Marketing Analysis of Telstra Company - Case Study Example

Student Name: Tutor: Title: Analysis of Telstra Course: 1. The company: Telstra Telstra is leading Australian telecommunication and information company proving a wide range of communication services and drawing competition in all telecommunication markets. it provides 7.8 million fixed voice services, 2.8 million retail fixed broadband services, and 15.1 million mobile services within the Australian market. The company was founded in 1975 as Telstra Corporation Limited. Telstra offers network solutions and services to more than two hundred of the world’s top five hundred companies. The clients rely on the company to conduct business across two hundred and forty countries and territories to make sure there is greater efficiency, productivity, and growth. The privatization of the company in 1997/1998 gave impetus to its growth (Parker & Saal, 2003, p.177). Telstra is a leading provider of wholesale, mobile and business communications services and a major provider of managed network services and international data in numerous countries and territories. Some of the top competitors include Optus and Vodafone. The two companies have waned while Telstra has continued to flourish. Telstra added 739,000 customers to its customer base in six months by the end of 2013 (Pehrsson, 2013, p.117). Customers draw value from quality of service and convenience. In 2009 Telstra and Microsoft entered the cloud concurrently with a quite a range of cloud services comprising of collaborations, messaging, and communications. Telstra provides Office 365 being the exclusive distributor using the T-suite portfolio of SaaS products. Sources of value are not the same for all customers and company designs customer specific products to deal with different needs. The company targets different segments of the market to reach diverse customers from individuals to companies (Telstra.com, 2013). Wholesale services are offered are provided to RSPs and ISPs whereas advertising and subscription television services are offered using subsidiary companies. Telstra has greatly diversified its business operations. 2. Types of CRM strategy Improvement of customer satisfaction is an important function of Telstra strategy. The purpose is to change the customer’s perceptions about Telstra through building a culture of customer advocacy at Telstra. This is a commercial as well as a cultural initiative since it is understood that advocates buy more of the company’s services and are at the top front to recommend Telstra to friends and family. Turning the loyal customers into advocates underlie an important cultural change within the company. Above 7,500 of people leaders have received training, skills and tools required to create a customer advocacy culture in all parts of the company’s business. Customers are asked for feedback after each interaction with Telstra hence providing adequate information on their experience with Telstra (Roberts, 2005, p.150). Surveys conducted show that customer advocacy has improved tremendously. Telstra is resorting to direct marketing in order to increase one-on-one interaction with the customers while reducing mass media communication. The strategy has influenced organizational culture and structure through removing bureaucracies and encouraging ready response to customers and enhanced interaction and consultation among staff. Telstra outsourced the services of DDB handing over its customer relationship management account to the agency. The company had previously cut its links with Ogilvy but the latter was fighting to retain the CRM Account. DDB launched Telstra rebrand by September 2011 (Ferrell et al, 2012, p.415). Telstra realizes that excellent customer service translate to placing the customer the heart of everything done by the company. Any expansion has to target improving service delivery to the customer. Three-pillar strategy developed by Telstra in a strategic framework developed in 2010 demonstrates the evolution of the company’s customer-focused journey and new opportunities identification. Improvement of customer advocacy shows progress from customer retention and satisfaction and it is simply a stand-alone proposition in the company. Driving value from the core focuses on revenue and customer growth, superiority of network and pushing productivity using simplification of business (Jaray, 2005, p.79). Another strategy is anchored on building new growth business centered on Asian expansion, network services, long-term growth opportunities like digital media and global platforms and applications. Simplification of business remains an integral part of Telstra’s strategy. Last financial year simplification initiatives realized $1billion with regard to productivity benefits (Telstra.com, 2013). Telstra has put in place a variety of initiatives and tremendously channels for feedback between the senior management and frontline staff that has assisted in improving processes, improving customer service and reducing complexity. The skill set of contact center consultants has been broadened making them able to handle calls in multiple situations without the need to transfer to a technical expert. More than three thousand agents have been up-skilled hence realizing more efficient and effective customer interactions. Billing was simplified through application of new rates for the entire billing period when customers alter plans. The move is aimed at reducing calls to contact centers, better customer experience, and fewer complaints to the Telecommunication Industry Ombudsman. A 14 day customer card was introduced to enable a customer to contact the same technician who visited their premises if such a need arises. the current CRM strategy appear to be success since more than 739,000 customers were added in the last financial period and the company has embarked on profitability measures (Pehrsson, 2013, p.117). The direct competitors like Vodafone and Optus seem to lag behind against the superior strategies being employed by Telstra. 