Survey: Customers Need More Love from Their Mobile Operators

Perfecting the customer experience has long been the goal for many communications service providers (CSPs). We certainly saw this issue reflected upon at last year’s Mobile World Congress. However, each year, as customer demands become more complex, it’s increasingly important for operators to do everything in their power to understand and anticipate customers’ needs and deliver on them.

We at Comptel wanted to gauge what customers think about their relationships with their mobile operators, and shed light on how mobile operators can better engage with them to increase loyalty and capitalise on potential upsell opportunities. (A big thank you goes to research firm Vanson Bourne who we commissioned last month to survey 2,000 consumers from across the United Kingdom, France, Germany and the United States.)

The survey findings clearly indicate that customers need more love from their mobile operators. Two-thirds of respondents said that they feel neglected by their mobile operators, and more than two in five are likely to churn within the next two years as a result.

Would you appreciate your mobile operator being more interactive with you based on how you use its services?

More interaction would certainly go a long way in ensuring customer satisfaction. For instance, more than one in five respondents reported experiencing poor quality of service (QoS) at least once a week. Yet, the majority of customers (72 percent) are largely willing to forgive and forget if their mobile operator apologised and sent a special offer. Younger customers aged 18-25, in particular, are most likely to become more loyal if shown more love.

If your mobile operator noticed this poor service when it happened and sent you an offer (e.g. free coffee at Starbucks) and apologised, would you be more loyal to them?

The survey also revealed that there are significant revenue opportunities to be had if mobile operators were more attentive to their customer bases. Nearly three in five respondents said that if their mobile operator offered faster download rates, they would pay for it. In fact, nearly one in five respondents said that they would be willing to pay more than five pounds, euros or dollars extra monthly for such an upgrade.

If your mobile operator offered you faster download rates, how much would you pay for this a month?

Like I said in today’s press release, with so many customers expected to churn if their needs are not better met, mobile operators need to adapt to their demands for more personalised and dynamic services to survive. Comptel believes real-time data collection and analysis and increased customer interaction are critical to fostering loyalty and maximising revenue opportunities.

A full copy of this research report will be available at our booth at Mobile World Congress (27 February – 1 March in Barcelona) in Hall 1 at Stand 1C06, or email comptel.marketing@comptel.com. We hope to see you at the show and look forward to discussing the issue of customer engagement further in the coming months.

Looking Forward to TELSA in Saudi Arabia

Comptel sees a lot of potential in the Middle East and Africa (MEA), and is investing to create more opportunities for being a key stakeholder in the region for its customers and partners. One country that presents immense possibilities is Saudi Arabia, which was recently ranked as the most valuable and second largest Middle Eastern mobile market with 42.9 million subscriptions.

As such, Comptel is a silver sponsor of and looks forward to meeting industry players at the Saudi Telecoms and ICT Summit (TELSA), which is going to be held from 29 to 31 January 2012 at the Four Seasons in Riyadh. The conference and exhibition will cover themes such as infrastructure development, growth strategies and investment opportunities in the Saudi telecoms industry.

Ahmed Hamza, a cluster head in the MEA region for Comptel, is going to participate in a panel discussion on harnessing the full potential of broadband to drive increased revenue, which is going to be held on 29 January at 16:30. The panel will talk about increasing ARPU through an effective broadband strategy, attracting customers through digitisation and content development, and capitalising on mobile broadband to increase revenue by focusing on sectors such as vocational education, health and agriculture. It will also discuss developing non-voice service offerings through segmented focus and niche marketing, introducing value-added services to meet customers’ needs using data mining and other business intelligence tools, assessing pricing structure and determining an optimal tariff rate. Last but not least, Ahmed will explore how operators can leverage broadband services to increase their market share.

The next day of the summit at 11:30, Kim Molin, a director of solution management at Comptel, will present a session on intelligent bandwidth management for an optimised customer experience. The presentation will cover differentiating data services with a personalised quality of experience, introducing bandwidth management tools for proactively improving customer satisfaction and increasing ARPU through intelligently up-selling new data services.

