Unveiling the first-half results, Telstra CEO Andy Penn stated results are in line with the FY guidance, reflecting changes underway across the business. “Progress has been achieved on T22 strategy with good financial momentum and global leadership in 5G”.
Acknowledging the emergence of new technologies as significant, Mr Penn said the technology changes provided Telstra digital opportunities while posing questions on workforce impact and ethics in AI. Citing the example of Online gaming, the Telstra boss said there are “significant opportunities for Telstra in new telecom technologies”.
Linking the devastating bushfires to climate change, Telstra CEO acknowledged climate change as “significant”. The estimated financial impact of bushfires on Telstra’s numbers is about $50mn.
Telstra is also subject of an ACCC investigation regarding possible unconscionable conduct. Mr Penn revealed he travelled to NT and WA territories to hear the affected clients and apologised to the communities personally.
T22 Strategy
Simplification continues to be a major part of the T22 strategy. Among the four pillars of T22 strategy, Simplification stands at number one.
T22 strategy is helping simplify products and operations improving client base
The Simplification agenda is not unique to Telstra though. Commonwealth Bank, National Australia Bank, Wesfarmers businesses are some of the key enterprises with a heavy focus on simplification.
For more details of T22 strategy and what it means to Telstra digital initiatives, please refer this deep dive by ITVibes.
“Customer Experience Investments Paying Off”
Digitisation initiatives as part of T22 strategy are paying off. In a confirmation of the digital results delivered, Telstra highlighted about 50% of all service transactions are conducted online. Although sales transactions are not as high as the service transactions, it’s just over a quarter of the overall sales transactions at about 26%.
In comparison, leading financial institution Commonwealth Bank has achieved about 64% of transactions online while leading insurer Suncorp’s percentage of new sales is about 59% online.
Telstra also confirmed to have a single salesforce console to replace multiple agent facing systems while saving over 250,000 person-hours with process improvements and automation initiatives.
Upgradation and digitising CRM, Billing, HR and other systems to improve Customer Experience are some other key initiatives. This is apart from the launch of several beta trials, faster activation, easier digital self-service, simplified charging experience for clients.
New App Replacing Telstra 24×7
Telstra confirmed replacing the current Telstra 24×7 app with a new app MyTelstra. The app in its current avatar has about 4mn active users but the steady numbers or lack of repeated visits mean no urge to check or visit the app. However, Telstra believes the new app will provide improved personalisation and promotional offers.
In comparison, Commonwealth bank app has over 5 million Australian users with about 64% transactions online while Suncorp has significant initiatives planned in the digital space as well as indicating a trend to provide customer service online while reducing the load on call centres and optimising costs.
Telstra confirmed reduction in the number of calls to its contact centre by 19 million since 2016. That’s about 50% of the total calls leading to cost benefits. Telstra revealed it is on track to achieve its goal to reduce $2.5bn costs by FY 2022. Digitisation, Automation, Simplification and offshore tech centre in Bengaluru are expected to deliver greater cost benefits for Telstra.
Also read: Telstra’s T22 Strategy and what it means to Digitisation
