Leveraging The Intelligent Network Through
Superior Customer Service
BY JOHN KONCZAL, TELUTION
In the last five years, the communications industry has been turned
upside down. A new industry has emerged, spawned from deregulation and
propelled by the molding forces of competition, technology and powerful
market catalysts. Over the past couple of years, competitive service
pricing points and creative bundled service offers such as local phone
service, long-distance phone service, high-speed Internet access and cable
television have been the key methods used to win and retain customers and
grow a healthy revenue model. However, communications providers can no
longer rely on these methods alone for continued success. Service costs
can only go so low and bundling will eventually no longer be a
differentiator, but rather the norm. Moving forward, the companies that
will succeed are those that take a customer-centric focus by building an
interactive and dynamic customer-network relationship by leveraging the
vast network assets and valuable repository of customer information they
already have available, but are not exploiting.
Advancements in network technology are creating endless opportunities
and challenges for communication service providers, painting an
interesting picture of the state of the communications industry. Service
providers need to grow market share, revenue and profitability in order to
be competitive. This is occurring at the same time that pricing for
network services like connection and transportation continues to fall.
Yes, network technology is becoming less expensive, allowing providers to
operate a network at fractions of historical costs. But the lower
operating costs do not make up for the margins created by decreasing
product/service prices. Most providers have determined a two-prong
approach to combat this challenge.
Communication providers who will be the leaders of the next-generation
communications market will have realized that effectively using the
network technology available to them can create exciting products and
services to win customers and can help them build intimate
customer-provider relationships to retain them. Of the two, many providers
are finding that the latter is more difficult to accomplish. This article
will review some of the dilemmas providers face in leveraging their robust
infrastructures to create an intimate relationship between the provider
and the customers and will provide some key recommendations for
eliminating these obstacles.
Dilemma 1 � The Need To Expand And Promote Enticing Product
Offerings
In the not-so-distant past, entrepreneurs like Henry Ford took the
stance that customers could buy a Ford car in any color they wanted, as
long as it was black. Today, however, it is the consumer and not the
business that drives product availability. The future is clear �
customers demand options and providers not willing to accommodate them
will not survive.
As a result, while communication providers are working to effectively
bundle multiple products and services, simultaneously they must market to
insatiable consumer demands for new and exciting products. The results of
this product expansion include popular items such as personal digital
assistants and enhanced services, which �hook� more customers,
increase network volume and raise provider revenues.
However, there are both upsides and downsides to this methodology. On
the upside, most providers are finding that deploying the network
technology to support new services is a relatively straightforward affair.
Network infrastructure providers have excelled at building equipment that
supports quick deployment and true interoperability. On the downside,
regardless of the initial success of deploying new network technology,
even the most innovative products will fail without thorough integration
into customer service and sales channels. What most providers are finding
is that introducing new products and services into existing sales
applications and operations support systems (OSS) is extremely difficult,
if not impossible. The reason for this is quite simple. Most existing
communications operations support systems were built to support one or two
services � nothing more, nothing less. This prohibits these systems from
supporting the sales, ordering and provisioning of new services. In most
cases, providers are held back from offering new services because they
simply cannot order and provision service.
Obviously, the inability to order and provision service will prohibit
providers from leveraging available network technology to deploy new
services. Another roadblock in introducing new services is how they are
sold and serviced. An interesting conundrum is occurring. Service
providers are rolling out advanced services that take advantage of the
Internet (examples include DSL, wireless Internet access and voice over
Internet protocol), but cannot use this technology to sell to and service
customers. Customers become baffled when they realize that the provider of
the latest and greatest network service has not figured out how to
leverage this technology to enhance the ordering and support of the
service. Customers want to be able to do it themselves � order service
or view and pay bills � all over the Internet. They demand a customer
service experience that is advanced and as efficient as the new technology
they are ordering. The root of this problem is also with the provider�s
sales and operations support systems. The typical system was not
architected to support customer access to account maintenance and service
ordering functions and data via the Internet. Again, a service provider is
prevented from leveraging its vast network resources to enhance the
marketability of its new products and services.
Dilemma 2 � Getting A Better View Of Your Customers
Most service providers capture enormous amounts of data about their
customers (where they live, what services they want, how often they use
these services, paying habits, etc.) They are now beginning to see the
value of these data and how they can be used to drive a customer care
experience that builds a long-term, profitable subscriber base. However,
most communications providers are faced with the unfortunate reality that
they have built their businesses, especially their operations support
systems, on the goal of quick time to market rather than the goal of
developing an intimate customer relationship. However, in turn, this has
led most providers to deploy separate systems for sales, customer care,
service ordering and billing. Most providers have been able to integrate
these systems only to ensure the basics are supported, such as capturing
an order for new service and producing monthly invoices. They have not
fully integrated them to be able to leverage the data these systems
capture to provide enhanced customer service. Hence, even with the
multimillions of dollars that have been spent developing customer care and
billing infrastructures, the majority of providers do not have a unified
view of who their customers are, what services they buy, how much they
spend and what complaints or compliments they have about the providers�
services. The typical provider is unable to share customer information
across the enterprise to help build long, profitable customer
relationships.
