Teradata: Telcos can’t afford to wait on CX digitalisation

Ruth Gordon, Director of Industry Consulting at cloud data orchestrator Teradata, warns that, at a time when consumer expectations of customer experience (CX) are on the rise, telco customer and digital teams are at risk of missing an opportunity to improve top- and bottom-line financial metrics through failure to provide a consistent and seamless experience for end-users.

In a discussion with TelcoTitans’ Vendor Voice, Gordon suggests that a striking impact of the COVID-19 pandemic on society has been the creation of deeper relationships between consumers and technology. “This has created challenges”, she says, “but also a real opportunity to engage with customers in a better way and more directly”.

Gordon considers that a significant competitive advantage can be gained by embracing customers’ digital enthusiasm. For operators seeking to make the most of digital CX, the financial services sector is providing a valuable template for transformation.

“Companies that have been very data-rich in the past, in areas such as the banking sector, are at the forefront right now in providing one-to-one real-time personalisation, and there are operators doing some very clever stuff around personalised targeting as they move in the same direction.”

Gordon.

Particular challenges for operators are ensuring that they draw on all the data at their disposal, and that CX is neither confusing nor disjointed. Addressing these, Gordon believes, requires a fresh mindset and approach to managing infrastructure and data architecture, with considerable rewards available.

“Companies that are getting this right are seeing much higher levels of Net Promoter Score [NPS], much higher levels of engagement, significant reductions in churn, and improved marketing efficiency.”

Gordon.

Customers expect consistency, but too often get confusion

Gordon considers that newer, digital-first businesses have created a standard for digital CX that traditional players in the telecoms sector, and elsewhere, are largely yet to match.

“Tech disruptors have set the bar high. Consumers need to know that they can trust the brand that they’re engaging with. They need to know the operator is going to deliver what it promises, and do that at every touchpoint.”

Gordon.

This level of capability is not widespread, with Gordon citing findings from recent CX audits she has overseen in the UK. These find a lack of relevance and consistency across businesses’ delivery of consumer CX, particularly in multi-channel environments.

“Across the board, there are fundamental gaps in the cross-channel experience, with very little evidence that organisations know the customer as an individual.”

Gordon.

Operators are already adopting more customer-centred strategies, but the transition remains a work in progress as they move from a focus on individual products and their associated profit and loss accounts that are organised in silos with limited alignment.

Gordon warns that this journey may be hampered by legacy systems, as well as related culture entrenched within organisations.

“Operators have this accidental architecture, with data spread across multiple systems that are not purpose-built and this really separates them from tech disruptors who’ve been able to build from scratch.”

Gordon.

Best-in-breed not always the operator’s best friend when disjointed

The accumulation of platforms and technologies contributes to the challenges faced by operators, even when the systems are best-in-class, ‘safe bet’ solutions.

With telcos having as many as 30 different marketing technology tools (and still counting), best-of-breed applications are “just adding to the confusion”, according to Gordon. She gives the example of a customer who visits a website for information but is then contacted by a call centre to ‘follow up’.

“If you’re using two best-of-breed, but separate, solutions in those environments, you’re working on partial data in both places, and missing the context of the interaction.”

Gordon.

The answer, though, is not to abandon the investment in these capabilities but to ensure there is a unifying architecture that ensures all relevant data is available through all channels. “Don’t replace the tools”, she guides, “the tools are great — just don’t just let those tools sit on partial data sets”.

Intelligent orchestration to address accidental architecture

Gordon advises that, after having ensured that customers are opted-in for sharing data, it is essential to bring together interaction and transactional data, including real-time supply chain data on availability of stock in stores.

“This is fundamental. You need to build infrastructure that allows you to intelligently orchestrate that end-to-end customer experience, and to be there with relevant and useful content. You need to understand where the friction points are in that customer journey, and where customers are dropping off because they’re experiencing pain points.”

Gordon.

An overarching data structure is vital because the emergence of data silos is virtually inevitable, according to Rob Anderson, Lead Solution Architect at Teradata.

As well as silos developing with the arrival of new tools and vendors, organic activity can spark new instances.

“There’s always new silos popping up elsewhere. Why not manage that all together, orchestrating those silos in one organisation, and benefit from the efficiencies of consolidating operations maintenance, software management and security?”

Anderson.

Providing this unified data access in an environment where operators are dealing with numerous platforms and technologies, and with data stored on the cloud, on-premises and in hybrid arrangements, is key. “You can’t do all of these things independently of each other”, stresses Gordon, “you need to be able to have complete data visibility, and intelligent orchestration is fundamental to that”.

Matt Stubbs, Sales Director at Teradata, also highlights the rewards available to operators that commit to modernising architecture in a way that sees “customer experience driving it”.

“Of course, there’s a requirement for investment, and there’s change —culturally and organisationally —but, if you get it right, and you put the customer and customer experience right at the centre, you can achieve some big objectives. Not just improving customer experience and NPS, but, ultimately, if you look at the key metrics for finance, you start to see customers voting with their subscriptions. You see what that means in terms of your share price and the other positives that come on the back of growth.”

Stubbs.