Customer loyalty, personalization and omnichannel to drive Telstra’s T25 strategy
Telstra’s customer loyalty rewards program, Telstra Plus, will be extended to a full sales and marketing channel, while predictive analytics and omnichannel choice will become key mechanisms for personalized engagement as part of the new T25 strategy released by the telecommunications company today.
In an investor briefing, the ASX-listed company’s chief executive, Andy Penn, announced a series of new ambitions for the company, including improvements to the network and customers, employees, shareholders and of the community as part of a new T25 strategy. The new strategy comes after the conclusion of the current T22 transformation plan, starting in July 2022.
Penn described the T25 plan as “a strategy for growth” and as based on the necessary improvements made by Telstra through its transformational T22 strategy.
Four strategic pillars have been defined as the driving force behind T25: Exceptional customer experiences you can rely on; cutting-edge network and technology solutions that deliver the future; sustained growth and shareholder value; and become the preferred workplace.
“T22 was one of the largest, fastest and most ambitious transformations of a telco globally and today we are a very different company,” Penn said. “This means we are poised for growth as our society and economy becomes increasingly digital and we all work, learn, transact and get our entertainment online. These fundamental changes, along with T25, will support our future growth and shareholder value.”
To help focus on exceptional customer engagement, Penn announced plans to establish a fully integrated channel experience so customers wanting telecommunications, services, energy, technology equipment or integrated home solutions can use the channel of their choice whenever they want. Predictive analytics is therefore gaining in importance as Telstra seeks to make customer experiences more localized.
“Customers will be able to call us and speak to an Australian Contact Center service representative or visit a local expert at our network of Telstra-owned stores,” Penn said. “We will use technology, AI and analytics to provide customers with a more personalized experience with products and services, and to predict and resolve issues before customers know they are happening.”
From a metrics perspective, Telstra is looking at the T25 strategy to increase employee NPS to over +40% and department NPS to +25 by FY25. It also seeks to reduce complaints by one-third by FY23 and 50% by FY25, as well as achieve a 90% support and engagement rating. here this date.
Additionally, the company pointed to increasing digitally active users as key and said it aims to see up to 8.5 million in FY25, up 2 million from current levels. Today, more than 70% of service interactions are digital.
Differentiation on the nbn and network experience is another focus, and Penn said Telstra plans to improve the in-home customer experience through upgrades to the Telstra Smart Modem, Telstra TV, WiFi Doctor and other features in its pipeline. Energy customers will also be equipped with smart meters.
“We’ll get to a point where for over 90% of customer services, they only need to engage with us once and that’s it – no more interactions – just once and that’s it. done,” Penn said.
Also in the spotlight is Telstra Plus, which now has 3.5 million members. As part of the T25 strategy, the loyalty program must be extended to a complete sales and marketing channel. On the cards, there are more rewards for services, personalized offers and redemption value, as well as access to new experiences and how to earn points and offers.
Based on this, Telstra seeks to triple the value of buyouts and increase member engagement to 80%.
“We’re going to evolve Telstra Plus to provide personalized offers that aren’t available anywhere else, so we’re rewarding and thanking our customers and building it to compete with the best rewards programs in Australia,” Penn continued.
“To do this, we will leverage our many relationships with Australia’s largest businesses and partner with smaller businesses to create greater reach in local markets. It’s a huge opportunity, and we’re aiming for 6 million Telstra Plus members by FY25, to make it one of the biggest rewards programs in the country.
Retail experiences are also expected to be enhanced through the use of augmented reality and virtual reality technology, expanded ranges of devices and accessories, express checkout and click/call to collect, new store and kiosk formats, on-site device repair and management services, and new services for SMEs. at Telstra Commercial Technology Centers.
Read more: Telstra takes over ownership of retail stores as part of omnichannel customer service
On the enterprise front, customers who increasingly rely on telecommunications, edge computing, cybersecurity, cloud, AI and IoT products and services provided and managed by Telstra Purple will be supported. through better industry alignment with technology services experts in specific sectors, Penn said.
Along with end-customer ambitions, Penn noted a number of ongoing network and technology innovations aligned with its strategic pillar of creating future-proof solutions. These include extending the 5G network to 95% of the population, with the expectation that 80% of mobile traffic will be on this bandwidth by 2025. Even so, Telstra is also extending 4G coverage to 100% of its network. .
For shareholders, the telecommunications company hopes to achieve a return on investment of approximately 8% by FY23, as well as a single-digit underlying EBITDA and a high CAGR of earnings per share for the financial year. 21 to FY25. This will be achieved through an additional $500 million in cost reductions on top of the $2.7 billion committed under the T22 strategy.
The final step in cost reduction under the current strategy is to restructure Telstra with a new holding company and four key subsidiaries: Infra Co Fixed, Amplitel (Infra Co Towers), Telstra (ServeCo) and Telstra International.
Then there is the employee and operational efficiency side of T25. Penn highlighted the positive impact of moving 17,000 Telstra employees to an agile way of working. Plans are underway to expand BizDevOps approaches to better align operations and development teams. Telstra also plans to have all key business applications using the API-first architecture by 2025.
“Our digital mindset and agile ways of working will make us one of the most responsive and customer-focused telecom operators in the world,” Penn said. “Promoting flexibility and sustainable hybrid working is going to be key to attracting and retaining top talent. We will also continue to invest in new skills and a future-ready workplace, where technology, tools and work practices help our employees be engaged and productive, wherever they are. choose to work.
Sustainability is part of the plan and Telstra has set itself the goal of reducing absolute emissions and becoming the largest certified carbon neutral company in Australia.
“We will also continue our programs to remove the barriers that prevent people from going online, especially for regional and remote Australians, and to connect one million vulnerable customers and develop the digital skills of 500,000 Australians,” added Penn.
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