The ‘New Normal’ will find most businesses at a loss and bouncing back will require effort, dedication, and of course more efficient and agile development cycles. Telcos in times of crisis and eventual post-crisis have many things to consider.
Fortunately, the Telecommunications industry has currently experienced less negative impact from the economic downturn than other industries, as the demand for network services during lockdown has risen. From February to April 2020 some regions’ Internet traffic skyrocketed by 50% while voice traffic also went up by about 40%.
Despite this situational upsurge in demand, COVID-19 has had a deep impact on customer behaviour, already affecting the way people perceive value from utilities.
Capitalize on tomorrow, not today.
To leverage the situation short-sighted Telcos might consider raising prices to maximize revenues with the increased demand, but we believe this to be a dangerous move. As people have become more budget conscious, driving up prices may result in brand churn. Instead of capitalizing on the very-short term, Telcos should rather understand how they can meet their customers’ shifting needs, reposition their brand and develop new products and services to create added value. Being quick to respond to this economic development is an opportunity to sneak ahead of the competition and to secure positive short- and longterm returns. Every Telco should start acting now on how to make the best out of the post lock down future.
RETHINK YOUR OFFERINGS AND CREATE NEW RELEVANT ONES
Post lockdown, many activities that normally took place outside the home, will be brought into the home due to deflated disposable incomes and a lag effect of anxiety. Furthermore, customers will exhibit an increased price vs. perceived utility sensitivity. Therefore, customers might re-evaluate their choice of preferred brands, dropping the ones with low perceived value. People will connect with brands and businesses who are capable of creating new relevant products and services.
LEVERAGE THE INFRASTRUCTURE FOR MAXIMUM BANDWIDTH
Due to the sharp spike in internet usage, both residential and business customers are experiencing limitations with their bandwidth, e.g. regular dropouts of their internet connection during video calls. If we look into the near future, new home and IoT applications will demand even better network services that will boost bandwidth.
CREATE NEW WOW-EXPERIENCE TO FOSTER CUSTOMER RELATIONSHIPS
Since people will be driven more by being risk averse, brands need to establish transparent and flexible relationships with their customers. This means rethinking the ‘lock in’ strategies and rather removing barriers to entry and especially exit.
learn how to
- Create better value for consumers within their home.
- Develop offers for SME customers.
- Rethink 5G monetization strategy.
- Reduce churn and bind customers long term.
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