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PRESS RELEASE
By 6 November 2013 | Categories: Press Release

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 An international survey of leading executives in the Telecoms sector conducted by Experian, the global information services company, has revealed that ‘big data monetisation’ is the fastest growing challenge facing the sector.  Churn, customer experience and reducing fraud are also amongst the key issues and challenges facing Telecoms companies in the lead up to 2014.

The survey was conducted amongst 80 senior executives in 45 telecommunications companies covering 22 countries including South Africa. Executives were asked to provide insight into the most pressing issues. A similar survey was conducted last year and the results have been compared to identify leading trends in the major issues affecting telecommunication companies over time.

The main findings from the survey include:

  • The number of respondents citing big data monetisation as a major challenge for telecoms operators has increased by 150% compared to 2012, making it the biggest riser compared to other challenges
  • 37% of respondents said end-to-end customer relationship management is their most significant business challenge. This is compared with to 2012 when also 37% of respondents agreed suggesting that this challenging issue remains a tough one to solve.  
  • 32% of respondents said that reducing churn was the most critical factor in improving margins (this compares with 26% in 2012).
  • Selling additional services to existing customers is also identified as important (29% vs 19% in 2012).
  • Winning profitable customers (24% now compared with 21% in 2012) is also a priority highlighting the trend away from a pure revenue (ARPU) view of the world to incorporate Average Margin per user (AMPR) and Customer Lifetime Value (CLV).  
  • Almost two fifths (37% in 2013 compared with 30% in 2012) said improving the quality of decision making throughout the customer lifecycle will provide the greatest benefit to their organisation, along with using external data to enhance their understanding of customer’ value relative to their potential risk.
  • 10% of respondents felt combatting fraud posed a growing challenge in the run up to 2014.
  • 7% of respondents said automating a greater proportion of customer decisions and interactions continued to be of importance.

Antonio Valasquez, Corporate Risk Director at Telefonica, commented: “We agree with the findings of the survey.  Our experience tells us that concerns around reducing churn, improving customer experience and developing cross-sell opportunities are very closely interrelated. The pressures of market saturation combined with the drive to reach new customers and improve profitability, means telcos have to rethink substantial elements of their strategies. This demands not only self-criticism, courage and effort, but also new and better customer information, analysis and insights.”

Michelle Beetar, Managing Director at Experian SA said: “One of the key areas highlighted was end-to-end customer relationship management – from originations right through to collections.  Collection of overdue accounts and recovery of unpaid debts in particular is a key focus for local telecoms companies.

“Many South Africans are facing increased financial stress and continue relying on credit to meet their general living costs. Deteriorating credit health of South Africans is on the rise with the number of impaired accounts having increased during previous quarters and evidence of increasing default levels on unsecured credit.

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