08/28/2024 | Press release | Distributed by Public on 08/28/2024 14:59
Intense competition. With several large wireless providers in the U.S., and even more mobile virtual network operators (MVNOs), customers have more choice than ever. Newly integrated 5G networks provide excellent coverage and speed in all markets, making it harder for telco operators to stand out from competitors. Because of this shift, CX has become the primary competitive differentiator.
Competition drives the need for deeper engagement with customers. Customers expect the ability to interact with their wireless, internet or cable provider through quick, easy and convenient channels. In fact, they're expecting service as seamless as it is with digital native disruptors such as Netflix or Amazon. Telecom or cable operators that don't meet consumer expectations are at risk of losing business.
Limited, holistic view of customer needs and expectations. Telecom providers have vast amounts of customer data stored about their customers, including how customers use their services (i.e., usage data), their interactions with the company and their billing details. Many CSPs find it challenging to analyze this data to gain insight into customer behavior, preferences and expectations. Without this knowledge, it's difficult to meet customer expectations and needs.
Slow digital transformation. According to a Statista survey, 70% of U.S. consumers expect to receive a customer service response the same day they submit one. Digital self-service is an effective strategy companies can offer to provide this information quickly. Yet mobile network operators lag behind other industries in digital transformation and are at risk of losing customers because of it. According to the 2022 State of Customer Loyalty and Churn in Telecom report, 17% of telco customers who churned did so because of a lack of self-service options.
Increasing infrastructure and operating expenses. CSPs must invest heavily in the costly infrastructure required to serve their customers. According to PwC, as the transition to 5G continues and newer technological standards gain traction, telcos are projected to invest $342.1 billion in their networks in 2027. Consequently, operators feel pressure to improve operational efficiency, boost monetization and control costs. High call center volumes, growing expenditures for technology/system maintenance and processing, and rising energy prices make cost control challenging.
By mapping telecom consumer journeys, CSPs can take steps to overcome these challenges.