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Telecom Business Review | Thursday, May 06, 2021
Utilizing the full potential of analytics-driven customer value management will be the primary growth engine in saturated, competitive telecom markets.
FREMONT, CA: As consumer dynamics evolve significantly, the bar for technologically progressive 21st-century telecom operators has grown even higher. Increasingly pleasing, maintaining, and attracting customers' needs, telcos go on a complicated journey away from the business-driven ads they have traditionally embraced and toward customer-centric, data-driven, highly tailored campaigns constantly developing.
This demand for customization is representative of a larger trend—according to an analysis, organizations that thrive at personalization create 40 percent more revenue than ordinary players across all industries. In addition, due to the pandemic-induced rise in e-commerce and broader changes in shopping habits, consumers are increasingly willing to abandon brands that do not meet their expectations. During a recent three-month period, roughly three-quarters of U.S. customers tried a new buying behavior, and over 40 percent tried a new brand.
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In saturated, approvingly competitive telecom markets, mass personalization will be the primary growth driver for the foreseeable future. By integrating data and analytics to create highly tailored experiences, operators may revamp their approach to customer value management (CVM)—the practice of optimizing customer value at each stage of the customer life cycle, from asset to cross-sell to retention.
Telecommunications companies widely recognize this possibility, and many are making considerable inroads. The telecom industry believes that nearly a quarter of global telcos are just beginning their CVM journey. In contrast, roughly 70 percent have launched successful pilot programs based on analytics-driven CVM engines. However, these operators have not yet scaled their projects sufficiently to reap the full benefits of CVM. Less than 5 percent of telecommunications companies utilize analytics and data-driven personalization to establish true competitive advantage and maximize revenue growth.
And this potential is substantial. Utilizing the full potential of analytics-driven CVM, operators can increase revenues by up to 10 percent and increase customer satisfaction and engagement by 20 to 30 percent. To achieve these outcomes, operators must not only develop the "brains" of CVM, that is, data and analytic capabilities, but also the "legs" of the operation: by hiring the right talent, adopting agile operating models, assuring that multiple channels are operating effectively and in sync, continuously deploying business-driven use cases, and providing that CVM is viewed as the organization-wide priority that it is.
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