Despite experience now being THE competitive differentiator, many businesses are still struggling to meet the expectations of today’s multi-device, always-connected consumer. Playing catch-up, they are struggling to reach the ‘bar’ set high by ecosystem disruptors such as Amazon, Alibaba, Facebook, and Uber, who are already reshaping expectations and determining what defines a ‘great’ experience from a brand.
For telcos, it’s no different. In fact, the challenge is even more pronounced. They face the added pressure of OTTs, content providers and aggregators vying for market position and customer attention, and launching services that bite into traditional telco ground. Against this backdrop, rampant commoditisation continues to erode profit margins and adds pressure to secure customer loyalty through means other than price. This has led many to believe that the only source of differentiation is the quality of the customer experience they offer.
In order to survive and thrive in such an unpredictable, complex, and ambiguous environment, telcos must take a two-pronged approach to achieve profitable growth.
The first prong entails focusing on delivering an orchestrated omnichannel customer experience that supports all customers through every interaction moment across their various journeys, and helps them achieve their desired outcomes quickly. In other words, no matter by what channel they engage with the brand – or the brand engages with them – a customer will receive an instant, highly personalised experience that can be continued across any channel. The omnichannel pay-off is well proven: businesses with strong omnichannel customer engagement strategies retain on average 89% of their customers, compared to 33% for companies with weak omnichannel customer engagement (Source).
The second prong involves enabling continuous optimisation, being able to quickly create (or co-create) new digital services designed to attract and retain customers, without having to redesign systems and processes from the ground up each time.
This kind of effective, two-pronged omnichannel approach also provides a clear path for customers, enabling them to find, configure, and subscribe to relevant services that meet their specific needs at a specific time. By taking this approach, telcos can ensure that customers will want to stay long enough to enjoy the new digital services they develop as they morph into digital service providers.
Omnichannel provides an essential foundation for creation and delivery of new digital services and growth. But to do the above, telcos need to:
- Accelerate digital transformation in order to be able to respond rapidly to changing market dynamics, including the move to multiplay, the imminent rollout of 5G networks, and the increasing use of artificial intelligence.
- Identify and address capability gaps in their organisational competence and technology platforms must happen if telcos are to maintain optimal relationships with their customers in the future.
- Deploy an omnichannel customer experience platform, which can be used to build a unified view of the telco’s customers across all departments, data systems and channels.
- Have a good understanding of how their customers wish to interact with them – and they must prioritise those journeys which most benefit their customers.
- Own the capability to orchestrate everything to drive tangible results, such as increased customer retention, while avoiding customer journey fragmentation and the creation of new internal silos.
Our new white paper, launched in partnership with Ovum, explores the omnichannel opportunity for telcos.
Written by leading Ovum analysts Pamela Clark-Dickson and Jeremy Cox, the paper not only delves deeper into the points above, but also gives insights and practical advice on how to approach digital transformation, and what telcos need to do be able to deliver a truly omnichannel experience to customers.
To get your free copy, just click here.