According to the last Forrester report for Experianwhich has surveyed more than 270 executives and senior officials in the telecommunications sector in 7 countries in Europe, the Middle East and Africa, including Spain, telecommunications companies are currently reporting a slight increase in new customers and average income for each of them, as well as for existing users, but, at the same time, they face an increase in operating costs and those associated with risk, derived from the high rates of cancellation and non-payment rates.
And it is that according to the study, the 78% of TELCO companies they claim to have experienced an increase or maintenance in delinquency levels and customer loss rates compared to the last year. Also, almost 7 out of 10 also confirm the increase or maintenance of fraud levels. All this results in an increase in the total costs (of service, customer acquisition and collection) that already reports up to 80% of the companies surveyed. Thus, companies are focusing their strategic efforts on increasing revenues -by acquiring new customers and increasing additional and cross-selling to existing ones-, as well as entering new markets and segments, an aspect that is especially relevant for Spanish companies, as they report it as a key in up to 67% of cases.
To do this, up to 66% of companies are looking for new alternative data sources, such as Open Banking, which improve their analytical capacity and help them make better decisions, identify the risk of non-payment by users and deal with fraud, strategic priority for 33% of those surveyed and especially for the Spanish market, where the data increases to 40%. In fact, in our country, reducing the friction associated with verifying the identity of customers is among the key sections. In general, 55% give priority in their strategy to improving the efficiency of customer onboarding processes.
“The search for a competitive advantage, the increase in revenues and the reduction of costs seem to be driving digital transformation both in the area of experience and knowledge of the client and in that of operational processes”, he comments Rita Estévez Luaña, CEO and Market President Spain and Portugal of Experian. “Data from the Forrester study shows how half of those surveyed say they are focusing on implementing a fully digital customer experience. Automation and Machine Learning solutions enable you to work more effectively with customers, helping them find the right and most affordable products, reducing churn and delivering a fully optimized experience«.
However, the Forrester study also shows the way that companies still have to go when it comes to optimizing their Machine Learning and process automation. In fact, one in three respondents say that they do not use this technology, or use it to a limited extent, for fraud prevention, data management, collection and collection. One in three respondents also believes that the difficulty in implementing processes in the models and their explainability prevent further development of Machine Learning.
Other relevant data from the report are:
– 61% of respondents say they need more relevant data to help improve the customer experience, while 49% say verifying customer identity takes too much time.
– 26% say that investing in fraud protection mechanisms is essential for their business.