EY: Customer experience is top priority of telcos

Tim Peters

According to EY’s latest telecommunications report "Navigating the Road to 2020 — Opportunities and challenges for telecom operators in the Middle East," 68 percent of telecommunications C-suite respondents cite customer experience management as their top strategic priority over the next three years.
Wasim Khan, partner and chief operating officer, EY, says: “A better customer experience can help telcos remain relevant. Every telecommunications player in the region sees customer experience as a top-three agenda item. Improving levels of customer support and personalizing the customer experience are seen as the most important routes to improving customer relationships in the Middle East. While many operators are diversifying into new growth segments and overhauling their organizational structures, better customer relationships are seen as the surest route to thriving in the digital era.”
Regional players are even more emphatic in their focus on cost efficiencies and smart services. Three in four regional respondents cite cost control compared with one in two participants globally and 38 percent cite developing new services as a top three strategic priority and see smart home services as a leading driver of digital revenues, compared with 17 percent globally.
EY’s MENA Telecoms, Media and Technology Advisory Services Leader Tim Peters says: “Greater levels of organizational agility are critical in a world where startups and web giants are reshaping demand scenarios. There is proportionately greater confidence in the revenue-generating potential of TV and cloud services too,” says Peters.
Although Middle East respondents are less likely to nominate network upgrades as a strategic priority compared with their global peer group, this does not mean that capex is leveling off. In fact, 63 percent of regional players see capex trending up in the next 12 months compared with 50 percent of respondents globally.
Additionally, 43 percent of local operators see internal collaboration as a leading route toward operating model improvements, while one in four believe that talent attraction and retention is a strategic priority.
“While external factors are on top of the minds of executives in the Middle East, transformation within the organization is an area that operators are prioritizing. As boundaries blur between traditional industries, telcos’ ability to widen their talent pool and collaborate across business units may be as important to their long-term health as new forms of customer engagement and smart services. New talent will be a leading factor when improving their operating model, while shorter time-to-market and big data analytics are also viewed as key competencies going forward,” comments Peters.
While almost three-quarters of global C-Suite participants believe disruptive competition is a leading risk facing the sector, Middle East telco operators are more focused on the journey toward more intuitive, convenient and trusted relationships with customers.
“The telecommunications industry will continue to evolve in a number of new directions. Operators will continue to seek differentiation through network quality and breadth of service portfolio, underpinned by further industry consolidation and the appearance of new technologies to support data needs in the gigabit era. Operator strategies are expected to diverge on the basis of differences in geographic scale, level of digital ambition, and contrasting prioritizations of growth and efficiency within their strategic agenda. Yet higher levels of agility, more collaborative mindsets and a recasting of customer relationships will be vital to all,” adds Peters.
EY, a global leader in assurance, tax, transaction and advisory services, says the insights and quality services it delivers help build trust and confidence in the capital markets and in economies the world over. “We develop outstanding leaders who team to deliver on our promises to all of our stakeholders. In so doing, we play a critical role in building a better working world for our people, for our clients and for our communities,” EY adds.
EY refers to the global organization, and may refer to one or more, of the member firms of Ernst & Young Global Ltd., each of which is a separate legal entity. Ernst & Young Global Ltd., a UK company limited by guarantee, does not provide services to clients.
The MENA practice of EY has been operating in the region since 1923. For over 90 years, it has grown to over 6,000 people united across 20 offices and 15 countries, sharing the same values and an unwavering commitment to quality.
“As an organization, we continue to develop outstanding leaders who deliver exceptional services to our clients and who contribute to our communities. We are proud of our accomplishments over the years, reaffirming our position as the largest and most established professional services organization in the region,” EY adds.