By Chinmay Mishra, Product Marketing Manager, Optiva • May 27, 2022
Chinmay has 13+ years of experience in strategy and marketing in telecom and technology domain. He is a technology enthusiast and evangelizes the use of data in decision making. Chinmay is an avid dog lover, who devotes time to improve the lives of four-legged furry friends.
Did you know?
A telco’s digital brand typically attracts 24% of total gross adds at 50% of existing customer acquisition cost within the initial 12 months of launch.
So, with more and more service providers exploring or in the process of launching digital brands comes the question — When to launch a digital brand? Let us start with the main needs or reasons. In recent years, and especially accelerated by the digitalization effect of the coronavirus pandemic, the global telecom market has experienced many trends. Three important ones that dictate major decisions are:
1. Increased competition – Intense competition (from telco and non-telco) is continuously putting pressure on already depleted operators’ ARPU. Data is now a commodity, and service innovation is required to create more value for the customers.
Did you know?
In FY’10, revenue of the top 25 global telco companies was eight times that of the top eight tech companies. By FY’20, this completely changed, and the ratio reversed to four and a half times in favor of tech companies.
2. Missing customer expectations – E-commerce, banking, and other OTT cloud-based digital services created new consumer habits. Today, digital-savvy consumers expect on-demand personalized services and care from telcos, requiring new delivery processes and capabilities.
Did you know?
A western European telco gained a 5% revenue increase after developing an automated and customer-life-cycle-management campaign.
3. Accelerating technology adoption – Telcos, in general, have been laggards when it comes to adopting new technologies like cloud, analytics, and AI/ML. With heavy 5G investments, this digital transformation has become a must for survival.
Did you know?
A telco in APAC can reduce 25% of BSS costs and 20% of total operational costs with digital-first technologies in a matter of two years.
In the past, service providers tried to address all of the above by transforming their entire IT organizations and service offerings. Recently, they have adopted a more agile method, “the Digital Brand.”
A digital brand targets a differentiated customer segment with an innovative digital and cost-effective value proposition that is driven by digital customer experience. To ensure the digital brand is successful and agile, it needs to be powered by digital and automated operations. A few examples from the field are:
All companies positioned their digital brands as new, fully digital value propositions distinguished from their legacy service provider offerings, with end-to-end digital customer journeys such as onboarding, activation, and service.
A well-thought-out and executed digital brand can solve the challenges mentioned above and provide a path for rapid and sustainable growth and digitalization. It is a less expensive and more distributive option for digital transformation versus a whole transformation of the core business.
The following are go-to-market growth strategies for digital brands that highlight scenarios where they can work their magic.
Case 1: Growth targeting the digital-savvy customer segment
Case 2: Shorter and less expensive path to digitalization
Case 3: Strategic cannibalization of specific customer segments
Case 4: Quick counter to competition from a new entrant to the market (digital brand, MVNO, or MNO)
For more details on Optiva’s digital brand offering, visit our digital brand page. Want to know more about Optiva’s revolutionary fast-track delivery and proven BSS that powers brands globally? Request a presentation.
Have feedback or questions for the author? Contact Chinmay Mishra, Product Marketing Manager, Optiva
Discover more! Read Experience From the Field: CSP’s Changing BSS and Monetization Requirements.