Openet, provider of Subscriber Optimization Software (SOS (News - Alert)) for policy management, recently sponsored a survey given by UK analyst firm Telesperience on the importance of personalization for operators.
“Although many operators report being able to support personalized plans, today it is actually more properly mass customization, because it is not dynamic, agile, reliable and low cost,” said Teresa Cottam, research and publications director at Telesperience. “They are not using customer data to personalize the offer, so they’re still stuck in the rut of niche marketing and are not harnessing the true commercial potential that personalization offers.”
To obtain the information for the study, Telesperience spoke to product management, marketing and IT staff from operators around the world. The report found that currently, a minority of operators are capable of rolling out personalized offers, pricing plans and bundles, but that number is set to increase in the next two years with personalized customer support as the most important driver of future business.
The report also highlights the main adoption barriers and benefits for personalization strategies, revealing how far along operators are in executing their plans and identifying the gap between key stakeholders regarding perception and priorities. Surprisingly, product managers/marketers and IT staff agree that IT limitations and budgets are the main barrier for ongoing personalization.
However, IT staff revealed that personalization efforts are often undeliverable using existing systems. IT staff also reported that software budgets constrain efforts to support personalization, a view reinforced by surveyed product managers and marketers.
According to the report, 60 percent of product managers and marketers reported that organizational obstacles hold them back from implementing personalization strategies. On top of that, 90 percent said that making changes to existing pricing plans and offers is not a simple task. This challenge is often due to legacy IT infrastructure’s inability to support change. The result is a difficulty in supporting personalization approaches by treating personalization as an ongoing, dynamic process.
“By not fully supporting personalization initiatives, operators risk seeing costs inflated elsewhere — and missing out on crucial new revenue streams,” said Michael Manzo, CMO of Openet (News - Alert). “The good news is that true personalization can easily be supported through relatively modest investments in garnering transparency into subscriber usage and preferences to build a singular, comprehensive profile that supports effective personalization.”
For more information on the report, download it here.
Stefanie Mosca is a Web editor for TMCnet. Previously she worked as a freelance copy editor for Digital Surgeons LLC. She holds a master's degree in journalism from Quinnipiac University and a bachelor's degree in communication from the University of New Haven. To read more of her articles, please visit her columnist page.
Edited by Janice McDuffee