Good article in Melbourne’s Age’s newspaper today about the tactics Australia’s telcos are employing in an attempt to lock their customers in to long-term bundles.

Unfortunately, its not surprising that despite their customer first rhetoric, these deals are all about these companies’ economics, their margins and their internal business drivers. It may be what’s best in terms of the immediate monthly and quarterly revenue targets, but is this approach a sound, long-term strategy?

You can read the full at The Age’s website, but here are two exerpts:

“The chief executive of the Australian Communications Consumer Action Network, Teresa Corbin, said bundles may offer discounts but also force consumers to buy services they do not use.”

“Telstra’s pricing encourages customers to either underestimate monthly calls, and get stung by higher actual costs, or pay higher monthly fees for something they may not use.”

The article quotes several telco execs defending their practices, but what they should be really worried about is a recent Deakin University study found that inertia was a stronger driver than loyalty in determining how long a customer stayed with one company.

There’s opportunity there for the first telco to break out from the pack and genuinely focus on customer centricity and the outside-in thinking that requires.

A strategic marketing executive with extensive experience delivering business results for Ansell Healthcare, Mercedes-Benz, consultancies and organisations in Australia, Asia and Europe. Leading-edge skills built around the fundamental principle that, in an era of rapid product and service commoditization, the customer experience matters and is a key driver of competitive advantage. Fully cognizant of the need to synchronize processes, business technology and people to ensure that brand promises are mirrored by reinforcing brand actions. Thrives in “can do”, values-driven organisations which are committed to consumer-focused innovation and making a difference by thinking strategically but acting pragmatically. An accomplished, collaborative business leader and communicator with excellent interpersonal and public speaking capabilities. Key strengths: • Building influence across the business • Harnessing emerging customer trends • Thriving on market and technology change • Differentiating the brand experience • Optimizing the marketing and media mix • Creating and nurturing high-performance teams and relationships Specialties Assets and transferable skills include leadership, strategy development, project management, technology utilization, business process improvement, performance metrics and public speaking. Email: mitchell_mackey@hotmail.com

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