Beyond transactions: Creating value through customer partnerships in telecommunications

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Beyond transactions: Creating value through customer partnerships in telecommunications is an Economist Intelligence Unit report sponsored by SAP. The Economist Intelligence Unit bears sole responsibility for this report. The Economist Intelligence Unit’s editorial team conducted the interviews and wrote the report. The findings and views expressed in this report do not necessarily reflect the views of the sponsor. Dan Armstrong was the editor of the report and Dorian Benkoil as the author. Mike Kenny was responsible for layout and design. Our thanks are due to all of the executives who responded to the survey.

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Beyond transactions: Creating value through customer partnerships in telecommunications

  1. 1. Beyond transactionsCreating value through customerpartnerships in telecommunicationsAn Economist Intelligence Unit white paperSponsored by SAP
  2. 2. Beyond transactions Creating value through customer partnerships in telecommunications Preface Beyond transactions: Creating value through customer partnerships in telecommunications is an Economist Intelligence Unit report sponsored by SAP. The Economist Intelligence Unit bears sole responsibility for this report. The Economist Intelligence Unit’s editorial team conducted the interviews and wrote the report. The findings and views expressed in this report do not necessarily reflect the views of the sponsor. Dan Armstrong was the editor of the report and Dorian Benkoil as the author. Mike Kenny was responsible for layout and design. Our thanks are due to all of the executives who responded to the survey. September 20091 © Economist Intelligence Unit Limited 2009
  3. 3. Beyond transactions Creating value through customer partnerships in telecommunications Contents Introduction 3 Key findings 4 Conclusion 8 Appendix 1: Overall survey results 9 Appendix 2: Americas survey results 14 Appendix 3: Asia-Pacific survey results 19 Appendix 4: EMEA survey results 242 © Economist Intelligence Unit Limited 2009
  4. 4. Beyond transactions Creating value through customer partnerships in telecommunications Introduction While battling the global recession, the telecoms sector has registered some positive results. According to Gartner, a market research firm, global shipments of smartphones will increase by 27% to 177m units in 2009. There has been a corresponding rise in the sales of data services. Yet the industry is not recession-proof. IDC, another research firm, predicts that global handset sales will decline by 13% in 2009, as consumers become more reluctant to replace them during difficult economic times. Mobile-phone penetration is at an all-time high. But the pool of new customers in developed countries is shrinking. Commoditisation has been an ongoing problem for telecoms firms. Despite the proliferation of products, the distinctions among brands continue to erode as customers base purchasing decisions on price alone. Indeed, according to a survey of telecoms firms conducted by the Economist Intelligence Unit, 67% of respondents agree with the statement, “Consumers view my organisation’s products and services more as commodities than five years ago.” In an effort to attract and retain customers in a shrinking customer base—and in a chaotic business environment—survey respondents say they are strengthening customer relationships and collaboration. There is room for improvement, however, in their integration of marketing programmes and campaigns across multiple telecoms services, and in measuring and analysing customer behaviour. About the survey spanned the globe, with 32% from the Asia-Pacific region, 28% from the Americas and the rest from EMEA. Annual revenues ranged from less than US$500m In July 2009, the Economist Intelligence Unit surveyed to more than US$10bn. The level of seniority of 93 telecoms executives on the challenges of getting respondents was high: 30% were C-level or board customer-facing departments to work together more members, and another 21% were vice-presidents or consistently and effectively. Survey respondents heads of business units.3 © Economist Intelligence Unit Limited 2009
