Editor’s Note: Welcome to our weekly Reality Check column where C-level executives and advisory firms from across the mobile industry share unique insights and experiences.
Telecommunication providers are typically our go-to source for the latest smartphones and tablets. Yet, even though selling mobility has become the core business for most telcos, few have harnessed the power of mobile technology for themselves.
Worldwide, telcos face a raft of challenges. Growth from mobile phones has plateaued, with cellphones already in most people’s pockets and purses — even in emerging markets. Competition is brutal. Over-the-top providers are thriving. Every telco needs to boost efficiency and slash costs to stay in the game. A recent AlixPartners estimate claims that European telecom operators need to shed $127 billion in annual operating expenses. That’s about $14 per month for every man, woman and child in Europe.
A recent IBM survey of 22,000 consumers in 36 countries found that telcos average a score of -19 on a commonly used measure of customer loyalty. In contrast, well-known consumer companies across a range of industries, including Amazon.com, Apple, Costco, Southwest Airlines, Starbucks, USAA and Weigmans consistently score 60 or above on the same measure.
While customer service is one area that telcos can ill afford to trim, mobile technologies can be applied to make customer service employees more effective. In the telecom field (like many others), customers are more satisfied if their problem is solved quickly with minimal customer-service face time. Done right, that also cuts costs for the telcos.
Field workers are at the front lines of customer service for telcos and therefore need to be empowered to better serve customers. They require mobile applications that offer easier access to information that resides in corporate data centers. Data warehouses link customer sales information and records of previous complaints to service orders. By using predictive analytics, the telco knows what the most common causes of problems are for each type of setup or modem.
A mobile app could allow a service technician to arrive at the customer site already knowing the likely cause of the problem and have the parts needed to deal with the issue. The technician could then swap out and replace the setup within 30 minutes. There would also be an app that identifies the next assignment and the technician with the experience and equipment needed to address the ticket. Using GPS, the app would steer the repair truck to the next house and automatically call or text the homeowner 15 minutes prior to arrival.
The app in a scenario like this saves the company money because it shortens service time calls allowing one truck to handle many more calls per day. The customer is happier because the app predicted how long the repair person would be at each site. And instead of a four-hour wait window the customer only had a two-hour waiting period. Also, the problem can be fixed without a second visit, saving money for the telco and avoiding customer frustration.
There are several other ways that telcos and their employees can benefit from app-based information. For example, the field service that maintains and upgrades cell phone towers could handle problems faster with in-hand access to all the data the company has about the site, including past problems. Sales people, in both internal and partner sales offices, could better placate irate customers by quickly accessing their file to see that they have already called three times about an issue.
Creating apps that integrate the intuitive ease-of-use of a smartphone or tablet with the data infrastructure of telco operations has the potential to dramatically change the way telcos do business. The telcos that embrace mobile applications will cut costs, improve customer service and improve their competitive position.
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