From Saudi Airlines presenting its strategic ICT transformation initiatives to gain competitive advantage in the aviation industry to Zain Saudi Arabia giving a cost-benefit analysis and critical insights into why it chose the TD-LTE variant, this summit and exhibition should be quite an exciting event with local, regional and international telecom operators, regulators, service providers, wholesale carriers, government agencies, vendors and corporations together under one roof. It’s also interesting to note that the conference organizers have provided workshops on how telecoms can provide solutions to the public and oil and gas sectors.

We welcome you to visit and interact with Comptel experts at our TELSA exhibition stand (G 25).

Around the World

Informa Telecoms and Media Blog…
12 Top OSS/BSS Trends for 2012
Analyst Peter Dykes highlights an exciting outlook for the OSS/BSS sector in 2012. He predicts that the growing requirement for more complex rating and billing functionality will open up opportunities for vendors, and says that improvements in this area are necessary for operators embracing LTE. For 2012, he also believes that in both mature and emerging markets, there will be a greater focus on areas such as customer experience, business intelligence and innovation in handling network congestion.

The predictions Comptel believe are particularly interesting include the rise in demand for OSS tailored to M2M services, which Steve Hateley recently wrote about, and the growth of policy-based online charging (OLC) as operators seek to offer more innovative services.  What 2012 prediction do you think is most surprising?

Telecomasia.net…
Five New Challenges for APAC Telecoms in 2012
Ovum analyst David Kennedy believes that tightening margins and streamlining business processes will be the main theme for the Asia-Pacific telecoms industry, as overall growth in the mobile market slows and competition for customers increases. David believes these five trends will drive the market forward in the region in 2012:

• The push for cost optimisation and efficiency – this will grow in importance due to increasing competition and margin pressures.
• The importance of customer service – operators will work to stay ahead of the competition with promotions, marketing, better network convergence/reliability, etc.
• The future of smart devices and mobile app ecosystems – successful devices will need to integrate applications, content and services into the platform.
• Network data management importance– as data surges, operators are being forced to alleviate network congestion and will roll out a combination of solutions including more LTE networks and Wi-Fi offloading.
• Bundling for customer retention – more bundling is expected to emerge for mobile-only and second-tier operators.

Do you agree that these trends will define the APAC telecoms industry in 2012 and ensure continued profitability and improved efficiency?

Telecoms.com…
Mobile Network Predictions for 2012
In 2012, the mobile market will see two key trends emerge: technologies critical to maintaining a high user experience and initiatives providing additional profit growth opportunities while reducing costs.  In an effort to improve the customer experience and increase revenues, operators are looking to invest in network sharing and traffic optimisation.

Another major issue in 2012 will be coverage for LTE networks, most notably in markets where operators only have access to high frequency spectrum. LTE femtocells are predicted to boom in popularity, which will benefit residential, business and public hotspots.  However, deployment of LTE small cells for capacity improvements is not expected to be widespread in 2012.

Additionally, investing in traffic optimisation for video is a hot topic, with content providers, CDNs and other vendors, and mobile operators debating various ways to deliver mobile content efficiently. We’re looking forward to seeing mobile innovations in action at the upcoming London Olympics, where operators are expected to showcase the successes of their technologies.

Around the World

The Hindu Business Line…
Take Broadband to the Masses
In order for India to sustain the economic growth it has experienced over the last few years, broadband needs to be accessible throughout the country. Spreading broadband beyond urban areas ensures the efficient delivery of remote education, healthcare and government services.

Factors that previously prevented widespread adoption include affordability and lack of availability. However, while the latter is less of a hurdle today as service providers continue to embrace wireless, the former continues to be a challenge. Sustainable growth requires subscriber plans that are reasonable yet profitable. This is where OSS/BSS providers can help, by giving communications service providers (CSPs) the opportunity to make flexible plans while simultaneously reducing their costs.

FierceWireless…
Increased Network Congestion Requires Fresh Thinking from Operators
As the growing popularity of smartphones brings a boom in data traffic, operators are developing new ways to acknowledge network congestion problems and deliver a personalized customer experience. In fact, recent research from Current Analysis claims that social media and end-user forums have become a key part of identifying network issues and prompting operators to take action.

Additionally, many operators are training customer support staff to assess network failures and award credits to individual subscribers when needed. This is a step forward towards improving the customer experience, but as IDC analyst Andy Hicks recently said, the key to ensuring predictive and proactive customer service is implementing service and network automation, so that subscribers’ needs are addressed before end users call customer service.

