Communications companies are increasingly focused on becoming more customer-centric 
ConvergenceAsia staff
28/03/2008

Oracle has announced results of a global survey of 164 senior executives in the information, communications and media industries revealing that these companies are increasingly focused on becoming more customer-centric, yet many feel poorly equipped to do so.

The report by the Economist Intelligence Unit, titled "Conquering Convergence", explores why companies are increasing their focus on customer needs in light of proliferating Web technology, which enables customers to exert influence over companies through user-generated content, and which drives the ongoing convergence of products, companies, devices, platforms and customer groups.

Nearly all (92 per cent) of the companies surveyed said they have a strategy in place for focusing on customers, while 69 per cent said they plan to become even more customer-centric.

Yet less than 15 per cent rank their customer focus programmes as highly successful. This is due in part to insufficient technology. One-quarter of respondents feel their company's technology is inadequate for staying abreast of customer preferences. Nearly one-third of companies are plagued with inaccurate customer data. Only 25 per cent have developed methods to forecast patterns of consumer purchases, and just 26 per cent said their company can produce customer analytics that enable up-selling or cross-selling at the time of interaction with a customer.

Just 38 per cent of companies said they have a complete or 360-degree view of the customer that includes information on their purchase and contact history, preferences and demographics, and only one-quarter have developed predictive customer buying models.

Many companies view convergence as a source of both opportunity and risk. For example, they cite convergence as the greatest threat to their profit margins and the second-largest opportunity for expanding profits. While 44 per cent see convergence as a way to become more customer-centric, 34 per cent feel it threatens their ability to do so.

The survey respondents see the value of emerging technologies such as blogs, home-grown commercials and personal videos. Sixty-eight per cent said emerging technologies offer an opportunity to increase revenues or margins, while 39 per cent said they are using emerging technologies to achieve customer-focus goals.

"The survey results support what we have seen in the industry first hand - that communications service providers can no longer compete on products alone. Delivering a superior customer experience is paramount and a critical success factor in this business today," said David Sharpley, vice president, product marketing and channels, Oracle Communications.

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