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Digital Marketing Services for Telecommunication

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Digital Marketing Services for Telecommunication
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Other than the IT industry, the telecom industry comes in second in terms of reaping in the benefits of the digital age. Globally, the telecommunication industry is undergoing rapid and dynamic developments with the main players looking forward to create more reliable long-term relations with their customers. Due to so much of competition the revenue growth rate has gone down from 4.5% to 4% in the past 5 years and the competition is only set to go up. In a survey conducted 2 years ago, more than 60% of the respondents had expected the competition to go in the range of 8-10 with 10 being the highest and 1 the lowest. With the process of digital transformation, the main source of revenue for telecom companies are new and innovative services such as Mobile Financial Services (MFS) or Fixed Mobile Convergence (FMC) and even cloud technologies. While most of these services are mobile device dependent, more importantly they are new to the ever-changing world of ours and the people need to know about it. There is no need to stress on the fact that digital marketing services is the answer to all the major marketing needs for any industry or sector, let us take a closer look as to why it is imperative for telecommunication companies to integrate digital marketing services into their plans and what can be done to ensure that effective results are achieved from the ad campaigns.             In order to understand this topic, we have to break it down into 3 parts;
  1. a) The rise in Digital Marketing services in telecommunication industry,
  2. b) The threats faced by the telecom industry in the digital age
  3. c) Why we should implement digital marketing services in the telecommunication industry.
 
  1. A) The rise in Digital Marketing services for telecommunication industry –
            Even though digital marketing services started way back in the 1980s with the advent of television commercials, it gained audience with the advancement of technologies such as the internet and with improvement in digital devices such as the mobile. The dependency on mobile devices has increased so much that as per reports by GSMA, the number of mobile users will increase up to 5.7 billion by 2020. This growth shall mainly constitute of contributions from Asian countries and by the year 2021 the number of mobile users in India alone shall be 310 million. Talking about broadband connections for mobile it will reach up to 73% of the total users. Therefore, one thing is clear that now is the age where information and people are available online, on the go. In order to be able to connect with them, the only medium available is digital marketing as it provides the platform and resources for companies to do so. Low cost, wider reach, better ROI are some of the many benefits digital marketing services provides.
  1. B) The threats faced by the telecommunication industry in the digital age-
            The boundaries of competition are decreasing day by day as the core voice and message services are shrinking because social media platforms are providing new channels. EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) margins have come down from 25% to 17% whereas the cash-flow margins have fallen from 15.6% to 8%. As we have already stated above, the revenue growth rate has gone down from 4.5% to 4% in the past 5 years and companies have to rely on modern services such as FMC, MFS as source for revenue.
  1. C) Why we should implement digital marketing services in the telecommunication industry-
            Even though there are a lot of threats present in the telecommunication sector because of digitisation, like a perfect balance of SWOT analysis, there are opportunities available as well. Due to the fear of non-performance, the average improvement achieved in profits by the use of digital marketing services is 9% for telecom companies while it can be as high as 35%. Under utilisation of resources is the main reason behind this. What companies need to understand is that even though it takes time, results are bound to come if you invest properly and work with dedication while using digital marketing services for telecommunication industry. The biggest advantage it provides is the ability to interact with the customer on a more personalized basis which increases customer satisfaction. As the image below suggests, close to 25% of respondents feel that investment in improving customer satisfaction is a higher priority than say extending into new markets. So, what can be done to ensure customer satisfaction is achieved. Here are 2 things which you can do to achieve the same: 1) reinvent the core: It is a common logic, that the customer will not use your services, if they do not feel they are getting any value out of it. If your customers want digital transactions with you and you continue to push them to visit the store, they are bound to leave. Moreover, certain businesses have been able to increase revenue by 30% by investing in digital sales. Digital transactions take very little time to process and in this fast world, people love it when they save time. In simple words, 2) When addressing customer needs, focus on what a customer actually needs and try to map it in your entire market by identifying those with similar needs and group them together. This helps you to think of solutions easily and also caters to the requirements. Moreover, if you have any innovation in mind or a new product to launch, test it out on a group to see whether it actually works rather than just dumping it on your existing customers and then incurring losses.  

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