CIOL…
LTE Won’t Stop Carrier Wi-Fi Momentum
Despite the growth in LTE networks, many CSPs are embracing Wi-Fi due to its massive footprint, low-cost and large presence on smartphones. In addition to deploying Wi-Fi access points in hotspot locations, they are integrating the technology into their core networks and extending OSS/BSS and customer management capabilities to Wi-Fi.

While the benefits of LTE are clear and the technology is continuing to gain momentum, ABI Research analyst Aditya Kaul observes that the true motivation for adopting LTE is for customer acquisition, competitive differentiation or being first to market. But the adoption and promotion of Wi-Fi still makes sense for many operators when it comes to retention, which could even be turned into a competitive advantage. Do you think Wi-Fi has a long term play, as new LTE services, products and packages continue to roll out?

Thinking of Postponing BSS/OSS Enhancements? Think Again

By: Deb Osswald, Research Vice President, Next Generation Network (NGN) Operations, IDC

Communications service providers (CSPs) often prioritize network investment over OSS/BSS, but they need to think again. OSS/BSS is now, more than ever, a critical enabler in shaping service portfolios and the customer experience.

It seems that with IT and networks converging and more and more services being delivered from IT clouds, we think CSPs might want to consider prioritizing IT-centric BSS/OSS initiatives right up there with network-enhancing ones. While we will stipulate that the network is the central asset of CSPs and is clearly worthy of major investment, it is also CSPs’ operational efficiency, effectiveness and flexibility that can more often than not help them distinguish themselves in the increasingly crowded communications landscape.

Unique assets like a flexible billing system and a simple-to-use, easy-to-navigate self-service, web portal can give CSPs a real advantage in the marketplace; plus, some increasingly important application areas such as analytics, policy management and customer experience management (CEM) can add to their value propositions. With robust capabilities in these key areas, CSPs will have much more to offer than the over-the-top (OTT), Internet-based service providers can possibly offer because these abilities will allow them to be much more innovative in how the service or application is ultimately created, configured, bundled/delivered and supported. In addition, CSPs are uniquely equipped to leverage differentiating capabilities like location, presence, context and even augmented reality to create new service mashups or supplement a specific application to improve its utility and ultimate value to customers.

Also, CSPs must be equipped to tap into the vast ecosystem of application, service and content providers, and must have highly automated systems and processes that can handle rapid integration, management, delivery and customer support for third-party-provided service components, applications and content. Costly onboarding of an independent software vendor’s application or slow and laborious implementation of a new pricing plan for data downloads can cripple the profitability of an otherwise highly profitable offering. To make matters worse, if CSPs don’t have their operations up to par and ensure they are highly automated, and yet are able to get to market an innovative offering that suddenly attains great popularity, the offering’s very success can kill profitability for that offering. A lack of automation for a particular offering that achieves a high volume of sales can dramatically impact profitability by compressing margins to unacceptable levels that will turn an otherwise successful launch into a financial and operational disaster.

With growing opportunity residing in the SMB and mid-market enterprise segment, CSPs would do well to invest in BSS/OSS enhancements, cloud infrastructures and integration of the two in order to ensure they can support business-critical application delivery (via the self-service SaaS model) to this important customer set that is fast-embracing the value of the on-demand, pay-per-use application model.

The bottom line is CSPs must realize that investing today will yield significant dividends tomorrow. Missing the boat on this new services paradigm (cloud, M2M, etc.) by not investing in operations today is missing the boat on attaining relevance in the markets of the future. Leverage your networks, invest in your BSS/OSS and provide customers with a relevant portfolio of fully automated, high quality, secure services, applications and content. Also offer customers a positive experience (high quality of service, SLAs when appropriate, etc.) and use the network to elevate the reliability of your offerings, but ensure that success of an offering means financial success as well.

Deb Osswald manages IDC’s research on telecom industry business and operational practices and systems and contributes to the firm’s broad portfolio of network infrastructure market research. She is leading IDC’s telecom software research with a focus on delivering business value to clients through research efforts focused on communications service provider (CSP) investments in software-driven IT, including cloud and machine-to-machine (M2M) service enablement platforms, analytics applications and tools, business and operational support systems (BSS/OSS), service delivery platforms (SDPs) and next-generation policy management.

