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Summary

Telstra Vantage is Telstra's annual two-day exhibition for its enterprise customers and partners. This event enabled us to talk to Telstra executives about the reorganization of their enterprise offer and segmentation and the big improvements in customer satisfaction that this is delivering. The strategy is a case study on successful segmentation.

Simplicity and segmentation are key to satisfaction

Telstra Enterprise is facing a series of disruptive events. The shift of the Australian access network to the National Broadband Network (NBN) requires migration away from traditional Telstra enterprise services such as Frame Relay and Integrated Services Digital Network (ISDN) over the next two years.

In response, Telstra is changing its enterprise product suite with a renovation and simplification of its offer, while also reducing its exposure to bespoke solutions that cannot scale.

Telstra's Connected Workplace suite, announced at the Vantage meeting, is the centerpiece of this shift. It offers voice, collaboration, video, and connectivity with security, all implemented on a new technology stack. Connected Workplace is priced on a per-seat, monthly basis, with a choice of mobile and service add-ons, such as Office 365. The offer launches commercially later in 2018.

Telstra has already restructured its enterprise segmentation to streamline its channel performance. While Telstra retains its Strategic (a few), Major (a few hundred), and Premium (a few thousand) accounts, it has halved the customers in these top-end categories to just under 6,000, allowing more focus. The balance (along with more SME customers in the future) will be targeted for Connected Workplace.

Channel management for top-end customers has been streamlined with a new Digital Service Hub, offering self-service and inbound/outbound calling and based on Salesforce. There is a new emphasis on proactive outbound calling to support customers and nip problems in the bud.

Telstra has hard evidence that this strategy is delivering. The implementation of the new segmentation has seen enterprise Net Promoter Scores (NPS) shift from mild dissatisfaction to high satisfaction over 12 months, illustrating the importance of aligning segmentation with customer needs.

Appendix

Further reading

"Telstra brings Office 365 telephony to Australia," ENS001-000022 (April 2018)

"Telstra sharpens product focus to move up the B2B value chain," ENS002-000009 (December 2017)

Author

David Kennedy, Practice Leader, Asia-Pacific

david.kennedy@ovum.com

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