The telecom industry is witnessing an explosion of competition and an era of hyper consumerization. The most immediate impact has been an increase in customer churn. As a consequence, telecom operators are investing more in retaining and maintaining a customer. The price point of delivering services to those customers, however, has remained the same, leading to stagnant revenues. It is a tricky situation since the demand from customers for multi-play services– such as broadband, cable TV, IP TV, mobile wallets, data and content–can actually boost revenues if customers can be retained. Fortunately, the answer to both challenges, retaining customers and increasing Average Revenue per User (ARPU), is the same: creating exceptional Customer Experience (CX).
While the industry has had a successful “customer first” management approach for the last decade or so, customer needs and sentiments are changing rapidly. To keep pace, operators must take large technological leaps. Fortunately, with the growth in touch points, the opportunities to improve CX have also grown. For operators determined to address CX at each moment of truth in the customer’s journey, the rewards are ample and quick.
Essentially, operators are focusing on three business areas that impact CX:
Each of the business areas listed above is characterized by its own challenges and solutions. The discussion that follows for each of the areas is a starting point. Every operator must apply a layer of innovation to offer truly differentiated CX.
Fulfillment
Assume an operator can activate a new SIM for a customer in six hours. What if that time can be reduced to an hour? Every hour of delay in provisioning and activating a service means an increase in cost to serve. Similarly, the execution accuracy of an order determines how swiftly revenue can start flowing into account books. But, more importantly, at the other end of both processes is a customer whose patience levels are being tested and who could, without warning, switch to competition. Streamlining real-time prioritization of customer needs should be high on the agenda of operators. This means combining and analyzing customer data, service requests, service parameters, network capacity, inventory, billing, support availability, exception management and finally mapping them to regulatory restrictions.
Service Assurance
Customer expectations are growing. They want voice, text, data, TV on mobile, hosted services, applications, payment mechanisms, flexible plans for download speeds and volumes, etc. In addition, the number of channels for customer interactions is growing. It is difficult for operators to acquire a unified view of the customer across channels and develop a reliable understanding of the customer. As a consequence, CX is being hurt and the cost of customer support is going up.
Operators have not made the investments in technology that help them understand customers through real time analytics. They are handicapped by the fact that they are unable to reduce the touch points or ensure that hand offs between touch points are accurate and faster.
Billing and Revenue
An operator’s margins depend on accurate and timely billing. When an invoice is not accurate, it hurts the operator’s business. But more damaging is the fact that over billing has an adverse impact on CX. Poor billing processes have other adverse effects. For example, a customer may be a subscriber of multiple services from the same operator. But back end customer acquisition, provisioning, support and billing processes are configured separately, resulting in the operators seeing the same customer as different ones. This means multiple invoices, payment reminders and transactions that are unnecessary.
The platform mix for great Customer Experience
The complex requirements of CX demand a mix of platforms that combine technology and process. These platforms understand the customer, predict events and needs, make decisions, ensure consistency in CX and – important from an operator point of view – bring down costs. These platforms can be broken down into four components:
Where to begin?
While these are powerful tools and technologies aimed at improving CX, the broader question is: does every operator need everything? The answer depends on the maturity of the operator and the markets being served.
What is essential is that the operator begins the process to keep CX as the primary driver of business. The ideal route to doing this is to work with a technology partner that can break down each of the tools and technologies into smaller components that fit into a larger picture when required. If the operator has a deeper and more urgent need to address CX in the areas of voice or data or value added services, the technology partner should be able to implement only those components that are most immediately required – with the provision that components used later will easily fit into the overall CX jig-saw.
Somit Kapoor
Somit Kapoor leads the customer acquisition line of business for Global Media and Telecom vertical of Wipro BPS along with the niche practice of Customer Experience Transformation that is focused on new frameworks, tools and technologies that enables transformation of service delivery through innovative solutions.