The telecommunications industry is in dramatic flux. The rapid transformation of digital experiences and services are being offered to meet customer demands for speed and ease of access, with a strong emphasis on artificial intelligence (AI).
With MWC Barcelona coming to a close earlier this month, the topics, trends, and ground-breaking products and technologies disclosed are bound to continue setting the benchmark of future connectivity. Simon-Kucher & Partners evaluated the following three strategies for telecom operators to improve their customer experience whilst remaining open to trending shifts within the industry.
Personalized digital experiences
In today’s digital economy, personalized experiences have become a prerequisite for companies wanting to achieve bigger gains. According to McKinsey’s ‘Next In Personalization 2021 Report’, companies with faster growth drove 40 percent more revenue from personalization. So it’s prudent for companies to explore ways to integrate technology that introduces content personalization for consumers.
The frontrunner would be Artificial Technology (AI). The use of AI in telecom companies is expected to generate close to US$11 billion by 2025 and is essential in gathering data that can allow companies to make informed product purchasing decisions. Another trend to hone in on is smart mobile technology. Smartphone penetration has reached 90 percent in the Middle East alone. By the end of this decade, it is expected to reach 95%. Telecom operators can facilitate the use of 5G technology to boost smartphone penetration and high-speed internet connections.
There is so much more the industry can explore through digital engagement, including digitizing products and services, gamifying experiences, creating loyalty eco-systems to encourage customer adoption, as well as using data insights to create personalized customer experiences are just a few examples.
Introducing new revenue streams
Changing average revenue per user (ARPU) competition isn’t something new for telecom operators. When we saw the market shift from voice data over a decade ago, we were likely expecting to notice something similar as new services dominate marketplaces of the future. According to Global Mobile Trends, services outside of the core market already make up 20% of total revenues for the top telecom operators, including pay-TV, media, advertising, IoT, cloud, security, financial services, lifestyle products, and vertical industry solutions. Diversification is the prominent way forward for telecom operators wanting to hone in on these shifts.
Enhancing networks and services
The pandemic has proved that more customers place quality networks and services above the pricing amount while making purchasing decisions. According to the Customer Base Management Study* conducted by strategy and marketing consultancy Simon-Kucher & Partners, 73 percent of customers in the Gulf Cooperation Council (GCC) value a fast internet connection the most. Realistically, telecom operators need to increase investment in their networks and services or risk becoming less appealing to customers – even potentially losing them to competitors.
So long as it doesn’t jeopardize the bottom line, there’s no reason to avoid experimenting with new technology in ongoing business strategies. Now is the time for telecom operators to act and adapt based on their iterative improvements to reach their north star of customer satisfaction.
Nilay Akdemir is Senior Director of Simon-Kucher & Partners Middle East.
The opinions expressed are those of the author and may not reflect the editorial policy or an official position held by TRENDS.