Telecommunication Industry Trend
The biggest magic in the telco industry is the evolution from 2G to 4G LTE. 4G LTE delivers more capacity for faster and better mobile broadband experiences, and is also expanding into new frontiers. Two potential areas of focus in the coming years are Content & the Internet of Things (IoT). The long-standing promise of delivering content to any screen is finally becoming a reality, enabled by advances in network technology and higher speeds, as well as enhanced content at the carrier level, whether owned or resold.
Recent innovations and gaps
The evolution of telecommunication infrastructures and capabilities have seen a shift from traditional media towards digital. From 2007 to 2015, we have seen a sharp growth in mobile users from 400 million users to 1,900 million users. People are now leveraging on the internet for almost everything, from information to entertainment, shopping, communications and etc. In the process, the amount of data that could and haven’t been collected from these activities has grown exponentially.
With these huge data sets on hand, businesses have the ability to develop strategies that would help them solve existing problems, create opportunities and achieve their goals and objectives. The key to this is, how could we find what we want from this mass amount of both structured and unstructured data sets? However, with digital, the amount of data that we are collecting yearly has continued to grow exponentially. This brings another problem to the equation. Will humans be able to manage this volume of data, efficiently and effectively?
Strategy, Benefits, Risks & Challenges
In order to capture new clients and improve customer engagement, telecommunication companies should look to leverage data-driven strategies to understand customer behavior and improve user experience across all touch-points.
- Data analysis enhances sales strategy
With the advancement of technology, customers nowadays engage with various online and offline channels before they make a decision. Digital touchpoints now influence customers’ preferences and decisions across the whole consumer journey. They look for physical products in store and then make a purchase online, and vice versa.
Omni-channel sales are more than stores plus online shops. The transformation of customer journey pushes the radical reform of physically stores, with the goal to connect with digital and drive more customers to convert online4. As telecommunication service providers, link in-store shoppers with online behavior which helps better understand their needs and path-to-purchase behavior so as to provide personalised promotions and offers.
- Digitalisation in customer care service
The huge amount of data stored by telecommunication service providers help understand the customers and build digital relationship. To provide a better user experience, all customer support channels, including online, mobile and physical stores, should be integrated digitally and maintained in a centralised data. The customer relationship management systems should create a profile for each customer to track their digital footprints, analyse their data and predict their needs effectively.
In order to facilitate the integration of telecom services into customer digital lives’, telecommunication companies should look to leverage digital channels and technologies (E-chat, forum, virtual assistant, messaging systems etc.) that could provide exciting, timely and personalised experience 24/7.
- Look at each customers
Telecom companies has to understand the situation and their service is not more. Once the user increases, their service also has to be dialogue. They have to set different service for each customer. In order to understand the each customer, they should look at generation such as M/F-1 to M/F 4 and find out what they want/like. For instance, F1 user are appending more time on Social network and F4 users are more using Desktop than Mobile. Telecom companies has to customise their communication by generation.
Research by Mckinsey has showed that 76 percent of customers are satisfied with digital-only service, compared with 57 percent for traditional channels. The more digital the journey, the higher the satisfaction.
Benefits of using data
When there was no internet, users searched for latest items by exploring department store physically, following WOM and reading magazines.
However, thanks to data and digitalisation, consumer journey can now be tracked such as how many hours and how users are consuming Internet, which website they are seeing as well as their personal data. As we talked in previous the paragraph, the communication way has to be a dialogue by looking at each group of people. We are able to customise communication way by seeing the whole customer journey by data.
There is one big challenge in data use/span>
Although we are exposed to a huge data lake, some of us are drowning in the data. Now, we all know that Omni channel customer experience is important but the questions remains — are we drowning big data? As shown in graph above, only a handful have managed to exploit the power of data. We have more options than ever to analyse data but we have to decide what is the KPI or most important indicators to our main objectives and goals.
Risks of leveraging on big data
In 2014, eBay was hacked and 145 million user information such as password, email, registered address as well as customer’s name. Once a company turns big, there is a chance to be targeted for cyberattacks. If a company leaks the customer information, their business could be facing a hard time. To protect customer as well as the corporation itself, a solid security system needs to be created.
With 4G deployments expanding and 5G technology under development, governments and industry are already considering the shape of Smart Cities and the network-enabled Internet of Things with a strong regulatory framework in mind. Major areas of potential implication include:
- Access regulation
The digital ecosystem is made up of complementary information technologies assembled into platforms that perform useful functions and create economic value. At some countries, telco players are required to lease their infrastructures or offer their services to competitors at mandated prices.
- Privacy & data protection
By contrast, the new regulatory framework principles argue in favor of a technology and business model-agnostic approach to privacy regulation, which focuses on the ways in which data is collected and used.
At the same time, concerned consumers want to be sure that their information is protected and that it is not used inappropriately. It would recognise the need to apply specific protections to certain data (e.g., financial and health data) and to certain uses of information (e.g., for credit, employment and insurance), regardless of the ‘sector’ occupied by the company collecting it or the technology by which it is gathered.