Building The Interactive And Dynamic Customer-Network Relationship
To address these dilemmas and build an operations infrastructure that
enables a provider to take advantage of its vast network resources, a
provider must build an interactive and dynamic customer-network
relationship that provides the power to manage all aspects of how
customers are served at the touch of a button. Keys to building an
interactive and dynamic customer-network relationship are as follows.
Merging Front- And Back-Office Operations. In order for a
communications provider to be successful in the highly competitive
communications market, a fundamental change must occur in the way a
provider manages its front-office (sales and customer service) and
back-office (provisioning and billing) operations. To be successful,
communication providers need to leverage their most important asset �
customer data across the enterprise. One of the major tasks facing the
communications industry will be fusing the commonly disparate
front-to-back office triad of billing, order management and customer care
to power this new customer-centric focus. Service providers will struggle
to figure out how to merge the data from the multiple systems they have
deployed into a unified information model and then leverage their network
to push these data to multiple users � customers, customer service
professionals, marketing analysts and network professionals.
In addition, this model must be replicable and adaptable to new
products and services as they come to market. It is difficult to predict
which technologies will develop and when. Without a crystal ball,
providers must rely upon a system�s flexible architecture to ease new
product offerings into the marketing and customer service mix.
Enable An Interactive Value Proposition. The relationship with a
customer must be about more than just the initial service order or the
monthly bill. A customer relationship is about listening, understanding,
changing and responding appropriately. The physical bill should be a means
to an end and a way of enhancing the relationship, but cannot be the end
itself.
Communications providers must be interactive with a customer, using
every interaction to build a stronger relationship with the customer as an
individual. Part of being interactive means having knowledgeable people to
manage the customer interaction, including the right customer relationship
management (CRM) system to enable service professionals to be successful.
The CRM system must be flexible enough to allow the gathering of any type
of information, which may help foster a stronger relationship. The end
goal is not just to be able to provide the elusive �segment-of-one�
targeted marketing, but more importantly, to change the nature of the
relationship. Providers must focus on replacing the shallow and easily
switched provider-to-customer relationship with a more permanent,
high-switching-cost alternative of friend-to-customer. If a customer
perceives value in the relationship he or she has with the communications
provider, the switching costs are much higher, and churn much lower, than
when he or she views the relationship as a cold, commodity service, price-
sensitive interaction.
Provide Choice And Flexibility. Communicate with customers
anytime and anywhere. Customers should be able to define their preferred
mode for communicating with the provider. They should be offered choices,
wherever feasible, so they can design their own relationship. Options are
the key. Some people like to speak live to a call center representative.
Some prefer a voice response system. Others want to interact exclusively
over the Web or through Web TV and manage their relationships at 2:00 a.m.
An effective provider must discover how to use its network and systems
capabilities to accommodate these various needs and give the customers
choices�all the while learning from the choices customers make.
A Holistic View Of The Customer. To maximize the potential of
any interaction, the provider must gain a holistic view of the customer.
The service provider must view every interaction in the context of all
other interactions and piece together an understanding of the customer in
light of these small interactions. This means that service professionals
must have access to all information about a customer at the click of a
mouse. Examples of this interaction include access to:
- All demographic information,
- All past and current billing information,
- All order information, for both existing and pending orders,
- All trouble ticket information, and
- All information regarding past calls, when they logged in using the
Web and what their needs are.
A Checklist For Success
In the new communications marketplace, a provider�s business will
inevitably change. Rivals will become partners. Partners will become
competitors. Customer demand will become increasingly intense and customer
choice will need to be increasingly extensive. Inevitably, operations
support systems and people will struggle to keep up with new demands and
new business strategies. In 2000 and beyond, the successful communication
service provider will use its network and operations infrastructure to do
the following:
- Fuse disjointed billing, order management and customer care systems
to service customers expeditiously and efficiently while inherently
providing the ability to support new products and services,
- Provide a unified information model across multiple business lines
to create unlimited opportunities for using customer and operational
data to improve and grow business,
- Create an interactive value proposition for customers and partners
by Web-enabling ordering and billing functions to increase customer
satisfaction and operational efficiency,
- Enable an integrated supply chain with trading partners to
significantly decrease service delivery times, and
- Deploy a robust, network-centric operations support systems
architecture, which provides a long-term solution that enables service
providers to scale in terms of size, performance and functionality.
Service providers who realize that a renewed and intensified focus on
customer care is the linchpin of success will be the only ones left
standing after the communications war.
John Konczal is vice president of business development
at Telution, a Chicago-based
provider of applications and services which foster enterprisewide
communications to drive customer service and operations for
next-generation communications providers.
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