DigiTech Magazine - UK CIO2020 - Autumn 2015 | Page 14

BUSINESS .................................................................................................................................................................... TECHNOLOGY Top 5 tips to make quadplay successful WHAT IS QUADPLAY? Quadplay is the merging of landline, mobile, broadband and television services into a single customer offering. 2014 saw several big mergers and acquisitions in the UK Media and Telco market as companies look to position themselves as multimedia providers. Virgin Media took the lead and other providers have quickly joined the market. Analysts have been eager to highlight concerns around competition, customer service and agility to change, while also referencing the large returns Quadplay could bring. This article explores why companies are pursuing Quadplay, what the key dangers are and our 5 top tips on how to overcome them. the pace of the market will slow, or become any more predictable, and so Quadplay could be seen as their response to this, trying to ensure whichever way the market moves, they’re covered and will continue to remain relevant. WHO ARE THE KEY PLAYERS IN MEDIA AND TELCO? WHY ARE COMPANIES PURSUING QUADPLAY? Customer Experience – Customers now demand content anytime, anywhere. The UK leads the world in mobile data usage and with growth in internet and mobile traffic continuing unabated Quadplay can be seen as ‘giving the customer what they want.’ Customer experience (CX) improvements can augment Quadplay to drive sustainable top-line revenue growth. CX improvements create a virtuous circle, increasing customer engagement and brand loyalty, leading to greater consumption across all platforms. It is this virtuous circle that has led to executives targeting Quadplay. Results like AT&T achieved in 2014 when revenue from its U-verse service grew 28% after improvements in the TV and Internet service provider (ISP) product experiences show what is possible. Data – There are potential big payoffs for the providers if they can capture the whole customer spend as the ‘me too’ effect takes hold. Quadplay providers will have a wealth of customer data, giving them incredible insight into people’s viewing and browsing habits and blowing open the door to upselling and engaging customers in more high-value services Revenue – Customers who take up the Quadplay offer will be consuming a wider range of services, across multiple channels. More services means more revenue per customer. As customers become more valuable and Quadplay companies have a richer source of data about that customer, they should be able to offer them tailored services and offers to keep them happy and engaged Relevance – Previously these companies have been caught out by the fast paced moves of the market (mobile data, online streaming/Netflix, etc.) There is no sign that 1 http://www.telecomstechnews.com/news/2014/aug/01/can-Quadplay-take-uk/ 2 Ofcom Consumer Experience Report 2014 14 CIO Magazine Autumn 2015 Issue Comcast is leading the way in the US. However, analysts predict only 13% of households will take a Quadplay package by 2016. The US shows that results will not be achieved overnight. 1 WHAT ARE THE DANGERS? Customers will expect increased levels of service from Quadplay companies, meaning these companies will need to truly integrate, focus on delivering what the customer wants and ensuring positive customer interactions across all platforms. Evidence showing, 15% of bundled television customers, looked to switch in 2014 compared to 8% of regular customers 2 shows that if companies don’t deliver what consumers want they will have little hesitation in leaving. The integration challenge (culture, people, technology). Merging these