  5. 5. Beyond transactions Creating value through customer partnerships in telecommunications Key findings Confronting the challenge of commoditisation That 67% of respondents say their products are perceived by customers more as commodities than five years ago is perhaps the most striking finding from the survey data. Consumers see little difference between brands and ultimately make purchasing decisions based on price. The effect of commoditisation is a decrease in profitability and a higher premium on creating and promoting innovative design. Declining prices require companies to increase the number of customers just to say in place. The value of each customer increases, and customer retention becomes critical. Survey respondents recognise this imperative: they consistently report that interactions with customers are critical to their organisations. Sixty percent have developed stronger customer relationships in the past 12 months despite the recession, and 47% are more engaged in developing products or services collaboratively with customers. Respondents’ organisations are also improving consistency and ease of accessing information throughout customer touch-points, with 52% improving online or self-service product support tools and 50% investing in self-service tools across multiple channels. Forty percent are improving the search and navigational functions on their websites as well. And most respondents are developing social media strategies to better monitor and interact with customers. Measuring customer behaviour With competition growing, it is also critical for companies to focus on customer retention. To do this, according to survey respondents, telecoms firms most need to improve data-mining capabilities. In an industry in which long-term contractual arrangements are common, 56% of survey respondents do not have an accurate way to measure the lifetime value of customers, and only 36% say their organisation prioritises sales and marketing resources based on each customer’s lifetime value. Respondents also cite cross-selling or upselling customers (36%) and targeting the right customers in order to close a high percentage of prospects (36%) as activities that require improvement at their organisation.4 © Economist Intelligence Unit Limited 2009
  6. 6. Beyond transactions Creating value through customer partnerships in telecommunications Do you agree or disagree with the following statements? (% of respondents who agree minus the % who disagree) Customers view my organisation’s products and services more as commodities now than five years ago Despite the recession, my organisation has greatly strengthened customer relationships over the past 12 months Compared to our competitors, my organisation’s customers are more loyal We are more engaged in developing products or services collaboratively with customers than we were 12 months ago My organisation has more flexibility than its competitors in pricing its products Our margins are higher than the margins of most of our competitors We are currently developing a social media strategy My organisation prioritises sales and marketing resources based on each customer’s lifetime value My organisation has an accurate way to estimate the lifetime value of customers In chosing to do business with my organisation, price is the single most important factor most customers consider -40% -20% 0% 20% 40% 60% Source: Economist Intelligence Unit survey, July 2009. Integrating customer-facing activities In naming the biggest benefits of integrating their organisation’s sales, marketing and customer service activities, survey respondents cite making each unit aware of how the others have interacted with a given customer (39%) and developing and sharing a detailed picture of customers, behaviour and preferences (38%) as the top benefits. Yet when asked which best described how their organisation’s sales, marketing and customer service operations access customer information, 54% of respondents say there are multiple repositories of loosely linked or unlinked customer information. While telecoms firms may pay lip service to the goal of creating a single view of the customer, over one-half have not yet figured out how to do it.5 © Economist Intelligence Unit Limited 2009
  7. 7. Beyond transactions Creating value through customer partnerships in telecommunications In which of the following ways does your organisation empower its customers? (% respondents) Investing in self-service tools across multiple channels (eg, web, mobile devices, e-mail, point of sale) Improving online or self-service product support tools Improving usability, search and navigation of customer-facing websites Making prices and sales terms more transparent for easy comparability Building or supporting online customer communities 0% 20% 40% 60% Source: Economist Intelligence Unit survey, July 2009. How the three regions differ Telecoms companies in the three regions surveyed—Asia-Pacific, the Americas and EMEA—see their core strengths differently. In the Americas, almost one-half of those surveyed cite innovation as the business’s core strength; in Asia-Pacific and EMEA, the key differentiators are seen as operational excellence and customer service. Which of the following would provide the biggest benefits in integrating your organisation’s marketing, sales