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

Launch marketing council Episode 5: Retailer and supplier

In our fifth and final episode, we delve into the relationship between retailer and supplier and how it drives and influences launch marketing strategies and success. To do that, we’re joined by Campbell Davies, group general manager of Associated Retailers Limited, and Kristin Viccars, marketing director A/NZ, Apex Tool Group. Also featured are Five by Five Global managing director, Matt Lawton, and CMO’s Nadia Cameron.

More Videos

Hi,When online retailers establish their multi channel strategy and they are using or will to use live chatbot to support their customers...

Alice Labs Pte. Ltd.

CMO's top 8 martech stories for the week - 6 May 2021

Read more

Thanks for nice information regarding Account-based Marketing. PRO IT MELBOURNE is best SEO Agency in Melbourne have a team of profession...

PRO IT MELBOURNE

Cultivating engaging content in Account-based Marketing (ABM)

Read more

The best part: optimizing your site for SEO enables you to generate high traffic, and hence free B2B lead generation. This is done throug...

Sergiu Alexei

The top 6 content challenges facing B2B firms

Read more

Nowadays, when everything is being done online, it is good to know that someone is trying to make an improvement. As a company, you are o...

Marcus

10 lessons Telstra has learnt through its T22 transformation

Read more

Check out tiny twig for comfy and soft organic baby clothes.

Morgan mendoza

Binge and The Iconic launch Inactivewear clothing line

Read more

Blog Posts

Getting privacy right in a first-party data world

With continued advances in marketing technology, data privacy continues to play catchup in terms of regulation, safety and use. The laws that do exist are open to interpretation and potential misuse and that has led to consumer mistrust and increasing calls for a stronger regulatory framework to protect personal information.

Furqan Wasif

Head of biddable media, Tug

​Beyond greenwashing: Why brands need to get their house in order first

Environmental, Social and (Corporate) Governance is a hot topic for brands right now. But before you start thinking about doing good, Craig Flanders says you best sort out the basics.

Craig Flanders

CEO, Spinach

​The value of collaboration: how to keep it together

Through the ages, from the fields to the factories to the office towers and now to our kitchen tables, collaboration has played a pivotal role in how we live and work. Together. We find partners, live as families, socialise in groups and work as teams. Ultimately, we rely on these collaborative structures to survive and thrive.

Rich Curtis

CEO, FutureBrand A/NZ

Sign in