How customers and digital transformation will influence the telecom sector this year
As digitalisation continues to revolutionise a number of traditional vertical sectors, companies around the world – large and small – are striving to reach a more agile and customer-centred business model. The telecom sector is no exception – in fact, it is the perfect example of an industry undergoing significant change.
Ever-increasing competition and tight margins are forcing mobile service providers (MSPs) to identify more customer-centric service models to engage the always on, digital generation. In a world that is characterised by mobile-first, everything depends on the service experience from MSPs as they are the ones laying the groundwork for content-delivery, communication and services to their customers through their mobile devices.
It is clear that a fundamental shift is taking place in the industry – moving from serving customers in-store and through contact centres, to a more direct engagement through on-demand services, says Jennifer Kyriakakis, founder of MATRIXX Software.
In order to keep customers engaged, telecom providers will need to keep up with the rapid digital developments in the sector – here are some of the trends that will shape 2017 and beyond:
MSPs will redefine what customer service means. Digital consumers want instant gratification, and they will do everything through their device, rather than painstakingly through a call centre or retail outlet. They will also tweak their mobile account, buy new services and control them on their own terms, direct from the device.
During an average day, MSPs have about 150 interactions with each customer, who expect instant responses and seamless service across each interaction. That also offers MSPs 150 opportunities to better monetise their services. And that means service providers need greater business agility.
Net Promoter Scores (NPS) will become the main indicator of digital capability. NPS – the metric that shows the likelihood of one customer recommending an MSP to a friend – will start to appear in CSP quarterly financial reports, as the metric becomes the leading litmus test of customer experience and therefore loyalty and long-term shareholder value. MSPs that have higher scores will see their revenue grow by 33%, those with lower scores will see revenue decrease by about 7% a year.
There will be a proliferation of on-demand capabilities. Gartner predicts by 2017, U.S. customers’ mobile engagement will drive mobile commerce revenue up 50%. That means MSPs need to interact with their customers in real-time if they’re going to impress them and hold onto them in a market notorious for its high level of churn.
Consumers want MSPs to slice up their offerings because they only want to pay for what they’ve used, and large, inflexible data plans will become a thing of the past. Customers expect to control their account direct from their device, share their data with friends and family, receive personalised, individual offers and see in advance when their data allowance is running low and top up in an instant.
The author of this blog is Jennifer Kyriakakis, founder of MATRIXX Software
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