Top Five Ways Telecom Operators Can Win in the Digital Revolution

According to The Business Research Company, the global telecom market size is expected to grow from USD 2970.7 billion in 2023 to USD 3106.93 billion in 2024, representing a Compound Annual Growth Rate (CAGR) of 4.6%. This growth is occurring against a backdrop of enhanced digitalization, driving transformative changes for all major telecom players.

2024 promises to be a landmark year for the telecom industry, marked by significant advancements such as the widespread expansion of mobile advertising, the rollout of 5G networks, the integration of AI for smarter networks, the continued proliferation of IoT applications, fortified cybersecurity measures, and the accelerated shift towards cloud-native architecture.

As digitization revolutionizes the industry landscape, telecom operators face numerous challenges. Over the past few years, the industry has experienced moderate to massive digital disruption, leading to a slow decline in revenue growth, with EBITDA margins and cash-flow margins under pressure.

Traditionally, the primary revenue streams for telecom operators have been SMS, voice, and mobile data. While some telcos have quickly adapted to developments like increased mobile phone penetration and the internet explosion, they have struggled to counter the revenue erosion caused by Over The Top (OTT) players. The rise of OTT services has significantly impacted core voice and messaging businesses, exacerbated by regulatory pressures and the growth of social media channels. The increasing influence of OTT players on mobile data traffic and telecom data revenue is a critical concern for the industry.

Initially, many global telcos viewed digitization as a threat. However, forward-thinking players have recognized it as an opportunity to rebuild their market positions, transform customer processes, increase agility with cost savings, and create innovative offerings. Mobile technologies like the moLotus mobile video customer interaction platform have further disrupted the digital landscape. moLotus transforms how telcos digitally advertise, manage processes, engage with customers, and maximize ARPU and customer lifetime value. This platform allows telco marketers to effectively target and track the right customers for their offerings, enhancing performance and ROI.

Not surprisingly, major telecom business leaders now consider digitization a top priority. However, not all telcos are close to capturing its full potential. According to McKinsey, digitization could enhance telco profits by up to thirty-five per cent, yet the average enhancement achieved is just nine per cent. So, how can this digitization gap be bridged?

Here are five ways for telecom operators to come out on top of the digital revolution:

1. Focus on Mobile Advertising

In 2022, mobile advertising spending reached a record USD 327.1 billion worldwide, marking a 17.2% increase from the previous year. According to the latest data, this spending is projected to rise to nearly USD 399.6 billion in 2024 (Source: Statista).

Mobile devices, including smartphones and tablets, have become indispensable tools for communication. With nearly half of the global population using these devices to access the web, telecom operators worldwide are seizing this opportunity to promote their products and services online.

The present and future of digital advertising lie in mobile. Telcos must capitalize on this trend to address the challenge of communicating with their vast subscriber base on a one-to-one basis. Mobile advertising offers a powerful solution to this customer communication challenge.

The widespread penetration of smartphones has shifted telcos' focus towards mobile advertising platforms. Increasingly, telcos are leveraging platforms like moLotus, TubeMogul, InMobi, and others to reach their customers directly and effectively.

The moLotus mobile video customer interaction platform stands out with its robust capabilities for delivering hyper-personalized, customized, and targeted multimedia ads. Preferred by most telecom players, moLotus tech delivers adverts directly to the customer's mobile inbox without requiring any mobile application or expensive data plan. Unlike its counterparts, moLotus ads have a longer shelf life as they remain in the customer's inbox until manually deleted, ensuring prolonged engagement.

moLotus uses telecom subscriber data to run automated, personalized, and scalable rich media advertising campaigns throughout the customer journey. This technology allows telcos to create innovative campaigns with quick responses and high conversion rates. By harnessing the unmatched potential of moLotus, telcos can achieve superior customer engagement and drive higher revenue growth.

moLotus mobile marketing is now indispensable for companies aiming to ensure their marketing messages are seen. As internet users spend more time online via smartphones and tablets, telco marketers adopting a mobile-first mindset can cater to evolving consumer behavior. Data shows that the share of mobile in digital advertising spending is consistently increasing. Mobile overtook desktop as the most invested-in global ad format in 2019, and today, 64% of all digital ad funds are devoted to mobile.

