Telcos possess an abundance of customer data and are increasingly compelled to turn this under-performing asset into a new form of “data currency” to create customer value, generate new revenue streams and gain competitive advantage. According to a new report titled “Customer Value Creation from Live Data Interpretation” by CMO Council, the 150 senior telco marketers also said they are still working to improve the quality, timeliness, depth and reliability of customer data in their organisation.
According to them, the top five contributors to customer value creation are:
- Efficient and accessible customer care and quick problem resolution (57%);
- Consistent, predictable experience across all channels of engagement (54%);
- Operational excellence, reliability, uptime and quality of service (48%);
- Simplified customer journey to subscribe and use services (46%);
- Personalisation of content, plans, and support programs (28%).
Less than 10% of telco marketers say their companies are highly effective at using historical data to better understand customer needs and revenue growth opportunities. Meanwhile, only 20% stated they are consistently good. On the other hand, 28% say they are inconsistent in the use of historical data, have problems with extracting data from silos or are just poor at using it effectively.
When comparing the use of historical data to real-time insights, those surveyed indicated that access to timely customer journey and lifecycle analytics (61%) would be the best way for them to deliver more relevant and valued products, services and experiences. This was followed by multi-channel engagement (48%), purchases and transactions (37%), automated smart interaction (33%), location and mobility (28%), and pricing and profitability (28%).
However, survey participants noted that the primary obstacles to generating greater customer value from live data utilisation were based on a myriad of perceived deficiencies. These include lack of resources/talent, dated infrastructures, digital transformation delays, change-resistant mindset, knowledge of advanced technology and the lack of data integration and unification across the enterprise.
Donovan Neale-May, CMO Council executive director, said tracking customer value creation as a critical contributor to business fundamentals and performance indicator has yet to be widely adopted in the telco sector. About 60% of telco marketers state they have yet to undertake studies that correlate customer value creation to business performance, he said.
“Looking to counter competitive threats and inroads, telco marketers are now embracing a wide range of new strategies to deliver both customer value and incremental margin or revenue,” Neale-May added. Among those topping the list are better use of data and insight, more advanced customer engagement technology, infrastructure upgrades, and quicker response to evolving digital business service and lifestyle needs.
The survey of 150 chief marketing executives at renowned communication service providers, mobile network operators and digital media companies was undertaken in the second half of 2018. About 23% surveyed were from Asia Pacific, while 34% were from Europe, 25% in North America, 9% in the Middle East/Africa and 9% in Latin America. Over 50% of marketers surveyed hold positions at companies with over US$1 billion in revenue and 31% are at companies with annual revenue of between US$50 million and US$1 billion.
(Photo courtesy: 123RF)