Three Certainties in Life – Death, Tax and CSP Cost Reductions

A trip to Orlando in November to experience the weather of an English summer had the added bonus of finding TM Forum’s Management World Americas in the wonderful Peabody Hotel and Conference Center.

Some clear positivity has been demonstrated in the telecoms IT industry over the last year. The “Cloud” has been gaining further momentum, machine-to-machine (M2M) is finding new innovative applications across enterprise verticals, and communications service providers (CSPs) are realising the value of eco-system-delivered services.

Amidst rapturous applause, Martin Creaner opened Management World Americas by acknowledging (for a change) that we all knew what challenges are facing CSPs and the market, and that vendors and OSS/BSS solution providers should be getting on with delivering innovation. He stressed that the event was all about putting competitive engagements to one side, collectively learning how peers are addressing challenges and how, by sharing ideas one or two times a year, everyone could really contribute to creating a better world—quite profound and worthy of a Nobel Prize, I think!

To summarise a relatively light-hearted introduction, Mr. Creaner recommended the following points of wisdom and focus for the coming year:

• CSPs will be concentrating on growing new revenues to combat declining asset value, whilst maintaining customer experience to minimise subscriber churn.
• New revenue streams will come from clever product bundling and marketing, service enhancements, such as location-based services, plus some early adopter M2M innovations (e-health etc.), which are great ideas but carry investment risk if they are not successful.
• Over-the-top (OTT) players are here and will not be going away, so CSPs need to fight for their place in the value chain. Making a broader portfolio available in the broader market is key, such as offering diversified services within the cloud.
• CSPs need to leverage their assets and operational experience to become cloud service brokers.
• Death, tax and CSP CAPEX/OPEX reduction are the three certainties in life.

Customer Experience Automation: Beyond the Order, Beyond the Trouble Ticket

By: Andy Hicks, Research Manager, EMEA, Telecoms, IDC

If your job involves talking to a lot of different people, you probably find that you end up saying a few things over and over just to lay the groundwork for whatever conversation you’re having. Since I’m a telecoms analyst, for example, I often find myself saying something like this:

“As an industry, we’re entering a whole new level of complexity on the IT side. We’re seeing an explosion of services, user types, devices, quality of service (QoS) levels and service level agreement (SLA) obligations. The permutations of all those factors make for more than any service provider can manage manually, so we’ll have to make sure that all that service and network management is automated to the maximum extent possible.”

So far, this is pretty unobjectionable stuff, and that’s the point. It’s something that most people in the industry can agree on before getting into specific cases. But as with its implementation, plans for automation vary both between carriers and within each one’s IT infrastructure. There is some common ground though. In the fulfillment part of the chain, one-touch provisioning and the like are generally accepted goals.

Where the promise of automation is still not as well understood, I believe, is in the service inventory, especially as it affects customer experience. Discussions of customer experience are often limited to either the fulfillment process (Is the order filled quickly and correctly?) and customer service (Is the problem resolved satisfactorily and cheaply?). Both the order and the trouble ticket are events, which are easier to measure and address. Extending the purview of customer experience to ongoing operations requires diagnosing and averting service problems before they affect customers. This requires systems to predict network and service outages in real time, and provision new resources to proactively fix the problem. The same components can also help engineers model the consequences of any changes to the system before they affect users.

The difference between “good enough” capabilities in this area and true differentiation in customer experience will increasingly inhere in the ability to model the effects of outages and planned changes alike on individual services and the individual customers that use them. Since each of those services is aggregate of smaller elements, and since the most valuable customers are likely to use the most services, a successful extension of the service inventory must be able to analyze the effects of system changes and failures not only on the network, but also on the services provided across it, especially as they affect the “gold” customer base. The criteria for that analysis will come from SLAs as well as service providers’ service assurance goals for each category of its users.

To date, Internet service providers and enterprise network providers seem to have more advanced offerings in these areas than mobile providers and fixed-line incumbents. As markets mature and competition in services increases from over-the-top (OTT) players, every service provider will have to improve its predictive and proactive capabilities to remain competitive in customer experience.

Andy Hicks covers telecom software, services, and business strategies in EMEA, with special focus on emerging markets, at IDC. Currently, he is focussing on the IT-ification of telecoms, the increasingly complex services market they compete in, and the work of multinational groups to rationalize their operations across borders.

