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 newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.
Show Comments

Latest Videos

More Videos

Thanks for sharing. You might want to check this website https://lagimcardgame.com/. An up and coming strategic card game wherein the cha...

Pierce Fabreverg

Board games distributor partners with Deliveroo in business strategy pivot

Read more

Such an important campaign, dyslexia certainly need more awareness. Amazing to see the work Code Read is doing. On the same note we are a...

Hugo

New campaign aims to build understanding around scope and impact of dyslexia

Read more

Great Job on this article! It demonstrates how much creativity, strategy and effort actually goes to produce such unique logo and brandin...

Pierce Fabreverg

Does your brand need a personality review? - Brand vision - CMO Australia

Read more

Here’s an article on solving the most complex customer queries without a delay. Hope it helpswww.engati.com/blog/address...

soham

How to manage social media during Covid-19

Read more

Thank you for explaining the rules. This article covers the principles of design, which arrange the elements of art into a composition. ...

Pierce Fabreverg

Reports: Brands have an important role to play during the COVID-19 crisis - if they're useful

Read more

Blog Posts

A few behavioural economics lesson to get your brand on top of the travel list

Understanding the core principles of Behavioural Economics will give players in the travel industry a major competitive advantage when restrictions lift and travellers begin to book again. And there are a few insights in here for the rest of the marketing community, too.

Dan Monheit

Co-founder, Hardhat

Predicting the Future: Marketing science or marketing myth?

Unicorns, the Sunken City of Atlantis, Zeus: They are very famous. So famous in fact, that we often think twice about whether they are real or not. Sometimes if we talk about something widely enough, and for long enough, even the strangest fiction can seem like fact. But ultimately it is still fiction - stories we make up and tell ourselves over and over until we believe.

Kathy Benson

Chief client officer, Ipsos

Winning means losing in the game of customer retention

At a time of uncertainty and economic hardship, customer retention takes on much greater importance. CX Lavender’s Linda O’Grady examines the big grey area between ‘all’ and ‘best’ customers when deciding who is worth fighting for and how.

Linda O'Grady

Data Strategy Partner & Business Partner, CX Lavender

Sign in