BIZ104: Telstra's Customer Experience Management Strategy Analysis

This report provides an analysis of Telstra's customer experience strategy, focusing on its history, customer segments (individual customers and government organizations), and the voice of the customer. It examines Telstra's strategies for improving customer satisfaction, including initiatives like 24/7 support, simplified billing, and digital transformation efforts. The report also discusses the importance of building emotional connections with customers through an Omni channel approach and highlights the need for a Customer Differentiation & Data Strategy to address customer issues effectively. The analysis includes alignment diagrams illustrating customer interactions and problem-solving processes. Ultimately, the report emphasizes Telstra's commitment to becoming Australia's safest, fastest, and most reliable network.

Customer Experience Strategy 1
Subject code and title BIZ104: Customer Experience Management
Assessment Customer Experience Strategy: Analysis
Individual/group Individual report

Customer Experience Strategy 2
Contents
History of Telstra.............................................................................................................................3
Identifying the customer segments..................................................................................................3
Telstra and the Voice of Customer..................................................................................................4
Alignment diagram on Segment 1: Individual Customer................................................................4
Alignment diagram on Segment 2: Government Organisation.......................................................5
CEM Strategy..................................................................................................................................6
Conclusion.......................................................................................................................................7
References........................................................................................................................................8

Customer Experience Strategy 3
History of Telstra
Telstra Corporation Limited, popularly known as Telstra, founded in 1975 is one of the
biggest telecommunications companies with its headquarters situated in Melbourne, Australia.
Before this, the Australian telecommunications services were under the control of Postmaster-
General's Department (PMG), which was founded in 1901. In 1975, few commissions were
formed to replace PMG and later on the responsibility of the postal services was transferred to
the Australian Postal Commission. This was reconstituted as Australian Telecommunication
Corporation. The Overseas Telecommunications Commission which was a separate government
body established in 1946, merged with the Australian Telecommunications Corporation and
became a short-term company, AOTC. The AOTC was further renamed to Telstra Corporation
Limited in 1993. The company features in providing the best internet and fixed line network
services, operates pay television, mobile and other products and services.
Identifying the customer segments
The company is well known for its high-quality products all over the country. It delivers
telecommunication services in rural and urban Australia. It tries its best to reach the customers
through its primary and secondary sources. According to surveys, the company has varied
customer segments based on their tastes, needs and values. The social media also reveals that the
company has developed strong strategies to make a good hold in the market. The first customer
segment is the “Individual customer”, and second are the “Government Organizations”.
They aim is identifying the problem of their customer and solving it (Ray Gehani, 2013).
Their customer satisfaction from 6.8 in 2009 had reached to 7.3 in 2012. Their
telecommunication industry ombudsman complaints [TIO] have also seen a downfall from 3.1 to
1.9 in the previous years. Also, they have a 24x 7 support on twitter, service facility on Facebook
and a new online group called CROWD SUPPORT, where customers help customers.
The data clearly show that the company is working at its best to satisfy its customers. Aiming to
be customer friendly, the company has introduced a simple bill format and my account
summaries, which has lowered the frequency of call at the contact centers and all the basic
information is communicated to the customer via email (Zhu and Li, 2014).
As far as relation between Telstra and government organizations are concerned, the company has
taken measures in making the country globally digital in all these years which has promoted
economic development, bringing high revenue to the country. Though it has also given rise to
severe threats, and online hacking etc., still digitalization is like a survival strategy for the
government (Tay, 2003).
It has helped them in collecting and analyzing data more easily than before. Australia has been
ranked second in the UN ranking for the high-quality E-government.

Customer Experience Strategy 4
Telstra and the Voice of Customer
Telstra has developed a long-term strong relationship with its customers in Australia and in other
20 countries accounting to 16 million people through its MTE program which runs on 75
strategic initiatives. More than 66% people in the age group of 18-25 are using their best home
broadband service and are fully satisfied with it. The survey on voice of the customer on social
media and other online sites clearly reveals that the customers are satisfied with the usage and
durability of the products offered by the company. More than 50% of the people say that the
products are quite compatible with the user. 33 % of the people feel that the products are real
worth for money. But still, the company is facing issues related to customer experience. For this,
a Customer Differentiation & Centralized Data strategy can be built in which the company
will interact with the customer, identify its tastes and basic needs and customize the product as
far as possible (Blitz, 2017).
There will be separate zones built, which will be approachable to the customer via customer
services. The customer will put his problems in front of the representatives, and depending upon
what the problem is, will be diverted to various departments. A centralized data feedback system
will store all complaints registered with the company and will be accessible to all employees of
the company (Kim and Jin, 2015).
The following strategy can also be explained in the form of an alignment diagram (Bassi,
Pagnozzi and Piccolo, 2015).
Alignment diagram on Segment 1: Individual Customer
3 PRODUCT RELATED ISSUE BILLING 1
2 CUSTOMER SERVICE
CUSTOMER CALLS THE
REPERESENTATIVE OF THE COMPANY
HOW CAN WE HELP
YOU? [the helpline zones]
ISSUE RELATED DESK
REPRESENTATIVE LOOKS INTO THE
MATTER, TRIES TO SOLVE IT. IF
NOT, COMPLAINT GETS
FORWARDED TO THE
INFO ON PAYMENTS
INFO ON
VARIOUS
PRODUCTS
OFFERED BY
THE

