Summary: An excellent customer experience is a critical part of modern business, and one that most telcos really struggle with, achieving poor customer satisfaction ratings compared to almost every other industry. We’ve looked at a sample of leading companies with high customer approval ratings in telecoms and other industries, and found surprising commonalities in their approaches to providing a great customer experience, whether in the digital or physical world. In this, the first of a series of reports, we look at what great customer service means and what it takes to deliver it. (Executive Briefing Service, June 2017)
Below is a short extract from this 40 page Telco 2.0 Report that can be downloaded in full in PDF format by subscribers to the Executive Briefing Service here. To find out more about how to join or access this report please see here or call +44 (0) 207 247 5003.
Many network operators appreciate the need to improve their customers’ overall experience if their businesses are to prosper. Their executives understand the effect customer experience has on churn and customer lifetime value, and in turn on market share, operating costs, and revenues. This relationship is illustrated in Figures 2 and 3 for mobile telecoms, pay TV and internet. Using ‘Net Promoter Scores’ (NPS), the most widely accepted measure of customer satisfaction, it shows the relationship between NPS promoters (those more positive than negative and willing to promote the brand), passives (neither positive nor negative) and detractors (those who actively dissuade others), and churn and lifetime value.
Source: Bain & Co
Source: Bain & Co
While most appreciate in general terms what customer centricity means, it is not always well understood what good customer centric service should look like in practice, or how it can be achieved. Many would say that a service where all systems worked properly, customer queries were answered correctly, problems resolved quickly and few if any complaints were made to the national regulator, was providing a fully satisfactory service to its customers, and therefore providing a good customer experience. Given the complexities of delivering a mobile telecoms service, for many operators, delivering those would be an achievement.
However, that may not be what a customer regards as a good experience, and operators need to bear in mind that their customers compare them with other service providers, and not just other telecoms providers. They need to ask themselves if they should therefore aspire to something better than the satisfactory operation of their networks and services. To decide if that is the case, operators need to determine what a good customer experience is from a user’s standpoint, and establish means of assessing whether they have delivered that or not.
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...Members of the Telco 2.0 Executive Briefing Service can download the full 40 page report in PDF format here. For non-members, to find out more about how to join or access this report please see here or call +44 (0) 207 247 5003.
Technologies and industry terms referenced include: Customer centric, customer experience, employee engagement, AI (artificial intelligence)