In a Pew Research poll, a majority of 8000 technology experts stated that the most vital skills in the workplace of 2026 would be “hard-to-teach intangible skills like emotional intelligence and critical thinking”. Everything else will be digitized. Today, organizations are evolving and business landscapes are changing due to digitization. Large organizations like Microsoft, Apple and Amazon are leveraging these changes and the opportunities surrounding digital technologies. Their internal environments have witnessed accelerated business activity, processes and competencies. Every industry that is transforming digitally in the ecosystem is heavily dependent on telecom networks to interact with customers. Unfortunately, the telecom industry has lagged when it comes to transforming and evolving digitally with its consumers.
Digitization offers telecom companies the opportunity to rebuild their market positions, re-imagine their business systems, and create innovative offerings for customers. To revamp digitally, operators must offer an integrated, omnichannel user experience and build a portfolio of new products and services tailored to match the requirements of each customer. Together, this will allow operators to boost value.Many telcos are taking this opportunity to reinvent themselves. SK Telecom was one of the first few to enter digital services early. Launching SK Planet in 2011, by the end of 2012, SK Planet had earned more than $1 billion in revenue from this stream. More recently, the company launched a marketing platform, offering data-driven advertising and marketing solutions.There are a few pointers that telecom operators need to dwell on to catch up with the digitization trend.
Consumers are at the heart of the digital transformation, in virtually every industry
Digital touchpoints now influence customers’ preferences across the whole journey. If telecom operators should address these needs and expectations, they must rethink their marketing mix by reimagining the entire customer experience, including communications, marketing, sales, and service.
In achieving this, two main objectives are involved. Preferences should be given to the demand for more powerful devices, ubiquitous connectivity, closer interactions with friends and companies alike, at work, at home, and on the go. Secondly, websites have by far the most influence on customers’ brand preferences, with mobile apps a distant second and Social Media playing a major part. Intuitive UI, fast response, automated processes and in-store virtual experience are required to hold customer interest.
Case Study: Giffgaff a mobile virtual network operator, does not run any call centre. Instead, members help each by other answering questions in the company’s forums, thereby reducing the cost to serve. The company does not engage in any form of TV advertising, members of the network spread the word to attract new customers and receive financial incentives to do so. This business model allows the network to attract a different type of ‘free-thinking’ Generation Y customer who is disillusioned with the traditional mobile operating models. giffgaff customer satisfaction is rated at 90%. 31% of customers came from long-term mobile contracts with other providers. 63% of them recommend the service to friends or family members, and 78% among these recommendations become registered members.
Build more compelling digital products
The product-centric market has radically shifted to a customer-centric approach. It’s all about what your customer needs. Personalizing network products or services with targeted offers, tailoring the features of phones, smartphones, and tablets to customer needs, and most importantly providing personalized data plans will help reduce churn within the network.
Additional services like cloud storage, video, music, and games, and cross-vertical offerings in e-payments, e-health and e-wellness through the use of connected wearable devices will also boost credibility to the operators. Given the digital transformation, there are growing concerns about privacy and security. Operators willing to develop guaranteed data privacy and security services for premium customers, distinguish themselves in the market and attract more customers.
Case Study: GSMA Mobile Connect has made the effort to develop an industry-wide solution to help consumers take greater control of securing their data. The Mobile Connect authentication service is available to network operators globally and enables users to create and manage a digital universal identity via a single login.
Revamp systems
Many operators struggle to meet current digital expectations because of slow design processes, limited customer input, and rigid legacy IT systems. To overcome these barriers, operators should invest in:
- Effective customer-relationship-management systems to track customers’ digital footprints
- Introduce targeted Below-The-Line campaign management solutions
- Identify customer usage patterns
- Automate cumbersome processes that also reduces human errors
- Concentrate on boosting customer satisfaction
- Improve brand advocacy and differentiation
Case Study: Telefónica’s Smart Steps programme helps businesses make strategic decisions based on aggregated mobile network data across all Telefónica mobile users. The solution uses big data assets to analyse the movement patterns of millions of people, as well as their online behaviour and demographic profile. The data is then extrapolated to provide insights that are representative of the total population in each area.
Network operators that implement these strategies will be able to successfully transform their business. They will be able to open new opportunities and spearhead creative initiatives and strategies that only the digital forum can offer.
