Telcos to incorporate mobile components in CEM

by Sohini Bagchi    Mar 11, 2013

mobile components in CEM

Customer satisfaction has become the key differentiator in any industry, and especially in the telecom sector where there is intense competition. Today, an increased number of telecom players are turning to customer experience management (CEM) solutions for efficiently managing their customers’ experience and level of satisfaction at each touch point. Not only that they are incorporating mobile components and advanced analytics as part of their CEM strategy to analyze customer behavior, sentiments and preferences in a better and efficient manner.

A recent report by ABI Research observes that mobile CEM generates better business outcomes by offering customers a rich, personalized and engaging experience, which in turn can improve ROI. The report notes that the CEM opportunity in 2013 at $1.3 billion across the network and IT domains in areas like BSS/OSS, CRM, and SDP.

According to Aditya Kaul, Practice Director, ABI Research, CEM will span across every department in the organizations such as customer care, data management, billing and charging, policy, device management, service assurance, network analytics, and network operations.

In the current business scenario, telecom companies are realizing that the focus should be on the quality of service so as to enhance customer experience on the whole, rather than focusing on a particular application, mentions Shagun Bali, an analyst with Ovum in a recent report on CEM.
“Just a few years ago mobile devices were all about voice and messaging but with the development of smartphones and tablets we are now seeing more of internet-based applications. The number of applications has grown exponentially thus compelling leading operators to seek analytics for mobile applications, mobile web analytics, and operator network tracking solutions to help them understand and analyze factors revolving customer usages of the mobile data,” she says.

Bali mentions that in the coming years, more technologies will come up in the areas of media analytics, speech analytics, social analytics and behavioral analytics that will become integral parts of CEM solutions. However, at present the CEM market is just emerging, although both vendors and service providers are seeing a lot of benefits in areas like social and mobile analytics.

“With competition intensifying in the telecom sector, every player is looking to retain their customer base. Therefore a broader range of channels such as social and mobile analytics can help them improve retention and efficiency, and drive new revenue streams,” says Smita Sen, Technology Advisor at Aircel. She believes that CEM will gradually into a set of BI functions which deliver performance and service delivery analytics at every level of the enterprise.

The market for mobile CEM solutions is gaining momentum and investments in this area are likely to pick up in the next 2-3 year. “Investments in advanced analytics, mobile and social media platforms will offer a greater insight on market segmentation, target customers and how to enrich their experience,” says Kaul. At the same time, by exploring these and more newer business models and revenue streams in CEM, telecom players can reduce their operating costs and boost efficiency.