15 Jul Major Telecoms can Maximize Ecommerce with Engagement
Major Telecommunications companies have formed the backbone of our digital revolution, powering the infrastructure that provides internet access to billions while also seamlessly incorporating new products and services along massive distribution and supply chains. The demand for new devices and networked services has been so tremendous that customers line up around city blocks and beat down doors to get the latest smartphone, tablet and more.
However, these companies have still been slow to adapt to consumers’ behaviour and expectations amidst the same digital transformation that without them would not have been possible. Without major telecoms, who would we have to thank for access to broadband internet, mobile devices like smartphones, or the integrated data networks that enable all of the commerce and information exchange we so love? So, in considering their future, it’s critical for major telecoms to incorporate scalable customer engagement solutions – not only to maximize revenue, but also to streamline operations.
Stable Revenue Streams Mean There’s a Need To Maximize ARPU
Consumers increasingly purchase their own devices, opt pay-as-you-go schemes, or even “cord-cut” in favor of Video and Television services from providers like Hulu, Netflix and more. For telecoms to remain competitive, appropriately bundling services, data and content must be the priority, both to maximize Average Revenue Per User and Profitability.
However, in an environment where consumer preferences are indefinitely unique and even more difficult to predict, customer engagement is required to tailor specific services and offerings to each individual customer. Customers are further looking for interactions online and through their mobile devices, as eMarketer predicts that mobile devices will account for 22% of all E-commerce sales and influence more than $1 trillion in US retail transactions in the coming year.
Customers throughout North America want more flexibility as to how they choose, receive and pay for products and services, so while omnichannel engagement is key to reaching the new digital consumer, telecoms are lagging behind in building real connections. According to Econsultancy, Telecoms are more disposed to investing in big data than other sectors, while customer experience follows closely behind. However, to generate the insights on their customers that they’re looking for, don’t telecoms need to generate measurable interactions in the first place?
Trends Dictate Digital Engagement is Integral
According to PriceWaterhouseCoopers, digitization of core telecom businesses are now the priority for any savvy service-provider. “Telecom providers must completely redefine their relationships with their customers.” This comes by providing “compelling online digital experiences as well as service automation and more efficient, straight-through processing of financial transactions.”
PwC further adds that these transitions must take place amidst smaller, more agile telecoms’ efforts to thoroughly engage customers without being held back by legacy architectures and products that prevent digitization. Fortunately, there are solutions built to provide data congruity between new digital tools and legacy products, no matter the size, scale or number of users needed for integration.
Telecom Competitors Already Transforming Digital Customer Experience
Digitization is key for future telecom success, but the impact, when quantified, is truly outstanding. According to a recent McKinsey study of 80 telecommunications companies worldwide, there is a strong correlation between profit margin and five select areas of IT:
- Robust customer analytics
- Digitization of order management
- Self-service customer relationship management
- Simplified IT-application landscape
- Automation of IT-infrastructure management
McKinsey found that Telecoms with digital capabilities in these five areas boast a profit margin of 43 percent, while competitors who fail to accomplish these capabilities average margins of only 21 percent.
Tools like Online Scheduling, Digital Queuing Management and more have the ability to digitize the core engagements Telecoms have with their businesses, all while providing sufficient backend capabilities to both leverage more customer data and consolidate IT applications and infrastructure.
Simple Transformation Enable Future-Oriented Telecoms to Flourish
At their base, however, tools like this can simply help a business generate more revenue and maximize current earnings. Online Scheduling can increase bookings and sales meetings by up to 40%, while Digital Queuing Management eliminates frustrating waits in line and fundamentally redesigns store experiences, all while maximizing revenue-per-store-visit and offering the analytics to best allocate resources between each location.
So, in the midst of our continuing digital transformation, the brightest minds in the market would agree that telecoms can achieve further growth and profitability without fearing new competitors that emerge on the digital landscape. Since they built the infrastructure that has allowed all our goods and data services to flourish, starting with the right apps can be the key to achieving their own digital transformation!