Management World Americas Video: Diego Becker on Show Trends

Between meetings, presentations and all the other happenings at Management World Americas, we managed to steal a moment of time with Comptel’s vice president of the Caribbean and Latin America (CALA), Diego Becker, to discuss his thoughts on the event. Customer experience has been a common theme at the show, and in this short video, Diego expands on this and shares some thoughts on additional trends he’s seen arise from the event. Take a look at the below video for an update from the Management World Americas floor!

More from Management World Americas: Why Attend Tradeshows?

This was the question TM Forum’s president and CEO, Martin Creaner, posed during Tuesday’s keynote speech at Management World Americas in Orlando. He noted that almost everyone in the industry is aware of the current challenges facing and opportunities awaiting communications service providers (CSPs), from increasing pressure on revenues and the threat of cyber security, to the potential of data mining and the impact of new regulations. With competition at every turn, Creaner believes that CSPs must transform or risk being relegated into dumb pipe status—delivering someone else’s services to someone else’s customers for a low return.

And the real value of attending tradeshows and conferences isn’t to find out about these trends, but rather to explore how our peers are addressing them. And it seems that every CSP’s strategy is centered on growing new revenues while maintaining a superior customer experience.

CSPs are looking at innovative marketing techniques, new pricing models and more, in order to grow revenue and offset the erosion of traditional income streams. They’re also looking at innovative content services to generate complimentary additional revenue, with things like smart grids, M2M and mobile payments. These all have huge potential but also pose huge risks because, as Creaner said, you don’t know what you don’t know.

In that same vein, it’s a reality that OTT players and complex value chains have a distinct presence in the market, and the only way to assume a role here is if the CSP can add value. Creaner believes that the fact that CSPs own a network, or own lots of customers is not enough—to penetrate the OTT market, they will need to prove they are adding a particular value that the whole industry needs.

Ultimately, when it comes to maintaining and growing the customer experience, a holistic view is needed. CSPs must focus on end-to-end customer experience management and be in a position to manage service quality across the key value chains.

We’re excited to continue this conversation with colleagues and peers at the show, approaching Management World Americas and the ever-changing telecom world in general with an open mind.

Around the World

Connected Planet…
Analysis: Is Bill Shock Pressure Creating a Tipping Point for ‘Great’ Customer Service?
Alex Leslie predicts that customer experience will improve as a result of regulators’ efforts to lower bills for mobile usage. His article was published on the heels of new FCC and CTIA guidelines dictating that network operators send voice or text alerts to users as they approach data limits. Regulators in Australia, Asia and Europe are already following suit.

Even though regulations are often met with resistance, history shows that they can be beneficial in giving rise to improved solutions and services—and customer experiences. For example, previous rules about data usage and billing accuracy led to revenue assurance with communications service providers (CSPs) improving their billing strategies. Do you think history will repeat itself, with the new bill shock regulations opening opportunities for CSPs to differentiate themselves in the customer service department?

Light Reading…
Policy Is Still Strategic, But Changing
A survey by Heavy Reading shows that network operator executives expect policy management to gain importance, and predicts that a new generation of policy gear will be deployed to handle increased functionality. The survey results also reveal interest in using policy control to enable business models with third-party content, and mirror Comptel CEO Juhani Hintikka’s predictions that the next phase in policy control will take advantage of third-party applications with content prioritisation.

What these new business models require is more scalable policy technology that can integrate with charging and billing systems, so that operators have a wider range of triggers to drive policy, both in creating new services and in managing congestion.

Microsperience…
The Four Main Pillars of the Telecoms Customer Experience
Telecoms analyst Teresa Cottam writes that many CSPs are focusing on their own needs rather than looking at customer experience from the customer’s point of view. She says that there are four main pillars to the telecoms customer experience:

1)      Network Experience
2)      Commercial Experience
3)      Product Experience
4)      Service Experience

The pillars need to simultaneously work together while also being individually optimised in order to support the overall customer experience.  Even though customers should be the focus of the business, Teresa stresses that operators still need to be profitable. The key challenge is finding the right tools that will help CSPs improve customer engagement and at the same time, help them increase their revenue.