February 2017 Market Research This presentation explores background - - PowerPoint PPT Presentation

M a k i n g C u s t o m e r Va l u e C r e a t i o n the New Competitive Equation

February 2017

Market Research

This presentation explores background research on the Omni-Channel as it relates to the telco industry. The research includes previous reports by the CMO Council and

• ther third parties as well as current high-level findings from

the recently launched “Getting Serious About Omni- Channel Experience” research project, spearheaded by the CMO Council in partnership with Huawei.

Research Attributions

CMO Council & SAP: “Context Commerce & Customer”

• Research based on survey of 170 global marketing leaders
• Report focuses on digital marketing and customer experience

CMO Council & IBM: “Connected Interaction to Power Brand Attraction”

• Research based on survey of 198 global marketing leaders
• Report explores digital transformation and its impact on the relationship with the

customer

CMO Council & Openet: “Making Sense of Subscriber Complexity”

• Research based on survey of 212 executives in telco
• Explores development of data-driven, personalized user experiences

EY: “Global Telecommunications Study: Navigating the Road to 2020”

• Research based on interviews with 40 industry leaders worldwide including

telecommunications operators, technology companies and industry experts

ICT Industry Overview

Industry trends impacting the evolution of the ICT industry:

• On-boarding IoT
• Proliferation of channels
• Increasing significance of digital

Major roadblocks plague the industry:

• Disruptive competition
• Uncertain regulatory environment
• Lack of organizational agility

On the road to digital transformation:

• Worldwide spending across industries on digital transformation technologies

will reach $2.1 trillion in 2019

• The end goal for ICT:
• Improved customer service
• Seamless integration of channels
• Consistency of experience across devices

EY: "Global Telecommunications Study: Navigating the Road to 2020”

Digital is Changing the Brand’s Customer Experience Ecosystem

Most critical aspects of customer experience:

• Fast response times to issues, needs, complaints – 75%
• Consistency of experience across channels – 55%
• Clear, consistent messaging and information across channels – 46%

The shift to digital has changed engagement with customers:

• Altered content strategy: more content types & formats – 60%
• Need for aggregated data pulled across entire company – 44%
• Turned engagement into a 24/7 opportunity to connect with customers – 38%

Top mandates brand marketers face:

• Better connect campaigns into a connected experience – 42%
• Tie entire customer experience journey together across physical and digital

engagements – 37%

• Bring on additional resources and technologies to better manage data and automate

experiences – 29%

CMO Council: “Context Commerce & Customer” CMO Council: “Connected Interaction to Power Brand Attraction”

Data-Driven Customer Engagement: Brand Leaders vs. Laggards

What is a brand’s relationship with data?

• Leaders gather data from points of transaction and engagement, action on

real-time customer feedback and integrate third party market data

• Laggards are struggling to identify customer behavior information and fail to

gather insights from points of engagement and transaction

Sources of Customer Behavior Knowledge Laggards

(14% stuck in a data rut)

All Marketers

Leaders

(5% reaching data success)

Where customers are engaging and transacting

15% 51% 80%

Customer feedback

48% 55% 30%

Third-party market data that could impact the customer

30% 33% 40%

We are struggling to identify customer behavior information

78% 36% 10%

CMO Council: “Connected Interaction to Power Brand Attraction”

How Telcos Are Keeping Pace with Digital Transformation

Top digital experience goals:

• Connect campaigns into connected experience that drives engagement across the

entire lifecycle – 42%

• Tie the customer experience journey across physical & digital engagements – 37%
• Bring on additional resources & technologies to better manage data, initiatives and

automation – 29%

Keeping pace:

• 69% of executives believe the ICT industry has strong technology capabilities, but will

find it difficult to complete digital transformation projects quickly enough

• 64% believe this transition could be outpaced by other industries

Roadblocks to enhanced digital customer experience:

• 81% struggle to launch and provision new services quickly and cost effectively
• 75% need integration between disparate data sources
• 72% lack the subscriber insight and intelligence critical to the execution of a more

personalized user experience

CMO Council: “Making Sense of Subscriber Complexity”

How to Manage Complexity

Carriers point to:

• Simplifying the customer experience – 44%
• Overall subscriber data management & integration – 43%
• Replacing declining core service revenues – 32%
• Differentiating services from competitors – 29%
• Personalization of marketing and CRM campaigns – 28%

CMO Council: “Making Sense of Subscriber Complexity”

The Omni-Channel Imperative: Initial Findings of Current Research

“Getting Serious About Omni-Channel Experience”

Ongoing research by the CMO Council in partnership with Huawei

Proper Omni-Channel Management:

The Imperative to Enhance Customer Experience

Market Influencing Disruption

Top 5 market factors contributing to how telcos and brands interact with customers:

• More empowered, peer-inspired digital customer
• Higher expectations for real-time, always on response
• Cross-culture complexities and challenges
• Customer shift to mobile content, commerce & convenience
• Millennial market demands for digital engagement

Characteristics of Enhanced Omni-Channel Experience

Top 5 characteristics of a complete, fully functioning, data- driven Omni-Channel experience in the telco sector:

• Seamless, frictionless commerce and faster problem resolution
• Individualized interactions and richer, deeper knowledge of

customer journey

• Higher levels of conversion, customer profitability and retention
• Fully integrated channels of engagement -- social, mobile, web,

contact center, and in-store

• Consistent, personalized and contextually relevant experience

across all channels

Current Gaps in Omni-Channel Management Model

Top 5 gaps in the current Omni-Channel management model:

• Mapping effective migration strategy and transformation plan
• Having the necessary talent, technology and process in place
• Implementing best practices across the organization
• Specifying the right architecture and scalable infrastructure
• Adding proper governance and oversight

Brand Concerns in Working with Telcos

Telcos Think:

• 1. Technical/operational

mindset

• 2. Data privacy concerns
• 3. Data quality, accessibility

and ease of integration

• 4. Bureaucracy & complexity
• 5. Lack of innovation or

willingness to transform

Actual Brand Concerns:

• 1. Data privacy concerns
• 2. Costs or control
• 3. Regulatory scrutiny
• 4. Bureaucracy & complexity
• 5. Responsiveness

How Can Telcos Help Brands?

Top 5 ways telcos can help brands deliver on their customer promise:

• Data sourcing, customer insights and behavioral analytics

(Telecom Data as a Service – TDaaS)

• One-to-one marketing and personalization at scale
• Promotional partnering or co-marketing
• Social and search marketing optimization
• Customer help and multi-channel contact management