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Transforming the customer experience: Navigating the evolving landscape of the Telecommunications, Media and Technology industry
Transforming the customer experience: Navigating the evolving landscape of the Telecommunications, Media and Technology industry
The opinions expressed within this article are those of the authors and do not necessarily reflect the views of TM Forum.
Across the Technology, Media and Telecoms (TMT) sector, providing an excellent customer experience has simply become an expectation. Now, as economic conditions tighten and cost-of-living pressures grow, the quality of customer experience becomes even more important. Consumers are becoming more discerning about where they choose to spend their disposable income and are more likely to cancel a service or move to another provider if their experience fails to meet their expectations.
The importance of customer segmentation cannot be overlooked when considering how to deliver against these expectations. All consumers are not the same and will be impacted by cost-of-living difficulties differently. Brands must look across their whole customer base, understand how different segments will be impacted, and serve all their customers according to their needs.
KPMG’s thirteenth annual Customer Experience Excellence Report, a comprehensive study of customer feedback about their experience of over 4,000 brands across sectors, emphasised that delivering a great consumer experience expands far beyond simple price considerations, and includes a much wider set of holistic considerations.
Environmental, social and governance (ESG)
Customers are more aware now than ever of the environmental impact of firms – 49% of customers this year said they would be willing to pay more for services and products with strong ESG credentials. TMT businesses have significant potential to lead the way and shape the ESG agenda because of how their products and services permeate other sectors and provide the enabling technology, media content and communication capabilities. Major players are already driving competitive advantage through climate action. Sky, for example, lends high-profile support to the removal of plastics in oceans, while Samsung exhibits strong commitment to accelerating the use of recycled & recyclable components. This is a must address area for TMT companies where first movers are driving the closure of the climate action feedback loop and winning customer buy-in and engagement as a result.
Technology
The TMT sector is at the forefront of adopting modern technologies. A major theme is the increasing integration of technology into how services and interactions are delivered – over 56% of customer interactions are now conducted through technology. Leading organizations are effectively combining technology and self-service with human support and interaction where needed. Vodafone’s TOBI is a clear example of such technology and has demonstrated the power of a carefully implemented conversational chatbot in the customers service arena. Facilities like these are likely able to manage around 80 per cent of customer enquiries at first base – but will trigger human back-up in the contact center for the 20 per cent of queries that need more bespoke support. Such applications are a clear example of using technology to make consumers’ lives easier whilst simultaneously delivering significant business value, reducing cost-to-serve without compromising a personalised customer experience.
Value & data
TMT companies traditionally rely on subscriptions, upgrades, and renewals. As cost pressures increase, new ways of creating customer value will be an important means towards differentiation. The messaging for customers increasingly becomes “Buy better, not cheaper” as firms look to bundles and packages to change perceptions of value and move away from price as the only discriminator. New ways of creating value can only be based on intimate understanding of customers, unlocked through a combination of well-structured, first-party customer data, along with ecosystem second-party data.
We are in a time of major disruption and businesses will inevitably be facing ever-changing challenges to move forward. However, the path to success remains the same. It is up to business leaders to shape a clear vision and alignment around their business ambitions; enable a cohesive and agile transformation that breaks down functional silos; and empower a firmwide culture that puts customers’ needs and wants at the heart of the decision-making.