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Telecoms becomes new battleground for customer experience vendors

8th May 2012
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With the customer service battleground heating up, telcos are turning to customer experience management (CEM) solutions to manage consumer satisfaction. Now is the time for CEM vendors to cash in, says Ovum analyst Shagun Bali.

Traditionally telcos have offered poor customer service but as competition for customers intensifies and consumers’ expectations increase, operators now consider customer experience a key differentiator and attempting to improve their service.

“Gradually, CEM is evolving into a source of business intelligence functions which deliver performance and service delivery analytics to all management levels,” says Bali. “The market for CEM solutions is gaining momentum and investments in this area are likely to pick up in the next 12-18 months.”

Telcos’ growing need to automate business processes for better customer experience will see greater investments in subscriber data management, advanced analytics, decision automation, identity management, social media platforms, and knowledge management, which will create further vendor opportunities, says Bali.

She explains that the CEM vendor market is heating up with competition from large global network equipment providers to small analytics start-ups. But the biggest challenge for all vendors is to demonstrate the clear business benefits of their solutions, says Bali.

She concludes: “Given that CEM solutions must efficiently manage and analyse telcos’ massive data stores, the race to analyse data with analytics has already commenced, and will only intensify. Vendors see immense potential in this domain, and are increasing their focus on advanced analytics capabilities to differentiate their offerings. Vendors are integrating various elements of data stored in the networks and IT databases.

“Many CEM vendors are making analytics (predictive, real-time, behavioural, social media, and so on) a critical focal point, highlighting the positive impact on overall business processes and telcos’ bottom lines. Telcos can expect the rapid evolution of customer-experience-centric platforms to continue.”

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