For Telecoms, Cultivating Loyal Customers Requires Better Customer Data Management
By Rupesh Mahto, Senior Director, Technology Consulting, Protiviti Australia
Understanding and mapping the customer journey is the starting point from which to identify the key opportunity moments where access to the right customer data can help anticipate a service need, resolve an issue without asking, or offer a customised product — in other words, make the difference between cultivating a happy, loyal customer or losing one to the competition.
The telecommunications market in Australia is a $21.2BN opportunity, according to an IBISWorld report, but with profit margins a little over 10% — and expected drop of 2.7% in the next 5 years — competition for customers among the three major Australian providers and minor players is likely to remain heated. This is placing considerable stress on telco sales, marketing and retention departments to lure and keep customers. At the same time, the telco market has one of the lowest industry averages when it comes to net promoter score (NPS), a metric used to gauge customer satisfaction and loyalty. The combination of high competition and low customer satisfaction can be seen as a perennial challenge by the industry — or a wide-open opportunity.
The reasons for low NPS scores are not secret. According to CX research by Pega, difficulty dealing with the provider is number one reason telco customers are unhappy. More specifically, failure to proactively offer relevant services at key moments, provide personalised information, know the customer’s situation, and reward customer loyalty represent a large part of customers’ dissatisfaction with their provider — and a nice cluster of opportunities to differentiate. What it comes down to is data — and how telcos can use it to meet the customer at these critical moments.