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Why all Telecom Marketing and Product management is wrong
1. Can you believe that it’s the French who get it right? Almost all Marketing & Product Management of Telco Services is Wrong Rudolf van der Berg Logica Management Consulting Rudolf.van.der.berg@logica.com +31 6 13414512 http://internetthought.blogspot.com
2. Outline Telcos fail at marketing because they are schizophrenic about their role. They are connection providers, not Google All of them offer the same services with no innovation Free.fr has accepted it’s telco role. It has1 triple play offer for 30 euro, but with scores of services you can’t get elsewhere This offer together with operational excellence has transformed the French market Pigs will fly before most incumbents apply this, but challengers should seriously evaluate this model
3. Marketing isthe activity, set of institutions, and processes for creating, communicating,delivering, and exchangingofferings that have value for customers, clients, partners, and society at large. (American Marketing association)
14. The Philosophy Offer the best product in the market. Deny competitors competition on price or bandwidth. Prevent Churn Services don’t need to add to ARPU, but to make Free more attractive. No fake projected take-up + profits From €30 subtract line-rental, tax, capex, opex and profit, remainder finances new services. Keep the back-office (provisioning, billing) simple (1 offer) Introduce something new regularly
15. How can you copy Free Accept that you work for a telco and not Google or in Media Think up all the cool things you want to do with mobile, fixed, wifi, television, telephony etc. Simplify your provisioning and billing to one product (with some top ups) Start building. Listen to your customers. Improve every time Work 10 years
17. Bonus: TV-Perso Broadcast yourself All you need is a camcorder (or any other S-video device) connect it to the Freebox and it sends it out to other Free.Fr users. Like Youtube, but can do live broadcasts
18. Bonus: operational excellence Design own hardware: DSLAM, Freebox modem, In-House Powerline communication (FreePlug) Design own software: Freeplayer (TV on PC), Freebox Low headcount: 1000 staff and 850 call center Hardly any Sales or Marketing people (their customers call themselves Freenauts and are the best sales and marketing)
19. Rudolf van der Berg Logica Management Consulting Rudolf.van.der.berg@logica.com +31 6 13414512 http://internetthought.blogspot.com