3. Customer acquisition, retention, and development strategy The strategy used by Telstra compels the company to expand cloud capabilities and services outside the domestic market in order to support multinational customers. For the purpose of attracting customers in the regional multinational corporation market, the company has to have a vivid international product roadmap. Products by the company and continuous investment in network have persistently attracted new customers. The company’s cloud service strategy entails developing a broader partner ecosystem to scale its service provisions and optimization of its network, as well as platform investments (Pintado, 2009, p.124). Building together with managing the ecosystem of partners is a significant task. Telstra is involved in strategic alliance program for the purpose of achieving leadership within the cloud market. The strategic partners include Microsoft, VMware, Cisco, and Accenture. Telstra is committed to improving its customer service as the first strategic priority. Customer satisfaction has definitely improved and this is demonstrated by reduction of complaints to the Telecommunications Industry Ombudsman. The company is focused towards implementation of key customer service initiatives (Telstra.com, 2013). Simplification initiatives realized $1 billion of productivity benefits that were invested back into the business for support of growth of the customer base, initiatives of customer satisfaction, and implementation of new growth businesses. The company inform customers by SMS of each twenty megabytes of data consumed while travelling abroad so that they are able to manage data usage and avoid shock bill once they come back to Australia. Telstra use Net Promoter system, product differentiation, creation of a unique and positive customer service experience, and process improvement focus. Complaints have reduced indicating increase in satisfaction of company’s customers (Ferrell et al, 2012, p.282).The loyalty program started by the company has attracted many customer and prizes have been redeemed. The company has the intention of slicing the marketing budget by forty percent and taking it out of traditional advertising to CRM. Telstra wholesale implemented Oracle CRM On Demand modules for the purpose of enhancing customer satisfaction, lower costs of operation and streamline sales automation processes. Oracle CRM was considered since it integrates easily with prevailing infrastructure of existing IT to deliver more opportunity management and security. Oracle CRM On Demand has provided Telstra wholesale with the opportunity and tools to maintain an integrated and stronger customer relationship management system capturing all marketing and sales activities in a secure location. The dashboard and reporting functions of Oracle CRM On Demand facilitate the staff of Telstra Wholesale to process, collate, and analyze process data vividly (Clark, 2010, p.243). The company also applies the strategy in launching and tracking campaigns for products which are newly released and management of promotional and customer events applying email and survey email distribution abilities. Telstra also contracted CHE Proximity and Lavender to its roster to enhance CRM duties as it targets increase on one-to-one marketing. 4. Application of multiple channels to deliver value to customers The close connection between customer relationship management and customer centricity is key to the ability of Telstra to maximize shareholder’s value. The basic principle behind customer centricity is recognizing that customers and their wants, needs and aspirations differ and are by no chance static. Telstra delivers variety to its customers through highly differentiated products. Telstra has entered the market on multiple fronts having large percentage of customers for its cloud services across the corporate market and medium and small businesses (Plunkett, 2007). Coming up with differentiated experiences for the customers in all customer touch points is what is needed. Telstra is making use of CE 2.0 to deliver greater value at a reduced cost. The company is using aggregation, MRV’s CE access and management solutions in Australia for supporting advanced Ethernet services that are created to meet the needs of the customer for rapid service turn-up, bandwidth granularity and flexibility, and service assurance. There are more than 1 million active users on the 24/7 application that is available on the Android, Apple iPhone, Apple iPad, as well as on Facebook. The 24/7 time application enables customers to monitor their data and call usage, topping up prepaid accounts and accessing their bills (Ferrell et al, 2012, p.282). Expansion of the application will involve allowing customers to purchase new services. Since April of 2012 more than 2.5 million customers have gone ahead to download the application. The opportunity of the customer to contact the company readily is being prioritized as Telstra. The guideline of customer-centric transformation for Telstra is majorly market-based management. The approach entails identification of set of customer needs, and then optimizing and managing every segment with a relevant end-to-end experience and significant key performance indicators. This means that needs of the customers come first. The company has increased the number of usage alerts send to its customers in order to keep them informed about mobile usage. The significant customer base for Telstra gives it the chance to market a variety of services and products across Australia (Roberts, 2005, p.150). The company segments its customer base for the purpose of effectively meeting different needs of its customers. For every segment, Telstra aims at customizing its promotion and advertising, sales channels and customer contact, as well as support and product design. The company has incorporated segment information into its