and service activities? (% respondents) Making each unit aware of how the others have interacted with a given customer Developing and sharing a detailed picture of customers, behaviour and preferences Prioritising resources directed towards customers by total value over life of customer Integrating customer tracking from lead through post-sales service Helping each function find and act on ways to support the others Measuring the probability that leads will turn into sales, and using these scores to guide sales Establishing common definitions, assumptions and data Presenting customers with a consistent picture of the organisation 0% 10% 20% 30% 40% 50% Source: Economist Intelligence Unit survey, July 2009.6 © Economist Intelligence Unit Limited 2009
  8. 8. Beyond transactions Creating value through customer partnerships in telecommunications Core strengths of telecoms firms Product innovation Customer services Operational excellence EMEA In EMEA, customer service rules In the Americas, firms focus on innovation Americas Asia-Pacific Asia-Pacific firms stress operational excellence 0% 10% 20% 30% 40% 50% Source: Economist Intelligence Unit survey, July 2009. Asia-Pacific Asia-Pacific firms say that the biggest benefit from integrating customer-facing functions would be developing and sharing a detailed picture of customers and customer interactions. Most Asia-Pacific firms cannot do this now. More so than in other regions, their customer knowledge is held in myriad databases—unlinked and loosely linked—around the organisation. EMEA EMEA telecoms companies have lower margins and less pricing flexibility than firms in the other two regions. They are most likely to say that their products are becoming commodities. Perhaps for this reason, they are most likely to say that customer service is a core strength, most likely to emphasise such capabilities as measuring customer satisfaction and responding to customer complaints, and most likely to engage in collaborative product development with customers. Americas Telecoms providers in the Americas cite their core strength in innovative products, and are least likely to say that their products are more commodity-like now than five years ago. But they also are likely to say that their customers are price-sensitive and not particularly loyal. More than firms in the other two regions, providers in the Americas focus on measuring the lifetime value of particular customers so that they can target resources towards and hold onto high-value customers.7 © Economist Intelligence Unit Limited 2009
  9. 9. Beyond transactions Creating value through customer partnerships in telecommunications Conclusion As telecoms services become more commoditised, it will become increasingly difficult for companies to keep brands distinct. Without innovative breakthroughs, only superior management of customer relationships will enable telecoms companies to stand out. Companies in this competitive sector need to: l Reduce the rate of customer churn. With prices declining and the economy soft, the retention of customers becomes critical. Companies need to improve their methods of gauging customer satisfaction; responding to customer demands or complaints; and integrating customer feedback into products or services. l Integrate sales, marketing and customer-service operations. In order to best serve existing customers, the ability to access data quickly and efficiently is critical. With consistent execution both across channels and in customer-facing initiatives, firms will be able to deliver superior customer value, shorten sales cycles, increase margins and improve their competitive positions. l Improve metrics. Few survey respondents express any confidence that their companies can accurately measure the lifetime value of customers. Telecoms companies, with their reliance on long-term service contracts, must take a methodical approach to measuring lifetime value. This will enable companies to focus more clearly on—and devote precious resources to—the most worthy customers.8 © Economist Intelligence Unit Limited 2009
  10. 10. Appendix 1 Beyond transactionsOverall survey results Creating value through customer partnerships in telecommunications Appendix: Overall survey results In your view, which of the following best represents the core strength of your overall business? Select only one. (% respondents) Product innovation: First to market with groundbreaking new products or services 34 Operational excellence: Creating highly efficient processes 33 Customer service: Providing superior service to clients 29 Other 4 Each of the organisation’s customer-facing departments influences the customer via different channels. For each of the processes below, how closely do your marketing, sales and customer service units work together? Please rate on a