XO Communications uncovers millions of savings with PureData System for Analytics

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Content Marketing Manager, Emerging Markets, IBM

XO Communications is a nationwide telecommunications provider operating in 85 cities, with representation in around 45 different markets in the United States, and newest expansion in Toronto Canada. The Company is a B2B telecom service provider to large corporations, small and mid-sized businesses, and other telecom carriers over a network comprised of about 1 million miles of metropolitan fibers. The operating subsidiary offers local and long-distance voice, internet, private networking, data transport, and managed services.

Business need: The company needed a system that could process data more quickly and effectively than the existing data warehouse in place. In the intensely competitive telecommunications industry, it costs much less to retain existing customers than to acquire new ones. XO Communications needs ways to identify customers who are at the highest risk of “churn” before switching to another carrier. The goal is to take preventive actions, contacting high-risk customers before they decide to make a change.

Trends in customer data.  The issue of managing vast of amounts of data is not a trend but a reality.  What’s occurring in today’s world is more about complexity. There are also millions of record call data that must be fused with a multitude of other data elements within the organization, such as, (for example, mapping customers to states). All this data needs to be calculated into rating the call accurately to provide an invoice for the customer.

Benefits of the PureData System:

  • With the PureData System for Analytics, XO Communications is able to modify their class structure to real-time. Gaining the ability to analyze faster, XO communications can make necessary adjustments to operations before they even become a problem.
  • PureData System for Analytics has created the opportunity to model their customer base and use that data to predict whether an individual is happy or unhappy customer – to the extent where they can predict whether an individual is unhappy before they have even realized it themselves.
  • With Netezza technology they are able to get this high profile information quicker, recognizing a big reduction in turn savings. In their first year with Netezza technology in place they found over $11 million in savings, subsequently, each time they've revised this model, they've saved more, finding new ways to structure data. Their most recent model predicts around $15 million worth of annual savings, just from having a more efficient and optimized data model.

Relationships are key. XO Communications openly shared how impressed they were with IBM and their willingness to partner. Here’s what they had to say: "These features are targeted for us, they helped us in what were doing in the telecom sector to better manage our data because telecom is all about management of data -- if you don't manage your data, you're not going to be profitable and you're not going to be able to provide a good customer experience." Chris Payne, Senior Manager of Business Intelligence, XO Communications.