Will mobile telecom consumers prefer the self-service approach?
Regulation, risk and the drive for growth are continuing to impact on profit margins across the telecommunications industry. Efficiency measures can only go so far before impacting on customer satisfaction.
However, there are still opportunities to both reduce costs and increase customer satisfaction, which will result in higher customer loyalty and in turn a decrease in the levels of churn. As with many industries, new technology based around particular customer requirements can have a massive impact.
Fast moving consumer goods, and in particular supermarkets, have quickly adopted 'self service' checkout technology, as a way to increase efficiency and reduce costs. The response from consumers has been equally swift; the technology has been quickly embraced and is being used by a diverse range of customer segments, reducing waiting times.
Telecommunications customers are already used to seeing new innovations in both software and hardware. But can the supermarket self-service concept apply to buying a mobile phone? Can operators take an ordinary looking phone shop and transform them into a more relaxed, customer driven sales experience?
Customers will be presented with the opportunity to look and feel the range of handsets, broadband and other services, giving them a chance to review the functionally and services on offer. Service staff will be on the shop floor and are available to provide assistance if required.
Once the customer has made a decision to purchase they can review price plans and once a suitable option has been chosen, asked to enter identity documents into a scanner. Fingerprint verification can also be done as part of the authentication processes.
The check of the identity documents will result in a decision of verified or declined in a matter of seconds. Once the identity check is verified a credit check is performed to ensure the potential customer has met the organisation's policy regulations. If the credit check is successful the customer will be presented with the agreement with all relevant customer details including MSISDN and IMEI details.
The customer can then sign the agreement digitally and receive a printed copy of the agreement including the digitalised signature. The transaction is then complete when the customer pays using their bank card or credit card.
Will it catch on? For operators it will increase efficiency with quicker processing of applicants, reduce the amount of investment required for human resources and improve defences against fraud.
However, the true potential for this technology is to have an impact of how consumers actually make purchases. If a significant change is achieved in purchase behaviour organisations could see a healthy increase in profit margins. The usual methods and models for understanding the decision to buy cover several stages.
| Example Consumer behaviour / Decision-making process | |
| 1 | Problem recognition - Awareness |
| 2 | Gathering Information - Interest |
| 3 | Alternative education - Understanding / Attitude |
| 4 | Purchase decision |
| 5 | Post-purchase behaviour - Cognitive dissonance / evaluation |
By offering a friendly and relaxing environment telecommunications businesses will increasingly look to assist consumers so that they can go through the stages 1 to 4 in store. Essentially, the self service model can be positioned to help build a perception that telecommunication products and services are not complex purchases that require 'high interest' decisions, but instead part of a 'lower interest' more habitual and routine purchase decision.
As technology evolves at great speed and dexterity in the telecommunications industry, consumers are growing increasingly aware of the products that are available. While industry analysts estimate the average lifespan of a mobile phone to be around seven years, it is also estimated that in excess of 85 percent of current UK mobile subscribers have had their current handset for less than two years. If this is correct and the pattern continues, then this could be viewed as a good indicator for the potential of the self service concept.
Peter Meefout
Sales Director
Credit Services
Experian Netherlands
If you would like to know more about this subject or have any questions for the author please Contact us
| .Read more about Global Authentication services |
| Visit the website to read more » |
| .Read about Document ID Check |
| Visit the website to read more » |
| .Read about Telecommunications |
| Visit the website to read more » |
To register to receive an advance copy of the telecommunications Insight Briefing Paper, please complete the online survey by answering a series of short questions. Participation in this survey will take no more than ten minutes to complete.