scale of 1 to 5. (% respondents) 1. No coordination; 2. Ad hoc coordination; 3. Some procedures 4. Procedures 5. Broad, systematic and Don’t know units are completely not systematic established, but not established, regular consistent integration of separate or consistent consistently followed interaction information and strategies Generating, tracking and measuring leads 2 18 31 33 8 8 Developing and launching new products 2 10 31 34 17 5 Planning and executing campaigns 2 14 23 34 23 4 Analysing and segmenting customers 5 17 29 34 10 4 Gauging customer satisfaction 3 15 34 30 13 4 Measuring effectiveness of processes 4 20 38 25 5 8 Responding to customer demands or complaints 2 6 28 38 22 4 Incorporating customer feedback into products/services 2 18 31 30 14 4 Other 4 22 9 65 0 20 40 60 80 1009 Economist Intelligence Unit 2009
  11. 11. Appendix 1 Beyond transactionsOverall survey results Creating value through customer partnerships in telecommunications Do you agree or disagree with the following statements? (% respondents) Agree Disagree Don’t know In chosing to do business with my organisation, price is the single most important factor most customers consider 35 64 1 Compared to our competitors, my organisation’s customers are more loyal 57 25 18 My organisation has an accurate way to estimate the lifetime value of customers 30 56 14 My organisation prioritises sales and marketing resources based on each customer’s lifetime value 36 45 19 We are currently developing a social media strategy 40 35 25 My organisation has more flexibility than its competitors in pricing its products 49 39 11 Despite the recession, my organisation has greatly strengthened customer relationships over the past 12 months 60 27 13 We are more engaged in developing products or services collaboratively with customers than we were 12 months ago 47 36 17 Customers view my organisation’s products and services more as commodities now than five years ago 67 22 11 Our margins are higher than the margins of most of our competitors 42 42 16 0 20 40 60 80 100 In your view, which of your organisation’s activities are most Which of the following would provide the biggest benefits in in need of improvement? Select up to four. integrating your organisation’s marketing, sales and service (% respondents) activities? Select up to three. (% respondents) Targeting the right customers in order to close a high percentage of prospects 35 Making each unit aware of how the others have interacted Cross-selling or upselling customers with a given customer 35 39 Efficiently acquiring customers (eg, reducing the cost of sales) Developing and sharing a detailed picture of customers, 34 behaviour and preferences Measuring/optimising effectiveness of marketing and promotional campaigns 38 32 Prioritising resources directed towards customers Gathering customer intelligence in the course of providing service by total value over life of customer 28 38 Building long-term relationships Integrating customer tracking from lead through post-sales service 27 37 Generating qualified leads Establishing common definitions, assumptions and data 26 25 Involving customers product/service development (eg, co-creation) Helping each function find and act on ways to support the others 22 25 Segmenting and profiling customers Presenting customers with a consistent picture of the organisation 20 23 Providing a consistent customer experience Measuring the probability that leads will turn into sales, and using these scores to guide sales 20 22 Ensuring that customer complaints are resolved quickly Our company sees no need to integrate our marketing, 20 sales and service activities Creating effective collateral 4 18 Other Measuring customer satisfaction and loyalty 1 14 Don’t know/Not applicable Maximising the number of repeat sales 3 9 Other 1 Don’t know 210 Economist Intelligence Unit 2009
  12. 12. Appendix 1 Beyond transactionsOverall survey results Creating value through customer partnerships in telecommunications Which of the following trends have had the greatest impact on Which of the following product lines does your organisation your business over the past 12 months? Select up to three. offer? Select all that apply. (% respondents) (% respondents) Global economic downturn Wireless data 59 63 Changing customer requirements Wireless voice 39 57 Emergence of new competitors Voice over IP 38 52 Significant demand shifts for our products/services Business internet (T1, T2, etc.) 28 46 Disruptive technology developments Landline telephony 24 41 Finding access to credit/capital Residential internet (eg, dial-up, ISDN, cable modem) 16 37 Focusing on sustainability efforts In-home entertainment (TV, movies, etc.) 15 23 Emergence of new markets for our products and services Other 14 18 Accessing key components or resources through