
17 | What customers really want – A customer-centric strategy for telecom operators
At the start, the operator sets certain objectives (e.g. quantifying customer
responses to new tariffs). Then it adapts its business processes, data collec-
tion systems, links and usage. In the process, management should evaluate
each initiative from the customer's point of view (e.g. the customer value
generated by a new tariff). As soon as the goal is clear, high-quality data can
be generated to meet the objectives set (e.g. customer call center feedback
on the new tariff). If the data is consistent and available, it helps to further
automate customer handling.
As the organization moves along, management can draw conclusions from
customer responses. These findings will then be integrated into the next
decision cycle (e.g. tariff optimization in the next round). The whole organi-
zation is gradually moving from stage to stage, gravitating toward customer
centricity.
European operators are at different stages of the model, and in reality, the
transition between the stages is not rigid. Most operators more or less suc-
cessfully collate information in centralized data repositories. They also ana-
lyze information in the functional units applying a linear operation, e.g. for
retention campaigns. A few operators are implementing interactive opera-
tions and data strategies, while not a single telecom operator has end-to-end
holistic operations throughout its organizations. As described in chapter 1.3,
players such as Apple, Google and eBay are a few steps ahead on their way
to holistic operations, thus stepping up the pressure on telecom operators.
As even more yet unknown players may enter the market, telecom operators
should create the final stages of customer centricity fast. Whenever possible
several stages should be implemented in one go. To fend off hostile competi-
tors and devise truly sustainable strategies, they must start off with a holistic
customer understanding based on reliable databases.
The drive toward customer centricity calls for the entire management's
attention and must involve everybody in the organization. It extends beyond
strategy and top management and goes all the way to include incentive sys-
tems for managers and employees. They must be adjusted in line with, and
linked to, customer-related criteria.
The major stages on the way to full customer centricity are described in the
following sections, illustrated with various examples of telecom operations.
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