The Myth of Digital Transformation in the Global Telecoms Industry

New research finds leading telco providers' "one size fits all" strategy is failing consumers

Apr 22, 2016, 09:00 ET from Now Interact

STOCKHOLM, April 22, 2016 /PRNewswire/ --

Research from leading omnichannel technology provider Now Interact has found that, despite customers demanding a personalized service online from their telecoms providers, the majority of brands are still adopting a 'one size fits all' strategy. The research analyzed the customer journey and contact channels offered to visitors on the websites of 54 leading telecoms companies across the US and Europe.

"Digital transformation is at the top of the agenda for the telecoms industry, but the reality is that the majority of brands say the right buzzwords but aren't in fact transforming their outward service offering to customers" said Magnus Astrom, CEO and founder of Now Interact.  "Satisfaction with telcos is consistently low. Ignoring this essential area, primed for change, is standing in the way of the success of any digital transformation project".

The research uncovered three key areas where telcos are lagging behind customer expectation:

  1. Telcos drive web traffic to the call center. 39% of telcos analyzed display a phone number on their homepage; with a further 20% after one click.  Instead of encouraging visitors to self-serve, or allowing customer data trackers to learn from the customer journey and change the site to better service each visitor, more than half of the telcos researched are displaying their number at such an early stage in the consumer lifecycle that they are just encouraging visitors to pick up the phone to complete their journey. This unnecessarily increases call center costs, and reduces the effectiveness of the webstore.
  2. Telcos are ignoring the data at their fingertips. Despite 56% of telcos analyzed displaying a phone number within the order flow, only 6% connect the visitor directly with a call center agent. Half of the telcos researched force visitors on a cross-channel journey to repeat steps already taken, rendering their online journey useless.  
    Telcos aren't taking advantage of the wealth of data regarding the online journey provided by the 18 (average) customer data trackers running on their websites. Instead of using this knowledge to deliver a meaningful experience during a connected call, most telcos simply ignore the data in favor of a "cold" call.
  3. Telcos are failing to proactively engage with their online visitors. Budget for digital marketing technology has steadily been on the increase over the past few years for telcos. However, the value of these investments is limited if the tools aren't used in the correct way.
    The research found that 78% of all channels offered to website visitors were offered in a reactive way - visitors have to seek out a channel in order to use it. Even though telcos are investing in the latest and greatest technologies such as live chat, they are mainly only making them available in a static way. In some cases, our research uncovered brands which offer a channel that is permanently offline, leading to a disappointing experience to visitors that prefer this channel.
    A mere 12% of channels were offered proactively. The telcos with proactive channels have successfully invested in technology that learns from the data collected and tailors the channel offering to visitors on site.

An infographic summarizing Now Interact's research is available here.  The full research report "The illusion of digital success in the telecommunications industry" is available to download here.

About Now Interact: Now Interact creates Predictive Intelligence applications that use both online and offline data to enable the next generation of personalization. Now Interact uses machine-learning algorithms to offer brands a unique approach to bridging the gap between online and call center operations, offering technology that optimizes the combined revenue from these operations whilst at the same time lowering overall cost.  Now Interact works with over 50 innovative broadband, e-commerce, energy, financial services, insurance and telecom company; helping them harness the power of real-time customer data to deliver an excellent customer experience.

SOURCE Now Interact