our supply chain Don’t know 11 4 Other 4 Don’t know 1 Which statement best describes how your organisation’s sales, marketing and customer service operations access customer information across the product lines selected in the previous question? In which of the following ways does your organisation (% respondents) empower its customers? Select all that apply. (% respondents) There are multiple repositories of loosely linked customer information, depending on the business line or function 41 Improving online or self-service product support tools 52 Sales, marketing and customer service can access a common repository, but information on specific customers is not always available quickly and Investing in self-service tools across multiple channels easily available (eg, web, mobile devices, e-mail, point of sale) 23 49 Sales, marketing and customer service can access a central Improving usability, search and navigation of customer-facing websites repository and quickly and easily see customer information 40 when dealing with a specific customer Making prices and sales terms more transparent for easy comparability 18 38 There are multiple repositories of customer information, Building or supporting online customer communities and they are not linked 32 13 Other Other 2 0 Don’t know Don’t know 10 411 Economist Intelligence Unit 2009
  13. 13. Appendix 1 Beyond transactionsOverall survey results Creating value through customer partnerships in telecommunications How well is your organisation able to integrate marketing In which region are you personally based? programmes and campaigns across multiple telecom services? (% respondents) (% respondents) Asia-Pacific Seamlessly 32 8 Western Europe Very well 27 20 North America Somewhat 26 54 Middle East and Africa Poorly 8 14 Eastern Europe Not at all 5 1 Latin America Don’t know 2 3 What is your company’s primary industry? How well is your organisation able to measure the (% respondents) effectiveness of such campaigns? (% respondents) Telecommunications 98 Precisely Education 1 0 Very well IT and technology 1 16 Somewhat 55 Poorly 16 Not at all 3 Don’t know 9 Which of the following best describes your title? (% respondents) Board member 3 CEO/President/Managing director 12 CFO/Treasurer/Comptroller 3 CIO/Technology director 2 Other C-level executive 10 SVP/VP/Director 17 Head of Business Unit 4 Head of Department 14 Manager 28 Other 612 Economist Intelligence Unit 2009
  14. 14. Appendix 1 Beyond transactionsOverall survey results Creating value through customer partnerships in telecommunications What are your organisation’s global annual revenues Who are your organisation’s primary customers? in US dollars? (% respondents) (% respondents) Business-to-business 37 $500m or less 34 Consumer/retail 23 $500m to $1bn 13 Both 40 $1bn to $5bn 18 $5bn to $10bn 17 $10bn or more 17 Which perspective—consumer/retail or business-to-business—are you sharing in this survey? What are your main functional roles? (% respondents) Please choose no more than three functions. (% respondents) Strategy and business development Consumer/retail 61 41 Business-to-business 39 General management 31 Operations and production 19 Marketing 19 Sales 17 Finance 14 IT 12 Information and research 9 Risk 8 R&D 8 Customer service 8 Procurement 5 Legal 4 Supply-chain management 1 Human resources 1 Other 413 Economist Intelligence Unit 2009
  15. 15. Appendix 2 Beyond transactionsAmericas survey results Creating value through customer partnerships in telecommunications Appendix: Americas survey results In your view, which of the following best represents the core strength of your overall business? Select only one. (% respondents) Product innovation: First to market with groundbreaking new products or services 48 Customer service: Providing superior service to clients 28 Operational excellence: Creating highly efficient processes 24 Other 0 Each of the organisation’s customer-facing departments influences the customer via different channels. For each of the processes below, how closely do your marketing, sales and customer service units work together? Please rate on a scale of 1 to 5. (% respondents) 1. No coordination; 2. Ad hoc coordination; 3. Some procedures 4. Procedures 5. Broad, systematic and Don’t know units are completely not systematic established, but not established, regular consistent integration of separate or consistent consistently followed interaction information and strategies Generating, tracking and measuring leads 4 19 35 19 8 15 Developing and launching new products 4 15 15 35 15 15 Planning and executing campaigns 19 27 27 12 15 Analysing and segmenting customers 4 15 31 27 8 15 Gauging customer satisfaction 12 15 19 19 19 15 Measuring effectiveness of processes 12 23 35 12 4 15 Responding to customer demands or complaints 12 31 27 19 12 Incorporating customer feedback into products/services 27 23 27 12 12 Other 11 89 0 20 40 60 80 10014 Economist Intelligence Unit 2009
