Telstra looks to bolster customer advocacy with refined CX and network investment strategy

Telco refines its corporate strategy, putting an emphasis on delivering brilliant customer experiences, and building off its core network business and driving better value

Telstra CEO Andrew Penn
Telstra CEO Andrew Penn

Telstra’s CEO says the latest refinements to its corporate strategy are about further improving experiences for existing customers and growing in and around the core network business.

During its investor briefing day today, Telstra CEO, Andy Penn, said the ASX-listed telco giant had realigned around three strategic pillars: Deliver brilliant customer experiences; drive value and growth from the core; and build growth in businesses close to the core.

The tweaks come three months after Telstra announced it will spend up to $3 billion over the next three years to improve the quality of its networks and digital infrastructure. The spend includes more than $1.5 billion for building network capability, $1bn in accelerating digitisation of the business, and up to $500 million in customer experience related improvements.

“The changes to our strategy are not major, however they are an important signal to shareholders, employees and our customers that we will be relentless in delivering customer experience improvements and disciplined in how we invest in our networks, services and growth businesses,” Penn stated.

“It will also enable us to respond strongly to increasing competitive intensity, the accelerating rollout of the nbn, and the greater demand for data in an ever increasingly connected world.”

Penn said the investment into Telstra’s networks was recognition that connected consumers are increasingly reliant on its network. Network traffic over fixed and mobile networks is expected to grow five-fold over the next five years.

“We are faced with unprecedented demand on our network and a world of opportunity to deliver new experiences,” he said. “We will leverage new technology to deliver higher availability and performance, and unlock new sources of differentiation for our customers.”

The quality of Telstra’s network has repeatedly come into question over the past year after a series of high-profile outages across the country. In a sign of customer dissatisfaction, the telco reported a 4-point drop in its strategic Net Promoter Score, its core customer advocacy measurement, in its end-of-year financial report to 30 June.

Penn told investors today that Telstra is looking to deliver a 3-6 point per annum lift in strategic and episode NPS between now and 2020 off the back of several specific customer experience advancements.

These include improving the efficiency and ease for customers engaging with the telco’s sales and services channels, an emphasis on simplicity and usability in product experience with a shift towards customer experience-led product design, and greater focus on customer lifecycle management to achieve growth from Telstra’s existing subscriber base.

“Only 40 per cent of our customers subscribe to only one Telstra product. Yet the churn for two or more products is less than half of that of single product holding,” Telstra Retail group executive , Kevin Russell, said during the investor briefing, adding that its customers spend $4.2 billion with other providers. “Clearly there is value in our existing customer base.”

Follow CMO on Twitter: @CMOAustralia, take part in the CMO conversation on LinkedIn: CMO ANZ, join us on Facebook: https://www.facebook.com/CMOAustralia, or check us out on Google+: google.com/+CmoAu

Join the CMO newsletter!

Error: Please check your email address.
Show Comments

Supporting Association

Blog Posts

Disruption Down Under – What’s Amazon’s real competitive advantage?

Savvy shoppers wait in anticipation, while Australian retailers are gearing up for the onslaught. Amazon’s arrival is imminent.

Change across the board: Why boards need to digitally evolve

Traditionally the non-executive board of a company acts in an advisory capacity - attending monthly board meetings to offer overarching advice and guidance typically focusing on:

Jodie Sangster

CEO, ADMA

The most desirable customers you’ve overlooked

“What will really move the needle?” This is a question that keeps leaders awake at night. And at the intersection of some of their top priorities – finding pockets of growth, redefining the customer experience, and making an emotional impact – lies a latent market: Their diverse customers.

Really inspiring !

Goldenboy Media

Jaywing sets sights on Australian growth with digital and data-driven agency model

Read more

Being aware of regulations or guidlines is just the start. As our CEO Emma Lo Russo stated exactly two weeks ago at an event we supported...

Alan Smith

​Are the Wild West days of influencer collaboration over?

Read more

Rebranding is always nice solution to get better organisation. Businessman may apply certain special services (for example, https://www.l...

David Hill

CMO interview: Spearheading the global rebranding of OFX

Read more

Thank you so much for sharing this article.Top Digital Marketing company in Bangalore

Way To DM

Predictions: 17 digital marketing trends for 2017

Read more

Thanks for the great article Jodie, agree many boards and senior execs are operating in outdated modes, just as we need some reverse soci...

sharyn

Change across the board: Why boards need to digitally evolve - Data-driven marketing - CMO Australia

Read more

Latest Podcast

More podcasts

Sign in