Page 30 - Flytxt

THE FOUR KEYS TO SUCCESSFUL DIGITAL

CUSTOMER VALUE MANAGEMENT

Over-the-top players have choked the traditional revenue
streams of Communication Service Providers (CSPs). Meanwhile,
a large well-informed customer base is now subscribing to the

digital space for addressing their needs - from entertainment to
healthcare. CSPs can analyse customer behavior deeper to deliver

customer-centric products. Here are four keys to successful digital
customer value management.

- Varun Talati, Senior Manager, Analytics and Consulting, Flytxt

t is a well-established fact that both as an industry witnessing large-
Communication Service Providers scale change in its market environment

I(CSPs) have not been successful in as well as a key driver of worldwide
protecting their traditional voice and digitization. Telecom investments in

messaging revenue streams from the technology and interoperability have
further underpinned an immense shift
over the top (OTT) players. Evaluations in information and capital through the

have shown that OTT applications global economy, while providing the
cut revenue for CSPs by 20% to 50%. building blocks for the emergence of

While the exponential rise in data entirely new business models across
consumption has provided some relief, industries.

this has not been enough to make up for However, a competitive marketplace and
the consistent decline in mobile voice increasing usage of alternatives such

average revenue per user (ARPU). as Wi-Fi and OTTs are seen as a threat

Competitive pricing pressure and OTT to their traditional revenue. For these
disruption have been accompanied reasons, traditional offerings in postpaid,

by rapidly increasing infrastructure such as voice and data, now comprise
of unlimited packs, due to which CSPs
costs brought about by an exponential are experiencing revenue stagnancy. On
increase in demand for bandwidth and the other hand, an increasing number

speed. As per a World Economic Forum of consumers, as well as businesses, are
Report, there has been 13%-36% global engaging with digital subscriptions for

decline in ARPU in all regions globally entertainment, news, books and even
since 2012. healthcare.

Decoding industry challenges OTTs have cannibalized the traditional
telecom revenue and it is clear that
The telecommunications industry is at telecom offerings are no longer a driver
the forefront of digital transformation, for incremental revenue.

30 INSIGHTZ - VOLUME 03, 2018