  16. 16. Appendix 2 Beyond transactionsAmericas survey results Creating value through customer partnerships in telecommunications Do you agree or disagree with the following statements? (% respondents) Agree Disagree Don’t know In chosing to do business with my organisation, price is the single most important factor most customers consider 46 50 4 Compared to our competitors, my organisation’s customers are more loyal 50 35 15 My organisation has an accurate way to estimate the lifetime value of customers 27 54 19 My organisation prioritises sales and marketing resources based on each customer’s lifetime value 27 62 12 We are currently developing a social media strategy 50 27 23 My organisation has more flexibility than its competitors in pricing its products 42 38 19 Despite the recession, my organisation has greatly strengthened customer relationships over the past 12 months 35 42 23 We are more engaged in developing products or services collaboratively with customers than we were 12 months ago 48 32 20 Customers view my organisation’s products and services more as commodities now than five years ago 54 23 23 Our margins are higher than the margins of most of our competitors 46 38 15 0 20 40 60 80 100 In your view, which of your organisation’s activities are most Which of the following would provide the biggest benefits in in need of improvement? Select up to four. integrating your organisation’s marketing, sales and service (% respondents) activities? Select up to three. (% respondents) Efficiently acquiring customers (eg, reducing the cost of sales) 46 Prioritising resources directed towards customers by total Targeting the right customers in order to close a high percentage of prospects value over life of customer 35 46 Cross-selling or upselling customers Integrating customer tracking from lead through post-sales service 35 38 Building long-term relationships Developing and sharing a detailed picture of customers, 31 behaviour and preferences Creating effective collateral 38 27 Making each unit aware of how the others have interacted Measuring/optimising effectiveness of marketing and promotional campaigns with a given customer 27 27 Ensuring that customer complaints are resolved quickly Establishing common definitions, assumptions and data 23 23 Involving customers product/service development (eg, co-creation) Presenting customers with a consistent picture of the organisation 23 23 Segmenting and profiling customers Measuring the probability that leads will turn into sales, and using these scores to guide sales 19 19 Providing a consistent customer experience Helping each function find and act on ways to support the others 15 8 Generating qualified leads Our company sees no need to integrate our marketing, 12 sales and service activities Measuring customer satisfaction and loyalty 4 12 Other Gathering customer intelligence in the course of providing service 4 12 Don’t know/Not applicable Maximising the number of repeat sales 12 8 Other 4 Don’t know 815 Economist Intelligence Unit 2009
  17. 17. Appendix 2 Beyond transactionsAmericas survey results Creating value through customer partnerships in telecommunications Which of the following trends have had the greatest impact on Which of the following product lines does your organisation your business over the past 12 months? Select up to three. offer? Select all that apply. (% respondents) (% respondents) Global economic downturn Wireless data 50 65 Emergence of new competitors Voice over IP 31 58 Changing customer requirements Wireless voice 31 58 Focusing on sustainability efforts Landline telephony 31 35 Disruptive technology developments Business internet (T1, T2, etc.) 27 31 Finding access to credit/capital Residential internet (eg, dial-up, ISDN, cable modem) 19 23 Emergence of new markets for our products and services In-home entertainment (TV, movies, etc.) 19 12 Accessing key components or resources through our supply chain Other 15 23 Significant demand shifts for our products/services Don’t know 15 0 Other 4 Don’t know 4 Which statement best describes how your organisation’s sales, marketing and customer service operations access customer information across the product lines selected in the previous question? In which of the following ways does your organisation (% respondents) empower its customers? Select all that apply. (% respondents) There are multiple repositories of loosely linked customer information, depending on the business line or function Improving online or self-service product support tools 40 54 Sales, marketing and customer service can access a central repository Building or supporting online customer communities and quickly and easily see customer information when dealing with 42 a specific customer Making prices and sales terms more transparent for easy comparability 16 38 Sales, marketing and customer service can access a common repository, Improving usability, search and navigation of customer-facing websites but information on specific customers is not always available quickly and easily available 35 16 Investing in self-service tools across multiple channels (eg, web, mobile devices, e-mail, point of sale) There are multiple repositories of customer information, and they are not linked 35 12 Other Other 0 0 Don’t know Don’t know 19 1616 Economist Intelligence Unit 2009
