Hunan Telecom selects Teradata Campaign Management System for event-based marketing

BEIJING, USA: Teradata Corp., the world's largest company solely focused on data warehousing and enterprise analytics, announced that Hunan Telecom, a provincial subsidiary of China Telecom, has collaborated with Teradata Professional Services to develop and pilot a customized campaign management system (CMS).

The data warehouse-driven system is used for event-based marketing (EBM), which consists of software-based rules and triggers that digitally detect, analyze and interpret customer activities, transactions, and interactions.

Hunan Telecom has 14 city-level and 93 county-level branches and is the only communications operator in the province that owns an integrated fixed-line network, mobile network, basic network, digital network and data network. The CMS system was built to address increasing market competition, reduce customer churn and increase individual customer value.

Earlier this year, Hengyang Telecom, a unit of Hunan Telecom, launched a successful pilot operation for the Teradata CMS. The system includes a variety of integrated easy-to-operate modules that include customer profiling, marketing planning, campaign execution and marketing evaluation. The Teradata database platform supports CMS with detailed data collection, event-based marketing automation and multi-channel, multi-step marketing.

With the implementation of the project, Hunan Telecom will have fully automated event-based customer list generation, allowing front-line marketers to focus more time on managing and improving marketing campaigns and less time analyzing data. Automated analysis enables marketers to immediately identify relevant products for customers and establish personalized marketing scripts for effective conversations.

Since 2005, Teradata has been helping Hunan Telecom consolidate its many data silos across the business in a move to a centralized data warehousing system shared by all users. The CMS system was completed in 2008 and successfully piloted in 2009 – providing a complete view of all customer data and producing insights that improve marketing.

“Targeting customers and timely contact are the two most crucial factors for successful precision marketing,” said Xiaoming Yang, Enterprise Information Director of Hunan Telecom. “Event-based marketing can precisely target our customers and optimize customer contact -- an efficient tool to address these challenges.”

“Different from traditional marketing approaches, event-based marketing can significantly increase the marketing success rate, as it provides the right customer with the right offer at the right time,” said Jibo Qin, general manager of Hengyang Telecom. “It realizes a truly customer-centered approach and enhances customer experience.”

Using the CMS system in the first 90 days of implementation, Hengyang Telecom’s CDMA (Code Division Multiple Access) business, which had experienced serious customer churn and a sudden drop in business volume, has since reported an excellent 20 percent response rate to its newest offer -– and customer churn is decreasing.

In addition, the company’s new “My e Home” business has experienced a smooth launch as customers renew and upgrade contracts, and the response rate of its new one-time package offer has reached a remarkable 70 percent. Moreover, CMS system analytics revealed the reasons why CDMA business had experienced churn –- and have been shared with other company marketers to take into account for better customer retention strategies in the future.

“Teradata is focused on introducing information solutions that precisely meet the requirements of our customers,” said Simon Yang, Teradata vice president for Greater China. “The Teradata campaign management system for Hunan Telecom is an example of our commitment to delivering custom analytical solutions for enterprise intelligence.

The new marketing system will help Hunan Telecom optimize their customers’ experience. We also believe, with more applications deployed, that Teradata’s data warehouse will play an increasingly important role in the marketing strategies of Hunan Telecom.”