Customer Experience Strategy 5
Alignment diagram on Segment 2: Government Organisation
THE COMPLAINT/ ALL OTHER
DATA GETS SAVED IN THE
CENTRALIZED DATA
COMPLAIN
ZONE
IDENTIFYING THE TASTE
OF THE CUSTOMER AND
CUSTOMIZING THE
PRODUCT.
The complaint gets
solved immediately
The management resolves the issue
and forwards the solution to the
customer through its
Government Organisation tells the
problem to the company’s
The company discusses the matter
at different levels and tries to find
a solution.
Got the solution and share the
same with the government
organization.
Proposal accepted.Proposal rejected.

Customer Experience Strategy 6
Shares with the government
CEM Strategy
The most effective and successful CEM strategy for any company is to build an emotional
connection which gradually takes the company to higher levels, less complications and more
money- means higher profits (Kim and Kim, 2015).
If the customer is emotionally connected with the product, he uses it for a longer period of time,
and also tells other people about the benefits of using that product, which creates a chain and
attracts new customers without doing much effort. An Omni channel approach, i.e., the easy
accessibility of the products can be made available to the customer, both online through mobile
apps and websites, information and promotion of the product on social media and offline at the
stores. The best CEM strategy according to me is the Customer Differentiation & Data
Strategy (LIU and CHENG, 2012).
The data and the problems faced by the customer should be accessible in such a way that every
stakeholder, right from top management to front office people can easily analyze the problem
and take suitable actions on it. For example, a staggering 62 percent of people have issues with
internet speed provided by the company. The problem was due to speed and reliability issues.
These issues must be resolved as early as possible. Also, the data related to such issues must be
centralized which is accessible to all. Addressing complaints in lesser time will bind your
customers for a longer period of time and will build a trust on the company (Mehta, 2016).
Else, if the customer starts feeling that the complaints and problems are not taken care of, they
might jump and purchase the products from the company’s competitors giving a downfall to the
company both monetarily and emotionally. If required, the products offered by the company can
also be customized according to the customer’s needs (Mark, Niraj and Dawar, 2012).
The company forms new strategies
to come up with new solutions.

Customer Experience Strategy 7
Conclusion
Telstra Corporation Limited has already been serving a great customer satisfaction in the
previous years. The company has also introduced new strategies which shall be beneficial to the
customers. It is working on reducing cost of the product, making the products more simplified so
that it is easy for the customer to handle. As committed, the company had increased the capacity
for fixed broadband connections which gradually satisfied the customers and the company
crossed the Netflix speed index in the past months. The company aims to solve the problems
with its new strategies. In future, Telstra promises to become Australia’s safest, fastest and most
reliable network.

Customer Experience Strategy 8
References
Bassi, M., Pagnozzi, M. and Piccolo, S. (2015). Product Differentiation by Competing Vertical
Hierarchies. Journal of Economics & Management Strategy, 24(4), pp.904-933.
Blitz, A. (2017). Lessons from the steel industry: if you can’t compete on price, innovate your
way to value-added differentiation. Strategy & Leadership, 45(5), pp.26-32.
Kim, K. and Jin, S. (2015). Branch-Based Centralized Data Collection for Smart Grids Using
Wireless Sensor Networks. Sensors, 15(5), pp.11854-11872.
Kim, S. and Kim, Y. (2015). The Development of Customer Experience Management
Competency Scale in the Manufacturing industry - Top Plan DNC Customer Experience
Management Casestudy -. KOREA SCIENCE & ART FORUM, 20, p.135.
LIU, H. and CHENG, L. (2012). Priority-based service differentiation and rate control
strategy. Journal of Computer Applications, 31(6), pp.1458-1460.
Mark, T., Niraj, R. and Dawar, N. (2012). Uncovering Customer Profitability Segments for
Business Customers. Journal of Business-to-Business Marketing, 19(1), pp.1-32.
Mehta, A. (2016). A Customer Relationship Management Model to Integrate Customer
Relationship Experience Quadrant and CRX Life Cycle. SSRN Electronic Journal.
Ray Gehani, R. (2013). Innovative Strategic Leader Transforming From a Low-Cost Strategy to
Product Differentiation Strategy. Journal of technology management & innovation, 8(2), pp.144-
155.
Tay, H. (2003). Achieving competitive differentiation: the challenge for automakers. Strategy &
Leadership, 31(4), pp.23-30.
Zhu, B. and Li, J. (2014). A Large Site Centralized Data Classification Strategy Based on User
Value. Advanced Materials Research, 1030-1032, pp.1619-1622.