Telstra sees dip in NPS, financial results

ASX-listed telco misses its target of increasing customer satisfaction but says work is underway to improve services and the network to build scores back up

Andrew Penn - CEO, Telstra
Andrew Penn - CEO, Telstra

Telstra has seen its NPS scores falter but attracted net new retail mobile and fixed-line broadband customers during the six months to 31 December 2016.

The ASX-listed telco reported a dip in financials for the first-half today, including a 0.7 per cent year-on-year decrease in group revenue to $13.7 billion, and 1.6 per cent reduction in EBITDA to $5.2bn. However, excluding regulatory decisions around mobile termination services and wholesale fixed-line charges, total income rose 2.2 per cent to $13.7bn, while EBITDA increased 2.4 per cent to $5.4bn.

During the six months, Telstra added 200,000 domestic retail mobile services, 90,000 retail fixed-line broadband customers, 124,000 bundles, 292,000 NBN connections and 322,000 Telstra TV devices.

Telstra CEO, Andrew Penn, was pleased Telstra had performed well in a highly competitive market across mobile, fixed, data and IP, and had been able to gain customers and increase market share in NBN sign-ups.

But with stellar customer experiences remaining the core imperative for the telco, Penn said he was disappointed to see Telstra’s strategic NPS (net promoter score) decline by 8 points since December 2015. This was primarily driven by impact of network outages, most recently in June, particularly with large business customers, he said.

Penn suggested work to improve services should reflect in the NPS score in the next half as Telstra rolls out more of its $3 billion investment in networks and digitisation. The telco has a goal of improving its strategic and episodic NPS by 3-6 points annually.

“We’ve seen encouraging trends in consumer NPS and some positive trends in episodic NPS in the last six months underpinned by customer focused initiatives,” he told investors. “Notwithstanding this, it’s important we do more for our customers, and there are too many instances where we have let our customers down.

“We are working hard to regain our customers’ trust.”

Penn highlighted a range of initiatives aimed at delivering seamless customer interactions in the last half. This included providing more network coverage and faster speeds, new devices such as the Gateway Frontier modem, which unites mobile and fixed network connectivity in one device, and improving delivery options with more flexibility and choice for customers receiving hardware from Telstra. This had been achieved by replacing scripted terms and conditions with simple messages.

Telstra also simplified self-install for ADSL customers, created more value for mobile customers with Go Mobile Swap and MyBusiness lease plans, and improved core systems to improve the time it takes to complete customer orders by reducing customer-facing interfaces from nine to one, Penn said.

Penn also noted the positive impact of Telstra’s rebrand campaign, which launched in July and had a focus on developing a closer emotional connection with customers.

“Since launch, we have seen positive trends in relation to brand consideration and perception measures and we have been recognised as Australia’s most valuable brand and among the world’s top 100 most valuable brands for the second year running,” he commented.

Telstra’s three-pronged ambition is to deliver brilliant customer experiences, drive value and growth from the core, and build new growth businesses close to the core. To help achieve this, the telco revealed a $3bn capital investment plan last year, focused on network infrastructure investment and improvement as well as digitising systems and processes.

“While the competitive dynamics and NBN rollout have had an impact, we are pleased with the overall resilience of the business,” Penn concluded. “We are committed to improving the experience we provide our customers.”

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

Blog Posts

Data has the power to build or burn brands

A brand can be severely wounded by use or misuse of any of its assets and you could say data has the greatest power of all to inflict damage.

Lucy Acheson

Head of data strategy and customer experience, LIDA

Totto and your inorganic future

At Cannes Lions this year we’ve been treated to many artificial intelligence (AI) insights. It’s one of the major discourses of our time.

Richard Brett

CEO, opr

Personas of one and the rise of ‘always there’ marketing

I’ve got some bad news. The ‘always on’ marketing approach that many companies have only just fully implemented is already out of date.

Nigel Roberts

Founding partner and strategy lead, Yell

Promotion is difficult. You should be able to do it. Sometimes it turns out bad, and when you turn to professionals, it turns out well - ...

Jordan Samuil

Village Roadshow partners with Lion for pourage rights and promotional partnership

Read more

This is very good news for Australian SMEs as ActiveCampaign is an very powerful marketing automation / email marketing tool that costs a...

Lawrence

SMB marketing automation provider sets up Asia Pac HQ in Sydney

Read more

Thanks for the info! If you are looking for commercial real estate in Mumbai, visit us at Jagaha.com! We have over 20,000 verified proper...

Gizelle

Salesforce ups the Marketing Cloud ante with Datorama acquisition

Read more

Completely agree! For the best commercial properties in Mumbai, visit our website - Jagaha!

Gizelle

Salesforce ups the Marketing Cloud ante with Datorama acquisition

Read more

Carisoprodol is used for treatment of pain.so it has some amount of drug use it carefully . Get its complete usage and prescription from ...

jensons henry

CMO profile: The strategy behind Cash Converters brand and customer experience reboot

Read more

Latest Podcast

More podcasts

Sign in