Achieving CX Excellence in the Telco Sector
Mark Collins examines the relationship between customer engagement and profitability and looks at how telcos can build a robust and effective customer engagement strategy
Happy customers tend to be loyal customers. They also promote your business and your offerings to friends and family, acting as valuable brand advocates. Crucially, they often spend more. The Harvard Business Review reported that customers with the most satisfying experiences spend an average of 140% more than those whose experiences fell short.
Providing a high-quality customer experience makes your customers happy, increasing not only their loyalty but also their lifetime value, with over half of consumers considering alternative providers not based on what they pay but based on their experience. Highly engaged customers buy more, promote more, and demonstrate more loyalty. And, at the heart of a successful customer engagement strategy lies a high-quality customer experience (CX), one which delivers that all-important competitive advantage in an increasingly crowded marketplace.
For the highly competitive telecommunications sector, securing CX excellence has never been more important. According to Forrester, after the auto industry and upscale hotels sector, telecoms has the highest potential for increasing revenue by improving CX. Using its CX Index scoring system, it reports that telcos that increase CX scores by just one point will generate an additional $3.39 in per-customer incremental revenue; a figure that’s hard to ignore.
So, what does this mean for the telecommunications sector? What can telcos provide to foster this crucial CX excellence that should form the core of a robust and effective customer engagement strategy?
The rise of omnichannel
According to research, 54% of telecom consumers would consider alternative providers if their online customer journey was difficult and four out of five buyers are so accustomed to online purchasing today that this is what they desire from their local telco. Customers today expect a truly seamless omnichannel experience, enabling them to move back and forth from one experience to another on any device and platform, providing a true omnichannel experience comprising multiple customer touchpoints which seamlessly connect across a range of channels.
80% of buyers believe they would have an improved customer buying journey if real-time assistance and self-care were available. With this in mind, telcos really do need to put customers front-and-center and in real-time.
Keeping an AI on the future
IDC estimates that 75% of enterprise applications will make use of AI services by the end of this year. Industries around the world are adopting AI-based technologies like chatbots to improve customer support and onboarding. The telecommunications sector is no different, with some providers blending human and artificial intelligence to enhance customer experience. This ensures that customers, be it via social media, chat, email, text, or over the phone, receive personalized experiences based on their previous interactions.
Seeing is believing
Customers love visual channels when it comes to customer assistance, with 70% of YouTube viewers watching videos for “help with a problem.” Telcos need to be making more of the available technology to enhance customer engagement in this way.
While happy customers are sharing their experience with eleven others, unhappy customers will tell at least 15 others, and often share their experiences online. Telcos need to be focusing on improving the worst experience instead of refining the good, and delivering CX excellence through a combination of technology and that all-important human touch. By working with solutions that can embed into, enhance, and help businesses understand their customers’ journeys across all channels, this greatly enhances customer engagement and enables telcos to better understand their customers’ experience, shaping business strategy and intelligently informing future direction.
For more information on how ZephyrTel can help refine your customer engagement strategy, contact Mark Collins at firstname.lastname@example.org.