While this trend is global, the pace at which telco marketers adapt to the mobile revolution varies by region, influenced by factors such as mobile adoption rates and mobile internet speeds. For example, in 2021, telco marketers in the UK and Brazil allocated around 76% of their digital ad investments to mobile initiatives, while China led the highest share of mobile in digital ad spend. However, in terms of total expenditures, the United States remains the leading mobile ad market worldwide.

2. Turning Large-Scale Customer Data into Large Margin Profit

In the digital age, the ability to effectively leverage big data and analytics is a critical differentiator for telecom operators seeking to thrive in a competitive market. Big data and advanced analytics provide the insights needed to make informed, strategic decisions that drive revenue growth, efficiency, and customer satisfaction.

Telcos should invest in appropriate digital marketing tools like moLotus which enable them to monetize the data. The moLotus data monetization models offered by these tools are assisting telcos in implementing data to gain insights in order to improve sales and customer experience, boost marketing strategies, optimize campaign performances and much more. However, there is still a lot which telecom businesses can do with the opportunities provided by the vast data pool and the digital marketing tools.

By analyzing customer data, telecom operators can segment their customer base into distinct groups based on behavior, preferences, and demographics. This enables more targeted marketing and personalized service offerings.

Utilizing moLotus predictive analytics, operators can anticipate customer needs and behaviours, allowing them to proactively address issues, offer timely promotions, and enhance customer satisfaction. By leveraging moLotus offered data insights, telecom operators can offer personalized experiences to customers, such as tailored recommendations, customized plans, and exclusive offers, leading to increased loyalty and reduced churn.

moLotus data analytics can identify patterns and trends that highlight opportunities for cross-selling and upselling additional services to current customers, boosting ARPU growth. Big data and analytics enable the automation of various operational processes, from customer service to billing, reducing costs and increasing efficiency.

Leveraging big data, telecom operators can gain actionable insights that inform strategic decisions, from market expansion to product development. Analytics can provide a comprehensive view of the competitive landscape, helping operators understand market trends, benchmark performance, and identify new opportunities.

3. Digital Customer Service and Engagement

In 2022, customer experience (CX) trends highlighted speed and convenience as top priorities for telecom consumers. To meet these expectations, telcos must engage this speed-driven and convenience-oriented customer base with top-tier digital services.

Major telecom players have already transitioned from traditional customer support to digital customer service, often referred to as e-care. This shift is crucial for business upliftment, as the majority of telco customers now prefer digitally rendered services. According to a McKinsey Report, seventy-six percent of telco customers are satisfied with digital-only journeys, compared to fifty-seven percent for traditional channels.

Telcos have been leveraging tools like live chat and co-browsing to support customers during both the purchase process and post-purchase support. Platforms such as ZenDesk, LiveChat, Facebook Messenger Chatbots, WhatsApp, and acquire.io have been instrumental in providing support to web-browsing customers.

However, the landscape is rapidly evolving, with telcos increasingly focusing on innovation and adopting cutting-edge technologies to enhance customer service. One such innovative technology is the moLotus platform. moLotus offers unique capabilities such as mobile business support and video customer support, significantly improving customer service quality. Its customer feedback functionality provides real-time ratings and feedback on various service issues, enabling telecom operators to analyze data and implement improvements effectively.

moLotus offers mobile business support features, enabling telcos to assist customers directly through their mobile devices without requiring any app downloads. moLotus enables telcos to offer video-based customer support, providing a more personalized and interactive service experience. Video support leads to higher customer satisfaction and quicker resolution of complex issues.

With a significant portion of customers preferring digital-only interactions, telcos must ensure their digital platforms are intuitive, responsive, and efficient. By continuously gathering and analyzing customer feedback, telcos can refine their digital services to better meet customer needs.

By embracing digital customer service and engagement tools, telcos can not only meet but exceed customer expectations for speed and convenience. Innovative technologies like moLotus empower telcos to provide superior service, foster stronger customer relationships, and ultimately drive business growth in an increasingly digital world.

