the New Competitive Equation
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1 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
2 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 other 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.
3 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
4 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
5 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
6 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
7 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
8 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
9 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
10 Proper Omni-Channel Management: The Imperative to Enhance Customer Experience
11 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
12 Characteristics of Enhanced Omni-Channel Experience Top 5 characteristics of a complete, fully functioning, datadriven 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
13 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
14 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
15 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
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