The fighting has intensified and there may be no letting up. The MIddle East? Well, yes, but also the telecom war. I've observed renewed efforts to attain subscribers as companies such as AT&T and Time Warner duke it out to sell the "triple play" of voice, video and high-speed online access.
AT&T, which has taken a thought leading role in this new era of multi-service, is even offering a "quad pack" that includes cell phone service from Cingular. AT&T has even seen profits rise 81% over the last year thanks to new telecom synergies. "Our SBC/AT&T merger integration projects are very much on plan, generating synergies and benefiting customers," said AT&T Chairman and Chief Executive Officer Edward E. Whitacre, Jr. "These results demonstrate strong momentum as we look forward to the second half of the year and completion of our pending acquisition of BellSouth."
Time Warner, meanwhile, has found that it's cable and broadband properties are just about the only thing keeping it profitable, somewhat covering over the mess that is AOL-Time Warner -- a merger that was renounced this week by AOL's founder.
What interests me about this war is that telecom companies have been notorious in recent years for failing to keep the loyalty of customers. Cable companies, of course, rarely had serious competition for television. Now, all parties are fighting to be the "one-stop shop" for your telecom needs.
You have to admit, it's an attractive concept. Who is isn't overrun and confused by their telecom bills? This move represents a real chance to cross-sell and up-sell customers. If it is managed well, the loyalty that is so critical to sustain profits may at last be attained.
This is where customer intelligence comes in. I think telecom and cable copanies must become increasingly adept at monitoring their accounts and anticipating market changes that might encourage someone to defect. Has the price of broadband fallen dramatically in the open market? Then, you should drop your rates on that one service and make sure your customers know that they were being well cared for.
In addition, I would suggest that AT&T service agents start guiding callers to web sites that let them self-configure and test out different rates for different packages. Theoretically, you can do that on your own now. But these are big ticket purchases. Consumers want some human guidance. However, the bundles that are now being configured are simply far too complex to convey or discuss on the phone. You have to see it online and see how the price changes as you play with different options.I am talking mass customization with a human touch.
Beyond that, it is critical to monitor the demographics, behaviors and stated priorities of individual customers (and families). These companies need to anticipate needs rather than merely respond to them. Customer intelligence may be the key to at last creating loyal and profitable customers.