4. Transforming Customer Processes with Cost Minimization

Digitization in the telecom industry goes beyond merely acquiring new subscribers; it focuses on enhancing the customer experience by transforming customer processes. Telecom operators are prioritizing customer success through digital transformation initiatives.

Telcos are leveraging digital technologies such as moLotus, Marketo, HubSpot, and others to automate and revamp their customer processes, aligning them with their marketing goals. Modern marketing automation tools like moLotus have made customer processes smoother, faster, more economical, profitable, and convenient. These tools are used to seamlessly automate processes like service reminders, new customer onboarding, and more, while simultaneously reducing costs and boosting business revenue.

By employing moLotus’s mobile transformation capabilities, telcos are building long-term relationships with millennials and Generation Z customers. Features like digital rewards, real-time customer ratings, FAQs, how-to guides, mobile reminders, and instant feedback enhance engagement and satisfaction.

Traditionally, telcos often incur significant expenses without a clear understanding of the costs involved. Telecom cost management has been notoriously challenging, with tracking expenses being time-consuming. Digitization offers numerous cost minimization opportunities by automating "low touch" processes.

Experts point out that the easiest way to reduce telecom overheads is by embracing breakthrough techs like moLotus. Major telecom operators using this technology have significantly reduced costs by cutting down headcounts in call center processes. Migrating to mobile-based and automated customer interactions via moLotus can lower operating expenses by 25 to 30 per cent.

Moreover, telcos can further unlock cost-saving potential by eliminating expenses associated with printing, stationery, training, and compliance. moLotus mobile advertising provides a high return on ad spend, alleviating the financial burden of rising advertising costs.

5. Expanding into Emerging Markets and Driving Sales

Telecom operators must design their strategies to fit the unique characteristics of each country or region they operate in. Customer preferences, languages, interests, and mobile usage patterns vary significantly across different parts of the world. For example, the consumer landscape in Africa differs greatly from that in Latin America, and the competitive environment in a market like Australia, with fewer telecom operators, contrasts sharply with the intense competition in Africa, Asia, and Latin America.

Entering these evolving markets has historically been challenging, but digital marketing technologies like moLotus have simplified the process. Customized and globally scalable moLotus marketing campaigns enable telecom operators to reach diverse global consumers effectively. moLotus utilizes telco customer data at a micro-level, incorporating demographics, behaviors, languages, attitudes, interests, and perceptions. It surpasses other digital platforms like Facebook, YouTube, and WhatsApp in delivering personalized messages to massive subscriber databases without spamming their mobile inboxes.

Customer research indicates a strong preference among telecom customers for online sales. Telcos that invest in digital sales channels can see revenue increases of up to 30 per cent and reductions in commercial costs. Digital advertising platforms such as moLotus Ads, Facebook Ads, and Google Ads allow telecom brands to educate and inform customers about the best offers, product comparisons, and availability checks, thereby influencing purchase decisions.

Telco customers engage more effectively with moLotus campaigns throughout the entire customer journey. Many customers review and research telecom products on their mobile phones before making a purchase. Illustrative moLotus product videos, up to 40 seconds long, attract potential customers by providing engaging and informative content. Additionally, telcos can utilize a variety of other moLotus rich media formats, including dynamic greetings, brochures, slideshows, and showcases.

A superior customer journey demands excellence in every interaction. moLotus offers easy customer interaction options such as SMS, mgram, phone calls, link clicks, and USSD, encouraging customers to engage more with telecom brands. This increased interaction builds trust, drives conversions, and ultimately boosts sales.

By leveraging digital marketing technologies like moLotus, telecom operators can effectively expand into emerging markets and drive sales, achieving significant growth and competitive advantage in a rapidly evolving global landscape.

Conclusion

To succeed in the digital revolution, telecom operators must leverage mobile advertising, big data and analytics, digital customer service, transformed customer processes, and expansion into emerging markets. Staying ahead in this rapidly evolving landscape is crucial. Telecom operators are encouraged to implement these strategies to ensure sustained success and growth.