Communications service providers (CSPs) have never worked harder to keep customers happy. Traditional players are facing unprecedented competition from newer entrants capitalizing on the expansion of high-speed fiber-optic internet, 5G, and other advances. Consumers increasingly view the services CSPs provide as commodities and are eager to test out new options. According to a recent Salesforce survey, more than three quarters of customers say they’d be at least somewhat likely to switch to a non-traditional provider - such as Apple, Amazon, and Google - for wireless and cable services. And this summer, digital streaming television viewership surpassed broadcast views for the first time.
Amidst rising competition and the commoditization of services, consumers are also demanding more from providers than ever before. Digital-first competitors known for simple and intuitive interfaces have raised the bar for customer experience, while the proliferation of remote and hybrid work has made speedy, reliable connectivity paramount. Many service providers are falling short in meeting heightened customer expectations. For example, a recent Salesforce survey revealed only one in five people report an excellent self-service or assisted-service experience on their provider’s website. Given market and industry pressures, service providers need to find ways to deliver on customer demands while keeping cost savings top of mind.
Four steps to better customer experience
To stand out from the pack and hold on to customers, service providers can take a page from the playbook of consumer tech companies. By taking these five steps, they can reduce churn without sacrificing efficiency:
1. Enable personalization
Nothing is more frustrating for customers than rehashing their service issue with multiple reps who lack context or receiving an offer related to a product they don’t own. These days, service providers must do so much more than provide a phone line or cable hook up — they must enable a world of technology that people depend on for everything from school to work. With that in mind, service providers should strive to build a deeper relationship with customers and provide personalized interactions across every touchpoint.
Achieving personalization at scale requires service providers to develop a holistic view of their customers across every channel and interaction. For example, Telstra, Australia’s largest telecommunications company, previously stored customer information in disconnected, dated systems, leaving sales and services reps without information about past interactions. Once Telstra implemented a solution that provided a unified view of the customer, teams could better collaborate and meaningfully engage customers, while customer service agents became more efficient and productive. For example, for agents in stores, transferring a customer's information to a new account went from taking up to an hour to taking only four minutes.
2. Tap the power of automation
Automated technology is key to providing excellent experiences at scale while keeping a lid on costs. Service providers typically focus on automating consumer interactions, such as responding to common requests, providing agents with relevant context and recommendations, and reducing the number of clicks needed to complete a task. They can also automate complex business transactions, though, such as providing internet service in multiple locations of a major enterprise.
Service providers can differentiate themselves by making all interactions completely automatic. Achieving this requires adopting platforms that provide a single view of the customer and closing the gap between disparate legacy systems. For example, KPN, an operator in the Netherlands, consolidated four separate systems into a central platform that gave all teams full insight into the customer journey. Automating manual processes allowed the company to handle more than six times as many orders with fewer resources. By reducing handle time, automation helps lead to happier employees, more satisfied customers, and lower costs.
3. Invest in self-service
Adding self-service functions presents another opportunity for service providers to improve customer experience and reduce costs. Currently, only 22% of customers report having an excellent self-service experience on their provider’s website, based on findings from Salesforce. Many are dissatisfied by limited functionality and the lack of a streamlined connection between their self-service experience and other points of contact, including making purchases, checking on orders, reviewing usage, and making changes to their services on an ongoing basis.
Businesses have come to expect the same flexibility and seamless interactions as consumers. Service providers should invest in self-service options that include mobile apps, online portals, and API connections for large enterprises. For example, Orange Poland built a mobile app with a simple interface that allowed customers to complete common transactions from anywhere on their own, including activating service in minutes without visiting a store or signing a contract, and modifying their plans or gifting data to others. This not only increased convenience for Orange Poland customers, but also reduced calls to the contact center, allowing agents to focus on high-value interactions. Despite being a new player in the country, the company attracted significant subscribers away from competitors, using differentiated self-service options as a key selling point.
4. Communicate brand values
Customers are increasingly aligning themselves with brands that speak to their beliefs, with two-thirds reporting to Salesforce that they have stepped away from companies whose values don’t align with their own. Among service providers, around 80% of leaders say they consider carbon accounting, closing the digital divide, social responsibility, and supporting underrepresented minorities as very or extremely important. And according to recent research, nine in 10 customers want companies to clearly voice their values, while just half believe this happens often.
Conveying core values to consumers and taking actions that demonstrate their commitment is another way that service providers can build meaningful relationships with their customers, while doing good. For instance, Telus, a Canadian provider, has consistently set itself apart from the competition and connected with customers through ads promoting the company’s focus on sustainability.
Retaining customers for the long term
When asked what would increase their satisfaction with service providers, customers often point to lower prices. While competing on cost can be an entry point to a relationship, it’s not enough to build a sustainable business model or retain customers for the long term. To truly differentiate themselves in a hypercompetitive landscape without increasing expenses, providers must deliver a customer experience that is personalized, automated, accessible, and values-based. It’s only by standing out through excellent customer service that providers can build lasting relationships with their customers.
