New metrics needed as telcos go up against Apple, Google, Amazon

Written by on June 2, 2015 in News with 0 Comments

online-ad-pay-per-clickTelcos are now being judged for their customer experience against not just their rivals in the sector but top-ranked customer brands like Apple, Google and Amazon, according to Salesforce global comms and media industries group SVP Andy Baer. And Baer argues that as the telecoms industry continues to pivot towards the consumer, it’s time to look beyond the yardstick of the Net Promoter Score into more advanced customer experience metrics.

Salesforce has a lineup of top Australian telcos on its client roster including Telstra, Optus and other large players; Baer told CommsDay that the increased focus on the customer in telecoms was happening not only in Australia but worldwide. “Communications companies, like many industries, are not just being compared to each other – their customer experience is being compared across industries. Customers’ expectations are that the way all companies deal with them will be at the level of the best companies they deal with… Apple, Netflix, Google, Amazon for example,” he said. “That’s the bar today for customer experience, and communications companies all over the world are pivoting to improve customer experience so that they can meet that expectation.”

Telcos, continued Baer, are now looking to simplify the customer experience – everything from more transparent monthly plans to more straightforward inquiry resolution – but must also shift towards an ‘omnichannel’ strategy for engagement. “Customers today expect you to know them, they expect you to give them control, they expect you to help them as a team across channels, and they expect you to adapt to their situation,” he said. “[It’s] a shift from thinking about how you want your customers to interact with you to thinking about allowing your customers to interact with you in the way they want.”

And to better assess customer experience, Baer argued for a move beyond NPS to a more sophisticated metric. “Certainly NPS is one measure that you want to have, but NPS is a holistic measure that’s influenced by more than just customer experience; it’s influenced by your products, it’s influenced by a lot of things. There is a relatively new metric… called the Customer Effort Score. And I’m a big fan of that metric because it truly focuses on how easy it is for your customer to do business with you,” he said.

“[CES] measures the amount of effort it takes to do business with you as a customer, whether it’s acquisition transactions, service transactions, payment transactions… what we’ve seen, especially in the communications industry, is that those companies that have started to measure customer effort and to focus on reducing it have not only seen a correlation with an increase in NPS, but in many cases have seen a correlation to increasing ARPU,” concluded Baer. “ Customers that are happy buy more from you; [and] customers that find it easier to do business with you feel comfortable buying more from you, so they’ll add products to the mix.”

Written by Petroc Wilson and first published at CommsDay. Reprinted here with their kind permission.

Comment: This is why Nokia did this!


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