  18. 18. Appendix 2 Beyond transactionsAmericas survey results Creating value through customer partnerships in telecommunications How well is your organisation able to integrate marketing In which region are you personally based? programmes and campaigns across multiple telecom services? (% respondents) (% respondents) North America Seamlessly 92 12 Latin America Very well 8 8 Asia-Pacific Somewhat 0 50 Eastern Europe Poorly 0 19 Western Europe Not at all 0 0 Middle East and Africa Don’t know 0 12 What is your company’s primary industry? How well is your organisation able to measure the (% respondents) effectiveness of such campaigns? (% respondents) Telecommunications 100 Precisely 0 Very well 15 Somewhat 42 Poorly 27 Not at all 4 Don’t know 12 Which of the following best describes your title? (% respondents) Board member 4 CEO/President/Managing director 15 CFO/Treasurer/Comptroller 4 CIO/Technology director 0 Other C-level executive 12 SVP/VP/Director 19 Head of Business Unit 0 Head of Department 8 Manager 31 Other 817 Economist Intelligence Unit 2009
  19. 19. Appendix 2 Beyond transactionsAmericas survey results Creating value through customer partnerships in telecommunications What are your organisation’s global annual revenues Who are your organisation’s primary customers? in US dollars? (% respondents) (% respondents) Business-to-business 42 $500m or less 38 Consumer/retail 15 $500m to $1bn 12 Both 42 $1bn to $5bn 15 $5bn to $10bn 12 $10bn or more 23 Which perspective—consumer/retail or business-to-business—are you sharing in this survey? What are your main functional roles? (% respondents) Please choose no more than three functions. (% respondents) Strategy and business development Business-to-business 55 42 Consumer/retail 45 General management 31 Operations and production 27 Sales 23 IT 19 Finance 15 Marketing 12 Information and research 12 Risk 8 R&D 8 Customer service 8 Procurement 0 Legal 0 Supply-chain management 0 Human resources 0 Other 818 Economist Intelligence Unit 2009
  20. 20. Appendix 3 Beyond transactionsAsia-Pacific Creating value through customersurvey results partnerships in telecommunications Appendix: Asia-Pacific survey results In your view, which of the following best represents the core strength of your overall business? Select only one. (% respondents) Operational excellence: Creating highly efficient processes 37 Product innovation: First to market with groundbreaking new products or services 33 Customer service: Providing superior service to clients 27 Other 3 Each of the organisation’s customer-facing departments influences the customer via different channels. For each of the processes below, how closely do your marketing, sales and customer service units work together? Please rate on a scale of 1 to 5. (% respondents) 1. No coordination; 2. Ad hoc coordination; 3. Some procedures 4. Procedures 5. Broad, systematic and Don’t know units are completely not systematic established, but not established, regular consistent integration of separate or consistent consistently followed interaction information and strategies Generating, tracking and measuring leads 3 23 27 33 10 3 Developing and launching new products 3 13 33 33 13 3 Planning and executing campaigns 7 7 21 45 21 0 Analysing and segmenting customers 10 10 30 43 7 0 Gauging customer satisfaction 14 45 28 14 0 Measuring effectiveness of processes 3 13 37 33 7 7 Responding to customer demands or complaints 3 7 23 37 27 3 Incorporating customer feedback into products/services 7 17 30 27 17 3 Other 14 43 14 29 0 20 40 60 80 10019 Economist Intelligence Unit 2009
