How To Win The Digital Revolution With Edge
Telcos are experiencing disruption coming from advances in digital technologies, transforming the environment they operate in. The industry is encountering a period of slow decline, with revenue growth and cash flow margins all deteriorating in the past 5 years. Social media also poses a threat, offering an alternative to traditional communications channels. However, this also presents an opportunity for telcos to adjust their positioning through the creation of inventive product offerings and making the most of emerging digital technologies such as SDN and NFV.
Edge is a visualisation and integration tool, allowing organisations to make the most of their data and IT systems. The software helps organisations to improve their understanding of the live operational picture, reduce reaction times to issues and improve overall end-user experience. With advances in digital technology coming so rapidly, it is now essential for Telcos to keep on top of their systems in order to react responsively.
Prosper from the Digital Revolution
In order to be able to keep pace with ever-changing digital technologies, you may consider revamping your IT systems to a more flexible and streamlined approach. Legacy IT systems can pose difficulties when competing against more responsive organisations. By removing any redundant platforms and any overlapping capabilities, your IT systems can perform to their potential without wasting resources on redundant systems. This will not only reduce costs due to the increase in efficiency from IT resources but should also allow for faster responses, in turn improving customer satisfaction, for example, any issues with the network would be remedied promptly if the correct IT systems are in place.
Edge allows users to maximise the output from legacy systems through visualisation. Further to this, the software improves integration between systems, even if they may not naturally integrate. Integrating your IT systems allows you to be much more reactive to changes that you may need to act upon quickly.
Minimise Production and Delivery Costs
Using automated, low-touch processes throughout the customer journey will reduce costs throughout production and delivery. Speed to market is essential to take advantage of new digital technologies and to meet increasing customer demands when it comes to speed and responsiveness. In order to increase speed to market, consider offering a product that may not fully integrate into legacy systems, but potentially running on separate infrastructure that allows for a quicker release. Separate infrastructure may traditionally make processes slower through having numerous sign-ins. However, Edge bypasses this with a secure single sign-on. The visualisation tool acts as a single pane of glass to visualise a number of separate stand-alone IT systems. By drawing together your IT systems, it allows the operator to view the overall picture, allowing for quicker responses. Something that customers are expecting due to the speed that digital technologies allow.
No matter who your customer is, chances are that they are now researching your products online before making a purchase – whether the final transaction is in-store or online. Because of this, cross-channel pathways should always be made available to customers to provide a seamless experience to suit all preferences. As more individuals complete the customer journey using some form of digital service, multi-channel sales should be used, focusing on developing digital channels, whilst still maintaining traditional sales platforms. Investing in digital sales platforms can increase revenues by up to 30%, also reducing commercial costs by a similar amount.
As well as increasing in popularity for sales, digital has also become the leading channel for customer service. Research conducted by McKinsey & Co from a sample of telecom companies across Europe suggests that 89% of customer service journeys are either fully or partly online. Combining customer services with digital technologies can reduce call volumes and therefore operating expenses, as well as improving customer satisfaction as digital-only services have been found to be preferred by many customers.
To reduce customer turnover, network operators can use various analytics methods to make more informed marketing spend decisions. This can identify customers who are at risk of leaving before they even consider doing so, allowing you to target your customer retention efforts at these groups to reduce customer turnover levels.
Start with the Customer and Work Back
Advances in digital technologies allow for new opportunities to engage with customers throughout their journey, but they also increase customer expectations at the same time as digital tech enables faster responses and levels of service. Therefore, it is essential to fully understand the customer and their experience of the whole customer journey. By going through the process from the initial contact to completion, you can then optimise and digitise a number of elements to deliver superior customer experience, reducing pain points for key segments.
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(Content adapted from original article found at http://www.mckinsey.com/business-functions/digital-mckinsey/our-insights/how-telecom-companies-can-win-in-the-digital-revolution)