Telstra hosted its annual analyst event in Sydney on October 23 and 24. In his keynote address, CEO David Thodey compared Telstra’s customer advocacy journey to a triathlon that the firm has just begun, which we believe it a fitting analogy for Telstra’s progress on the path it has set for itself. The company is clearly in the race and making progress, but still has many miles to go.
While the company shared a broad spectrum of initiatives, our main observations are that Telstra:
Has made clear progress since our check-in last year, but its transformation remains a work in progress. Telstra is no different than other incumbent telcos working to transform beyond traditional — and declining — sources of revenue. Its dominant position in Australia is secure, but its prospects in new market categories inside and outside of Australia are less certain. We do not believe that Telstra is particularly innovative compared with service providers in the US or Europe, but we do believe that it has a viable transformation strategy and is making progress. Its progress in the Australian media and entertainment industry, including its Foxtel investments, is impressive — it has built a large IP-based digital media file exchange platform to serve global broadcasters and content providers.
Are you trying to take your current customer experience measurement to the next level?
Many of the customer experience professionals we talk to regularly are working on improving their customer experience measurement. You are probably one of them. You might be working on picking the right metrics, on connecting customer experience to business outcomes or to operational variables, on using data to improve the customer experience, or on getting traction for CX measurement in your organization. To conquer any or all of these challenges, you need a solid and well-founded customer experience measurement framework.
"Can consumers respond to having an experience with multiple companies?"
In some cases, yes, and in some cases, no. In the bank, credit card provider, insurance, consumer electronics manufacturer, airline, hotel, and rental car categories, they can pick up to two brands they’ve done business with most in the past 90 days. For retailers, they can pick up to four. For the other six industries, they are limited to one.
"What is the threshold to determine if the person is a customer? Interactions one time, over time? A recent experience?"
We don’t strictly require the person to be a customer. The person could be a prospect or a former customer. All we ask is that this person has done business with the company in the past 90 days.
"Why don't you track high tech?"
We do, actually. Two years ago, we added the consumer electronics manufacturer industry, which covers most of the latest high-tech gadgetry. We don’t include software in part because there are just so many types of software and so many brands. It would be hard to narrow them down to something manageable.