How can telcos improve their business performance in the digital era?

business performance

Telecom companies are now using customer analytics, network analytics, CLV, automation, and big data to improve their business performance. Operators need to look at numerous factors to enable the implementation of such tools which even then, requires continuous monitoring. Many telecom companies have reaped the benefits of going digital by increasing efficiency, reducing costs, and improving customer relations. What areas require development in order to improve overall business performance?

Excellent customer analytics capabilities

For most teleco’s, the customer is king, and companies should do everything they can to ensure that they are happy with their services. However, this does not mean that companies should sacrifice their profits in order to achieve this. Usually, companies use very few tools to analyse and divide their customers for customized plans and promotions. Today, with the emergence of complicated data analytics capabilities, companies are able to segment customer details and data into numerous smaller sections for more personalized offerings. This can considerably increase profits. A more specific and detailed customer profile allows telecom operators to disregard guesswork and implement more data-driven decisions. Aside from that, customer service is another area motivated and boosted by the digital age. One example, is AI group Avaamo, who offer chatbots that can interact with customers for troubleshooting purposes.

Automation of processes

The amazing achievements of Amazon and a number of other e-commerce companies in the online order management process, have encouraged customers to demand and expect the same speed, convenience and availability in the purchasing process, elsewhere. Telecom companies are now attempting to emulate the same by digitizing the order management process. They are also using automated systems to capture and validate their data, authorize payments, automate billing and communicate with customers more effectively. Companies that use these systems have shown a continuous increase and improvement in their business performance. For example, the majority of the service providers have developed apps that can help customers choose their own tariff and method of payment.

Digitalization of customer relationships

One of the biggest issues for telecom service providers is customer turnover. The removal of switching costs has encouraged customers to leave their provider at the slightest issue, when the expected level of service is not met. This highlights the need for a more robust CRM solution in order to maintain the subscription of more profitable customers. A digital CRM solution can ensure companies decrease their customer turnover and their costs, thus improving overall customer satisfaction. As an example, instead of diverting the customer to a call center, companies can use online forms and FAQs to lessen the burden on the call center. It is surely a win-win situation, as the customer will also get a timely solution to the problem and the company is able to save on call center and staff costs.

Improvement of IT infrastructure

Old fashioned IT infrastructure and systems legacy systems, obstruct companies that wish to improve their business performance. The amount of data collected by companies on their customers is continuously rising and therefore, it is equally important to store and process this information in real-time. Legacy systems and incompetent/ineffective IT infrastructure, is unable to keep up with the necessary computational power to process such data – to generate relevant and applicable insights. Furthermore, telecom companies that wish to improve business performance, should also look at automation of process and systems, including that of load balancing, automating server deployments, and service-ticket management. Improving a company’s IT infrastructure is critical in developing regions where telecom operators are adding millions of subscribers every month.