In “Hello, mobile operators? This is your age of disruption calling“, McKinsey confirm our research that Customer Insights are a primary differentiator for Telcos in the age of Digital.
“For the better part of a decade, telecom companies have suffered through declining revenues, cash flow, and return on investment just as tech companies like Google, Facebook, Amazon, and others have mushroomed by building their businesses on the operators’ own infrastructure. While these tech visionaries have enjoyed well over $1 trillion in combined market-cap growth by innovating and thinking differently and adeptly, telecom companies have tried to compete by implementing the same old survival tactics: cutting costs, reducing the workforce, and timidly entering into new business adjacencies. The trouble is that playbook no longer applies.”
McKinsey go on to recommend identify three sources of competitive advantage for Telcos in the age of digital, the first of which is:
“Consumer insights. Operators can learn from asset-light OTT players that are generating strong top-line growth and returns based on world-class understanding of customers. Deep customer insights enable operators to customize product offerings, tap new marketing channels, and ultimately offer better, more personalized service. Operators ought to reflect on the question, Can customer insights, understanding, and relationships become meaningful sources of additional, or even substitutional, value? This will undoubtedly require new forms of investments and talent, requiring other areas to yield investment funds, but given the plethora of unexploited customer data sitting with operators, it seems it is a chance too good to miss.”
The article calls for a fundamental change in thinking and direction for Telcos in the age of digital and ends with,
“Telecommunications is no longer only about operational excellence. It is increasingly a matter of vision and strategic choice.”
Contact us to ensure you concentrate on the right Customer Insights to drive your investments and Digital Transformation.