Data mining helps telcos create new revenue stream
Telecom service providers are apparently in a search of new revenue streams, considering flat revenues from voice services and ongoing challenges from the over-the-top players.
While data allows them to monetize their networks and services,data miningand analytics is also enabling them explore more revenue channels and monetize their existing assets.
Hyderabad-based start-up 3Loq is helping the mobile service providers to monetize their SMS assets through its data mining and analytics solution. In addition to that, it helps brands and retailers to reach out potential customers in a cost effective way.
The company tries to bring telecom operators and advertisers on the same platform.
Anirudh Shah, Founder of 3Loq says that telcos possess a lot of data about their customers, which can be analysed to make it relevant for brands and retailers.
According to Shah, telecom operators can monetize this data by sharing with the company, while brands and retailers can reach out to most relevant customers with targeted approach through analysed data.
"We get anonymous transaction data from telcos. The company's ARJUNA targeting engine works by analyzing valuable telecom data, to find hidden patterns in consumer behavior. Then, the engine figures out who is interested in what, when and where. With relevant information, we rope in advertisers to reach out target customers," Shah explains.
Telcos provide data to the company on revenue sharing model. "Our solution maintains privacy of subscribers. In the whole process, we offer various incentives for telcos. Money from retailers is shared by telcos and 3Loq," the founder says.
SMS: Best tool for mobile marketing
Shah believes that SMS is the biggest channel for mobile marketing and offers good revenue potential. However, he says, that DND has been a barrier in the growth of mobile marketing.
Shah, however, feels that bulk SMS has impacted the mobile marketing services.
He says that intelligent advertising adoptions by brands and retailers will help the mobile marketing space in India.
"If we send out intelligent SMS with the help of data mining and analytics done, potential customers can be reached out. Through intelligent advertising through SMS, one on one interaction is possible as well," he adds.
"India is in nascent stages and is set to grow. In the Indian market, the industry hasn't been aware of such analytics-based solution for mobile marketing, hence the traction is very less," Shah says.
According to him, smaller regions can also be tapped through such solutions for mobile marketing. "Cost to enter for retailers and brands is much lesser. We have been providing, the platform free for six months to brands," Shah adds.
The company charges brands and retailers a fee to reach out their customer base as well as find new customers.
Shah informs that bulk SMS and banner ads are the two prevalent modes for mobile marketing in the country. "We see SMS as an important part of our story right now but over time would like to present multiple channels to brands and retailers but still powered by the same powerful insights that we use for targeting SMS now," he says.
Operator deals in Southeast Asia
The company is expected to close deals with a couple of mobile operators and some retailers by the next quarter. The company is primarily targeting Southeast Asia market for its solutions.
The company is in talks with telcos in Sri Lanka, Malaysia, Thailand, Indonesia, Philippines and India. The company has pilots running in Thailand and Malaysia.
The executive said that 3loq is in talks with theIndian telcosand one pilot is in the process of being set up. "We are expected to have 1 operator in each country by coming two quarters. Also, we plan to have a presence with at least 2 operators in each South East Asian country in the next five years," Shah says.
He also says that 3Loq is well set financially for a couple of years and should be able to generate revenues in the second quarter.
3Loq directly competes with Flytxt in the India market and Singtel's Amobee. Google's AdMod also competes with the company directly.