Why Telcos in Emerging Markets Struggle to Meet Customer Expectations

In today’s hyperconnected world, customer expectations for speed, personalization, and seamless service have never been higher. Telecom operators, particularly in emerging markets across Africa, the Middle East, and APAC, face mounting pressure to deliver seamless, personalized, and high-quality services. However, many operators struggle to meet these demands, often finding themselves at a competitive disadvantage.

This struggle is not due to lack of ambition but stems from a combination of outdated systems, operational inefficiencies, and rapidly evolving customer demands. In this blog, we’ll explore these challenges and highlight the opportunities for telecom operators to turn the tide and meet customer expectations effectively.

The digital revolution has reshaped consumer behavior worldwide. Customers now demand:

• Seamless experiences: Whether purchasing data plans, resolving billing issues, or accessing support, customers expect speed and efficiency.
• Personalization: Generic, one-size-fits-all approaches no longer resonate. Customers want tailored offers based on their usage patterns and preferences.
• Omnichannel support: Modern consumers expect to engage with their service providers across multiple touchpoints—be it social media, apps, websites, or call centers—and receive consistent service.

In emerging markets, these expectations are further amplified by a growing tech-savvy population and the increasing adoption of smartphones. For instance:

• The GSMA reports that smartphone adoption in Sub-Saharan Africa reached 50% in 2023, and is projected to grow rapidly indicating a growing demand for advanced telecom services.
• Meanwhile, mobile data consumption in the Middle East and North Africa is expected to grow 4x by 2026, according to Ericsson.

For Tier-2 and Tier-3 telecom operators, keeping pace with these evolving demands is proving to be a formidable task.

Many telecom operators in emerging markets continue to rely on legacy systems—outdated Customer Relationship Management (CRM) platforms and fragmented operational tools—to manage their operations. These systems were designed for simpler times, prioritizing voice services and basic connectivity over today’s complex, data-driven needs.

The Problem with Legacy Systems:

• Inflexibility: Legacy systems lack the agility to adapt to new market demands or integrate with modern technologies like AI and Machine Learning.
• Data Silos: Without unified data, operators struggle to gain a comprehensive view of their customers, leading to missed opportunities for personalization.
• High Maintenance Costs: Legacy systems are expensive to maintain and upgrade, diverting resources from innovation.

The Financial Impact:

• Customer churn—a key pain point linked to poor service quality—costs Tier-2 operators in emerging markets up to $6 million annually. Legacy systems, unable to deliver real-time insights or proactive solutions, amplify churn rates.
• Inefficient systems add 5-10% to operational costs, as manual processes and redundancies hinder productivity.

To compete in today’s fast-moving market, operators need modern, telecom-specific CRM solutions that address these shortcomings.

Emerging markets are dynamic and unpredictable, requiring telecom operators to respond swiftly to changes. However, many Tier-2 and Tier-3 operators find themselves hampered by a lack of agility.

Challenges to Agility:

• Slow Time-to-Market: Rolling out new services or promotional offers often takes weeks or months due to outdated workflows and systems.
• Inability to Scale: Legacy systems struggle to handle rapid growth in subscriber bases or new service deployments, limiting scalability.
• Navigating Regulatory Constraints: Operators in these regions must navigate complex and evolving regulatory landscapes, adding another layer of complexity to their operations.

Missed Opportunities:

• The inability to launch targeted offers and value-added services costs operators an estimated $4.8 million annually in missed upselling opportunities.
• Competitors with more agile systems quickly seize market share by launching innovative services tailored to customer needs.

Agility is no longer optional. Operators must adopt flexible systems and workflows to stay competitive and meet customer demands head-on.

Today’s telecom customers are more informed and empowered than ever. They’re quick to switch providers if their expectations aren’t met, particularly in competitive markets where digital-first operators are gaining traction.

Key Customer Demands:

• Real-Time Service: Customers want instant activation of services, real-time data monitoring, and immediate issue resolution.
• Transparent Billing: Complex and opaque billing processes frustrate customers, leading to dissatisfaction and churn.
• Proactive Engagement: Customers expect operators to anticipate their needs, offering relevant products and resolving issues before they arise.

The Role of Technology:

Emerging technologies like AI, machine learning, and advanced analytics enable operators to meet these demands. For example:

• AI-powered chatbots can resolve common queries instantly, reducing wait times.
• Predictive analytics can help identify customers at risk of churn and provide personalized retention offers.

Unfortunately, operators relying on outdated systems often lack access to these capabilities, putting them at a significant disadvantage.

To overcome these challenges, telecom operators must invest in modern CRM platforms tailored to their industry’s unique demands. AviateCX, for example, offers a comprehensive telecom-specific CRM solution designed to address the pain points of Tier-2 and Tier-3 operators in emerging markets.

How AviateCX Helps Operators:

• Unified Customer View: Breaks down data silos to provide a 360-degree view of each customer, enabling personalized and efficient service.
• Agility and Scalability: Facilitates quick deployment of new services and seamless scalability as subscriber bases grow.
• Advanced Analytics: Delivers actionable insights, helping operators predict churn, optimize pricing strategies, and identify upselling opportunities.
• Cost Efficiency: Reduces operational costs by automating processes and eliminating inefficiencies associated with legacy systems.

Proven Results:

Operators who adopt modern CRM solutions like AviateCX report:

• 20-30% improvement in customer satisfaction scores.
• 15-20% reduction in churn rates.
• Significant increases in ARPU (average revenue per user) through targeted upselling and cross-selling campaigns.

The challenges facing telecom operators in emerging markets are undeniable, but they’re not insurmountable. By modernizing their systems and embracing customer-centric strategies, operators can:

• Improve customer satisfaction and retention.
• Unlock new revenue streams through data-driven insights.
• Stay competitive in an increasingly digital landscape.

Emerging markets are brimming with growth opportunities, but only for operators willing to adapt. With the right tools and strategies, Tier-2 and Tier-3 telecom operators can not only meet but exceed customer expectations, securing their place as market leaders.

AviateCX is here to help you navigate this transformation and revolutionize your telecom operations. Start transforming your telecom operations today, contact us.