  21. 21. Appendix 3 Beyond transactionsAsia-Pacific Creating value through customersurvey results partnerships in telecommunications Do you agree or disagree with the following statements? (% respondents) Agree Disagree Don’t know In chosing to do business with my organisation, price is the single most important factor most customers consider 37 63 0 Compared to our competitors, my organisation’s customers are more loyal 60 20 20 My organisation has an accurate way to estimate the lifetime value of customers 34 52 14 My organisation prioritises sales and marketing resources based on each customer’s lifetime value 39 32 29 We are currently developing a social media strategy 29 39 32 My organisation has more flexibility than its competitors in pricing its products 64 29 7 Despite the recession, my organisation has greatly strengthened customer relationships over the past 12 months 75 18 7 We are more engaged in developing products or services collaboratively with customers than we were 12 months ago 34 41 24 Customers view my organisation’s products and services more as commodities now than five years ago 62 28 10 Our margins are higher than the margins of most of our competitors 45 41 14 0 20 40 60 80 100 In your view, which of your organisation’s activities are most Which of the following would provide the biggest benefits in in need of improvement? Select up to four. integrating your organisation’s marketing, sales and service (% respondents) activities? Select up to three. (% respondents) Generating qualified leads 40 Making each unit aware of how the others have Targeting the right customers in order to close a high percentage of prospects interacted with a given customer 40 53 Cross-selling or upselling customers Developing and sharing a detailed picture of customers, 37 behaviour and preferences Efficiently acquiring customers (eg, reducing the cost of sales) 47 30 Integrating customer tracking from lead through post-sales service Gathering customer intelligence in the course of providing service 33 30 Presenting customers with a consistent picture of the organisation Measuring/optimising effectiveness of marketing and promotional campaigns 30 27 Prioritising resources directed towards customers by Measuring customer satisfaction and loyalty total value over life of customer 30 27 Providing a consistent customer experience Helping each function find and act on ways to support the others 23 23 Building long-term relationships Establishing common definitions, assumptions and data 13 20 Segmenting and profiling customers Measuring the probability that leads will turn into sales, and using these scores to guide sales 17 13 Creating effective collateral Our company sees no need to integrate our marketing, 13 sales and service activities Maximising the number of repeat sales 7 13 Other Involving customers product/service development (eg, co-creation) 0 10 Don’t know/Not applicable Ensuring that customer complaints are resolved quickly 0 7 Other 0 Don’t know 020 Economist Intelligence Unit 2009
  22. 22. Appendix 3 Beyond transactionsAsia-Pacific Creating value through customersurvey results partnerships in telecommunications Which of the following trends have had the greatest impact on Which of the following product lines does your organisation your business over the past 12 months? Select up to three. offer? Select all that apply. (% respondents) (% respondents) Global economic downturn Wireless voice 60 60 Emergence of new competitors Wireless data 37 60 Changing customer requirements Business internet (T1, T2, etc.) 33 53 Disruptive technology developments Landline telephony 30 47 Significant demand shifts for our products/services Residential internet (eg, dial-up, ISDN, cable modem) 27 40 Finding access to credit/capital Voice over IP 10 40 Emergence of new markets for our products and services In-home entertainment (TV, movies, etc.) 10 23 Accessing key components or resources through our supply chain Other 10 17 Focusing on sustainability efforts Don’t know 10 7 Other 10 Don’t know 0 Which statement best describes how your organisation’s sales, marketing and customer service operations access customer information across the product lines selected in the previous question? (% respondents) In which of the following ways does your organisation empower its customers? Select all that apply. There are multiple repositories of loosely linked customer information, (% respondents) depending on the business line or function 43 Investing in self-service tools across multiple channels Sales, marketing and customer service can access a central repository (eg, web, mobile devices, e-mail, point of sale) and quickly and easily see customer information when dealing with a 50 specific customer Improving usability, search and navigation of customer-facing websites 20 47 Sales, marketing and customer service can access a common repository, Improving online or self-service product support tools but information on specific customers is not always available quickly 43 and easily available Making prices and sales terms more transparent for easy comparability 20 43 There are multiple repositories of customer information, Building or supporting online customer communities and they are not linked 23 17 Other Other 3 0 Don’t know Don’t know 0 021 Economist Intelligence Unit 2009

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