that use
demographic, usage and calling-plan
plan data to generate subscribers who are likely to churn. Sonamine
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SNA complements these existing churn prediction systems by providing Sonamine SNA variables that can
be used together with the demographic, usage and calling plan data. The benefit is that the prediction
model gets the best results from combining all the available data about subscribers.
By having a more accurate target list of potential churners, your retention campaigns will become
more effective. Not only will you save more potential churners, you will also reduce the “lost
revenue” by offering retention promotions to subscribers who were not going to churn.
Since these spinners would seek out better rates but stay with the telecommunications company, it is
not necessary to send them retention campaigns. By removing these spinners from the retention
campaigns, loyalty managers can improve the effectiveness of their campaigns. The benefits could
come in the form of lower campaign costs and higher save rates.
Sonamine SNA can improve the target list of cross-sell and up-sell campaigns by using the diffusion and
relationship strength modeling algorithms. These algorithms simulate a word-of-mouth regarding the
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Applying Sonamine SNA to Telco Marketing
product being promoted. The target list generated by Sonamine SNA include subscribers who are most
likely to have heard good things about the product through word-of-mouth, and therefore more likely
to respond to the product promotion.
Using both community detection and centrality algorithms, Sonamine SNA can pinpoint the subscribers
who can “get” new subscribers from their social group. Marketers can then design member-get-
member campaigns that target these subscribers. Member-get-member campaigns provide incentives
for the current subscriber to “sign-up” other people in their social group with your company.
Sonamine SNA uses both the centrality and cascade scoring algorithms to identify the influential
members within your subscriber base. These influential subscribers may be different for different
contexts such as video products or handset accessories.
Sonamine SNA allows you augment your existing value segmentation models by identifying such low
ARPU but high network revenue subscribers. These subscribers should be classified into the high value
segment. By highlighting the contribution of and catering to the needs of that these subscribers, you
do not cannibalize your own revenues.
By leveraging the concept that similar people form social groups, Sonamine SNA can estimate the
demographic profiles of your prepaid subscribers. Researchii has shown that these techniques work
well even when only you have less than 10% of post-paid subscribers. You can then use these estimated
demographics in product planning and target list generation.
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Applying Sonamine SNA to Telco Marketing
Sonamine Graph Scoring Engine (SGSE) is a SNA software that you can install and run on a single server.
Depending on the server, the SGSE can support up to 10 million subscribers and 100 million
connections.
Sonamine Graph Analysis Engine (SGAS) is a SNA software that works on distributed servers. The SGAS
can handle unlimited amounts of data. One customer of Sonamine is using SGAS to analyze 150M
subscribers with 15 billion relevant connections.
Sonamine provides outsourced network analysis services. In cases where the customer does not want
to install the software, data can be safely transferred to Sonamine. The results of the analysis are sent
back to the customer.
The final SNA analysis can be stored within the data warehouse in a simple table. Consolidating the
results makes it available for other uses within the company such as fraud detection and customer
service.
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Applying Sonamine SNA to Telco Marketing
For larger subscriber populations, Sonamine offers a proof-of-concept (POC) package that includes data
transfer, analysis and results discussion. These POCs can be completed within 6 weeks. Please contact
us at info@sonamine.com
• Windows XP, Windows Vista and Windows 7, both 32- and 64-bit versions.
• Fedora, CentOS, Redhat Enterprise Linux.
• Amazon EC2 cloud supported including Double Extra Large Instance, Quadruple Extra Large
Instance.
i
The role of (personal) network effects and switching costs in determining mobile users’ choice. Juan
Pablo Maicas, Yolanda Polo, Francisco Javier Sese. Journal of Information Technology (2009) 24, 160–
171.
ii
Classification in Networked Data: A Toolkit and a Univariate Case Study. Sofus A. Macskassy, Foster
Provost. Journal of Machine Learning Research 8 (2007) 935-983.