The CEOs of technology and service provider companies (TSPs), including telcos, are prioritising investment in customer experience ahead of new products and services, according to a new report.

Innovation spending is increasingly being directed to find new ways of engaging customers, which includes sales, marketing and customer success management efforts, Gartner has found.

Sixty-two percent of survey respondents placed sales in their top three areas for investment and 51 percent had marketing in their top three, compared with only 37 percent for product development.

The survey involved 501 CEOs from North America and Western Europe at TSPs with annual revenue from $10 million to more than $1 billion.

CEOs are investing in customer-facing roles in a bid to win more deals, with sales and marketing effectiveness seen as being more important in hitting future growth targets, the research house said.

Todd Berkowitz, Research Vice President at Gartner, said: "Gartner has long believed that the best product doesn't always win and that many other factors contribute to success, especially a positive customer experience.

"Customer engagement received the highest investment from an innovation standpoint with 42 percent of TSP CEOs listing it as one of the top two priorities, ahead of new products and services and significantly ahead of internally focused activities.”

[Read more: Virgin Media selects Salesforce to deliver omnichannel customer experience]

This focus is, in part, driven by a need to differentiate themselves from the competition.

According to Berkowitz, just five percent of technology vendors are very or extremely effective at differentiating themselves.

He said: “Differentiation continues to be a major issue for TSPs, and it's even harder when the differentiation is tied to product features and capabilities.

"Superior customer engagement, which leads to a superior customer experience, can be a powerful source of differentiation, although only when based on real proof, versus simple claims."

Click here to watch videos from European Communications’ 2016 Customer Experience seminar

More News

Iliad enters content game in France, finally launches Italian mobile business Iliad enters content game in France, finally launches Italian mobile business Iliad has acquired football rights in France and launched its opco in Italy as it looks to reboot after a disappointing set of financial results. More detail
Three UK appoints new CCO, CFO Three UK appoints new CCO, CFO The departure of Three UK's Chief Commercial Officer after just 18 months in the job has triggered a shake-up of the mobile operator's top team. More detail
TalkTalk to sell enterprise customer base to Daisy as it registers full-year loss TalkTalk to sell enterprise customer base to Daisy as it registers full-year loss TalkTalk has agreed to sell 80,000 business customers to rival Daisy Group in a £175 million deal. More detail
A1 Telekom Austria Group rebrand reaches Bulgaria A1 Telekom Austria Group rebrand reaches Bulgaria Bulgaria is the third A1 Telekom Austria Group opco to get rebranded as the telco looks to market itself as a provider of "advanced" IT, IoT, cloud and content services. More detail
Orange Business Services puts IoT to use on saving ships’ fuel costs Orange Business Services puts IoT to use on saving ships’ fuel costs Orange Business Services has expanded its work with Dobroflot by developing a customised IoT solution for the Russian fishing company. More detail
    

 

European Communications is now
Mobile Europe and European Communications

  

From June 2018, European Communications magazine 
has merged with its sister title Mobile Europe, into 
Mobile Europe and European Communications.

No more new content is being published on this site - 

for the latest news and features, please go to:
www.mobileeurope.co.uk 

 

@eurocomms