sales systems in order for every customer contact to be tailored to the needs of that specific customer. In order to reach niche customer segments and generate new sales Telstra has reduced dependence on mass media and instead it is focusing on sales promotion and direct marketing and enhancing use of new media like the internet (Clark, 2010, p.243). Telstra has implemented co-branded Visa card with New Zealand and Australia Banking Group Limited for the sake of enhancing customer retention and loyalty as well as promoting the company’s products and services. Approximately nine hundred thousand such cards have been issued to customers. The company customers are able to make use of 4G mobile services when travelling in Hong Kong following the launch of 4G international roaming between CSL New World and Telstra. The same arrangement is being made among other operators in different countries that are compatible with 4G wireless broadband networks (Telstra.com, 2013). Telstra customer’s value superior mobile network being provided by Telstra and $1.2 billion has been invested to maintain mobile network advantage. Networks by Telstra are supported by ongoing investment and innovation, and following the investment in high speed 4G services. The scope of 4G network has been broadened to reach 85% of the population by the end of 2013 (Telstra.com, 2013). 5. Application of technology to CRM strategy Accenture came up with an award-winning blended learning solution to assist Telstra to enhance to competence for its Customer Service and Sales staff. The program has assisted Telstra to cut down its spending on training delivery by half and it is set to enable the company in forging ahead in its drive of attaining high performance. The 4G network build by Telstra in the last financial year accelerated and since its launch 2.5 million 4G devices have been activated. In the last financial year Telstra launched the ‘Thanks’ loyalty scheme to thank the customers for choosing the company, and rewarding people for being part of the company’s vision (Telstra.com, 2013). The aim is to deliver a charming loyalty scheme that emphasizes on providing things that are highly valued by company’s customers as well as employees. The aim of the nationwide program is to demonstrate to esteemed customers that the company appreciates them and to the employees that their work is highly respected and valued. Research in the field divulged that customers enjoy going out to movies and attending live sporting and music events. The loyalty scheme has been designed to provide those experiences in an exciting and new way. The thanks loyalty scheme was launched as an illustration of building one-to-one relationships with customers through improving means of communication with them and changing conversation about Telstra in a positive way. More than eight hundred thousand customers have applied the scheme in redeeming tickets for sports or movie events, or even music. Customers have visited the site in their millions. Statistics suggest that when customers are aware of the Thanks scheme, they are nine percent likely to advocate for the brand and reduces their chances of being detractors by the same rate (Clark, 2010, p.243). Telstra stresses that customer data has to be stored in Australian data centers hence avoiding the risks of getting involved in compliance requirements and circumnavigating the legal landscape of cross-border. Telstra enhances its onshore data storage capacity especially when it gets to government organizations. Telstra deployed Siebel eAnalytics and Siebel Marketing applications to over eighty marketing professionals. The CRM applications give the capacity to managers in the company to come with customer segmentation analysis applying customer information from all touch points and come up campaigns reaching its customers effectively through direct mail, call centers, or email. They assist Telstra to analyze, manage and track channel as well as marketing effectiveness using real-time reporting (Telstra.com, 2013). These initiatives make sure the Telstra refine its marketing strategies in all channels. In order to incorporate partners into the channel system Telstra is applying Siebel eChannel a relationship management portal for customer communication and sales data between Telstra and its strategic partners. Through incorporating its channel partners into its CRM system the company ensures that it retains a seamless view of customer at all points of interaction between partners, Telstra customer-facing professional, and customers (Pehrsson, 2013, p.112). The company provides a website page where customers who have complaints can raise them. The consumer can receive instant response through live chats or through phone. The unsatisfied customer can also reach the company’s staff through email, letter or fax. The consumer complaint line is available 24/7. References Clark, E. 2010, Cyber Law in Australia, Kluwer Law International, Melbourne, p.243. Ferrell, O.C., Lukas, B.A., Schembri, S., & Niininen, O. 2012, Marketing Principles, Cengage Learning, New Jersey. Jaray, S. 2005, Marketing, Career FAQs, Sydney, p.79. Telstra.com, 2013, Report: 2013 Annual report, retrieved from: http://www.telstra.com.au/aboutus/community-environment/reports/ Parker, D. & Saal, D.S. 2003, International Handbook on Privatization, Edward Elgar Publishing, Melbourne, p.177. Pehrsson, A. 2013, Strategy in Emerging Markets: Telecommunications Establishments in Europe, Routledge, New York, p.112. Plunkett, J.W. 2007, Plunkett's Telecommunications Industry Almanac 2008: Telecommunications Industry Market Research, Statistics, Trends & Leading Companies, Plunkett Research, Ltd, New Jersey. Pintado, I. 2009, Connection Generation: How Connection Determines Our Place in Society and Business, ConnectGen Pty Limited, Sydney, p.124. Roberts, JH. 2005, Defensive marketing: How a strong incumbent can protect its position, Harvard Business Review 83 (11): 150. Read More