Perish or Prosper: Investing in Your Company’s Digital Future
Digital transformation has become a common talking point for telcos.
The increase and prominence of “over the top” media services, otherwise known as OTTs, are beginning to outpace traditional services. The prominence of OTT services indicate changes in consumer behavior and a shift in the industry altogether.
It’s important for telcos to undergo this paradigm shift, but executing the right transformative strategy comes with smart and effective investments. Digital transformation goes hand in hand with proper digital investments. Where and what to put your resources in requires just as much scrutiny.
In this article, we’ll be outlining the rise in OTT services as well as the value of proper digital investments when shaping telco services for the future.
Increase in OTT Services
OTT media services stream content directly to viewers over the internet. They bypass telcos and other companies traditionally seen as controllers and distributors of media.
Over half of Americans are already using at least one OTT, about 52%, and many users prefer to stream content on mobile devices than any other medium.
What’s more, OTT users view an average of 2.5 hours of video content everyday on their smartphones. Over 50% of OTT users claim they won’t miss anything about conventional cable or satellite services.
A 2018 survey revealed that 48% of CSPs had yet to make a case for their own virtualization, though given the popularity of OTTs and mobile streaming services, that number is likely to change.
The rise of OTTs indicates change in consumer behavior. Telcos must find digital solutions to adapt to the current climate.
Importance of Digital Investments
Companies across industries are investing in digital transformation for their services.
The International Data Corporation reported that enterprises ramped up their digital transformation projects to the tune of $1.18 trillion in 2019. The digital transformation technology industry alone will be worth $6 trillion over the next four years.
This indicates that there’s no shortage of resources for telcos to turn to if they want to digitize their services. However, adapting to consumer changes involves putting money into the right resources. Doing so without a proper strategy won’t guarantee success for telcos trying to compete with OTT services.
Value of Data Investments
Understanding what consumers are interested in and delivering content that aligns with those trends and behaviors is important for telcos. In fact, 92% of CSPs are planning on investing in improved analytics. The better the data, the more effective the strategies.
Real-time analysis
Identifying recent developments by owning the right analytical tools to pinpoint these fluctuations will provide your telco with actionable foresight. Investing in technology that lets you see the impact of your strategies on viewers and listeners through real-time data will help you be far more proactive in delivering the right content.
Using insights such as customer segmentation can reveal new insights that lead to more effective digital strategies.
Predictive analytics
Sometimes delivering content that matches current customer expectations isn’t enough. Telcos should always try to look into the short-term future by identifying consumer trends and using those insights to craft their content.
Investing in predictive analytics will allow your team to estimate how a certain product, campaign, or service will perform. The more you understand what your consumers want before you launch, the smarter you and your team will become when delivering the right products.
This leads to greater brand loyalty and greater profits down the line.
Contextualize the data
Gathering outside data from other sources allows telcos to have a more holistic view of the overall industry. Focusing on just your own data only tells part of the story. Looking outward with more industry and non-industry related data can improve your decision making.
Leverage tools that can aggregate data from multiple sources to be more proactive with your digital transformation strategies.
Good Investments Means Great Returns
The best defense is an informed offense. Leverage your consumer data to deliver the services that your consumers actually want and need.
Making the right choices on what tools to invest in equals greater revenues and a more versatile telco service. Follow the story of your consumer data and craft a digital transformation strategy out of that framework.
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