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Accelerating marketing optimization and automation


A practical approach based on measurable outcomes

Marketing organizations, throughout the Telco industry and geographies, are facing harder challenges than ever before and will continue to do so for the foreseeable future. According to eMarketer data the industry is flat on advertising expenditure and will remain so for the next 3 years.

The pressure on margins and revenues we are seeing eMarketer _January 2016.pngfrom CEOs is due to multiple reasons:

  1. Communication Service Providers (CSPs) have become a commodity player in the eyes of the users.
  2. Increasing market saturation makes it more difficult to attract and retain customers.
  3. OTTs have taken a strong leadership position in the digital life of consumers but are struggling to maintain it, even without CSPs entering the arena.


The war is lost. A new era is coming

Only few years ago, we saw consulting companies urging CSPs executives to react aggressively to OTT expansion that was pushing them into the “data-pipe” corner. Many CSPs tried to compete with agile startups who growth in a garage-labs and built the next big all-digital revolution. The battle was unfair, as the way I see it David usually wins over Goliath when it comes to speed to market and innovation.

Digital Service Providers (DSPs, formerly CSPs) now have a second chance to pick up the pace in the new digital world. They will need to become Digital service brokers and create an eco-system of OTTs and SMBs that can tap into CSPs’ huge infrastructure and information reserves to enhance their business.

Efficiency is the way forward

With these trends in mind, it is clear that CxOs must find innovative ways to spend their budgets more effectively. They need to identify initiatives to optimize CAPEX and OPEX, pinpoint current grey areas, creating new space for investments in customer-impacting initiatives.

These initiatives need to sustain high quality products. Quality is defined as the grade of adherence to requirements for a specified product or service (or person), hence quality is strictly related to the intention of the requiring entity. In consulting terminology it means that any initiative, particularly customer targeted, must be aligned with company strategic goals and vision, and organized in a strategic roadmap aimed at maximizing customer ROI.


Creating the strategic vision, organizations can rationalize the strength of the business impact needed to resonate with company objectives and, ultimately, generate the shareholder value requested by boards. The path from strategy to execution has a very important lever: metrics. In order to measure the success and quality of the results, business, financial and operational KPIs must be carefully selected before embarking on the journey to create a valued customer experience.

HPE Solution Consulting Services (SCS) has gathered key insights on metrics from real-world experience to help marketing departments measure the success of customer-oriented innovations in terms of processes, organizational changes, tools, and capabilities. In the impact chain the customer is the focus, while shareholders want to generate value on their investments and to positively impact the digital lives of end users. These two sides of the coin will become closely aligned to overcome common mistakes and divergences.

Choosing the right KPIs to measure success of a customer experience initiative focuses efforts within the organization. Dimensions like % of Customers - Marketing Opt-Out is required to identify the number of people select to opt-out of marketing promotions, this type of measure is leveraged to assess user’s characteristics and possibly preference for privacy.  The ability of tracking Stop Usage Events will be considered crucial to measure processes of bill shock prevention to avoid unsatisfied customers with unexpected payment due and service suspension. It is not only about making more revenues or proposing more profitable offers to customers through every channel but is also about understanding the relationship customers have with the Digital Service Provider. If opt-out increases (we have seen up-to 80% abandon rates) this means that outbound marketing is pushing too hard on the customer base. This will not only impact the topline because users will push back, it also will impact the bottom line, since customers will resent being over-contacted and will become easily poachable by competitors.

Compensation is not always the case for proactive churn prevention, but it is widely used in different markets. It is clear to me that there is a direct relation between this KPI and the degree of customer satisfaction. The more money needed to keep them happy, the less quality of experience is associated with company brand.


Authored by: Andrea Melissano - Business Consultant, HPE Solution Consulting Services



To learn more about Next Best Action and how HPE offers a practical approach with measurable outcomes download Marketing optimization and automation for DSPs 


For more information on HPE business consulting for marketing optimization visit the Solution Consulting Services web site



About the Author


I am working on business process consulting. My interests are in telecommunications space with a special focus on media market. I coordinate knowledge management activities and thought-leadership programs

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