CRM - April 2008 - (Page 20)

MARKET FOCUS: TELECOMMUNICATIONS The Plight of the Wirelines With wireless encroaching one coverage bar at a time, wireline providers are struggling to revamp their customer strategies A s the telecommunications because customers want a better deal industry pursues its much- and more options, so a total focus on talked-about claims to reliability is not where it’s at,” Baker says. refocus on the customer, the “Voice service is so good that everyone market for CRM products and related takes it for granted—it’s not a differencustomer assurance software has seen a tiator anymore.” Baker and Shira Levine, senior research resurgence. According to a study released by telecom industry research firm Ditt- analyst for next-generation Operational Support Systems (OSS) berner Associates, teleand billing at IDC, agree com companies spent the largest problem for the $997 million on CRMwireline companies is one related software in 2005, of mindset. “The telecom and the firm expects market has historically spending to increase to been a monopoly, with $1.3 billion by 2010. incumbent providers and The main question a captive audience,” Levine for telecom CRM lies in says. “There was really no how wireline companies reason for [wireline prowill hold up in a world viders] to focus their busiruled by iPhones and nesses on the customer.” BlackBerrys. “Wireless Baker advises wireline carriers are way ahead of Can wireline companies hold providers to break out of wireline carriers,” says up in a world of the iPhone the monopoly mindset Dan Baker, research diand to refocus on customrector of Dittberner’s and the BlackBerry? ers—something he says is OSS/BSS KnowledgeBase. “Wireline companies do not have easier for wireless providers. “Wireless a new product yet except for [Voice carriers grew up in a different era and over Internet Protocol] and video-on- [are] more customer-focused than wiredemand. Wireline is between a rock and line carriers will ever be because of the a hard place: The world is going toward culture. Wirelines come from a monopwireless services, and one of the prob- oly environment, and they’re trying to lems with wireline companies is [that] hold onto this monopoly they’ve had for for so long they relied [on] and pitched so long.” Brian Hiener, Convergys’ industry the idea of reliable service.” While reliable service is important, lead in the wireline market, also sees the Baker stresses that it’s not of paramount monopoly mindset, but at the same time importance to consumers anymore. For suggests that most companies providing example, he suggests Verizon’s advertise- wireline service now see themselves as ments—boasting of being “the most having expanded beyond that one catereliable” regarding service and recep- gory. “Most of them have morphed over tion—are missing the mark. “In today’s the last two years,” Hiener explains. world, ‘reliable’ isn’t as important “They’ve added wireless or video to the CUSTOMER RELATIONSHIP MANAGEMENT | APRIL 2008 products they’re offering, so there are very few true players out there anymore. When you talk to them about customer relationships, they’re trying to avoid churn as much as possible by trying to bundle them over to the new products.” Looking ahead, Hiener believes there will be a monumental shift in the way wireline companies try to offer new products and bundle services to retain consumers. The shift, he says, includes products similar to AT&T’s video-on-demand offerings, but on a much larger scale. Hiener says wireline providers are looking to take the bandwidth they have and convert it into a vehicle to bring customers not only more content but a “blend of features across the products.” These features could include programming video settings from wireless phones to record a favorite show, turning lights on in homes, and even changing air-conditioning settings—all theoretical capabilities that Hiener says could become mainstream reality in the near future. In the meantime, wireline as a standalone function is dying a slow death. According to Hines, the focus for many wireline providers, in terms of CRM strategy, is in helping contact center agents cross-sell bundled packages to current customers in order to keep them from going elsewhere. “We see anywhere from 14 [percent] to 16 percent crosssell rates to their newer products,” he explains. “You’ll see a lot of focus in this area—actually taking the contact center and looking at it as a profit center and generating revenue that way.” Baker acknowledges that wireline providers are selling existing customers new offerings, but he says spending money on new CRM solutions and counting on cross-sell as the salvation is just the start. Providers, he says, need to dig deeper: “Can wireline providers step it up and be more? Not just CRM from an automation standpoint, but actually care about the customer?” —Christopher Musico Convergys SAS VENDORS Synchronoss Source: Dittberner Associates TOP TELECOMMUNICATIONS 3 20 www.destinationCRM.com http://www.destinationCRM.com

Table of Contents Feed for the Digital Edition of CRM - April 2008

CRM - April 2008 Contents Front Office Reality Check Customer Centricity The Tipping Point A Tenancy of One’s Own The Rebirth of Taxes destinationCRM Dashboard Labor Disputes Reach The Contract Center The Plight of the Wirelines Required Reading The 2008 Service Awards The 2008 Service Leader Awards Customer Self-Service Microsoft Genesys Oracle eGain Astute Solutions The 2008 Rising Stars The 2008 Service Elite Awar Re:Tooling Scouting Report Pint of View

CRM - April 2008

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