Understanding Customer Needs

To genuinely transform an industry, it is crucial to comprehend your customers deeply. This involves extracting insights from frontline employees, who are in the best position to share valuable information about customer challenges, preferences, and unmet needs. This understanding enables companies to customize their products, services, and overall customer experiences. For instance, MCE Systems has conducted 23,000 interviews with telecom customers, gaining significant insights into customer friction points that can be addressed through superior technology.

The mobile customer experience often suffers from disconnection and friction. However, telecom companies can take charge of device-related journeys, seizing opportunities in areas like trade-ins, repairs, and maintenance. This can be accomplished by integrating various channels and digitizing processes for both employees and customers, leading to a more cohesive experience.

Every telecom provider constantly battles competition and customer attrition. There’s always the risk that customers may switch providers once their contracts end. However, satisfied customers are less likely to leave. One effective strategy to keep subscribers engaged is to minimize friction in their device journeys. A seamless experience across channels for repairs or upgrades can significantly reduce churn rates. MCE's digital-first device lifecycle management platform promises to deliver on this front.

In this interview, we have the privilege of speaking with Robert Hackl, CMO and Global President of MCE Systems. Robert's extensive experience in the mobile sector includes senior roles at Deutsche Telekom, T-Mobile US, Vodafone Germany, and Sprint. He founded his first tech startup at the age of 18 and spent a decade as a consultant at McKinsey & Company.

To better understand you, Robert, can you share your background?

I hail from a small town in Austria, where I developed ambitious and innovative ideas early on. My fascination with technology led me to establish my first business specializing in IT and Accounting while still in high school. I later earned dual master’s degrees in international business from Vienna and Paris, an MBA from Kellogg, and a PhD in Marketing focusing on "Designing Value-Creating Product Innovations". Currently, my family and I divide our time between Europe and the US, enjoying our life with our young son. At my core, I consider myself a business builder who believes in the possibility of achieving anything.

Three highlights stand out in my career:

1. As the young CEO of Tele 2 Austria, I successfully turned around a struggling company, shifting it from negative EBITDA to positive cash flow.

2. At Vodafone Germany, I played a pivotal role in transforming it into the top telecom provider based on NPS and digital transformation metrics. When I started, the employee NPS was -29; it eventually rose to +68, and we won the Best myVodafone App Award in 2016 globally.

3. As GM of Handset Financing and Insurance at Sprint, my team generated $1.2 billion in recurring profits through a new model that enhanced profits and customer satisfaction, earning us an innovation award for our groundbreaking product.

   What makes your work at MCE disruptive?

At MCE, our mission is to enhance customer experiences for telecom operators. We aim to eliminate friction in device-related journeys, including trade-ins, upgrades, onboarding, and repairs.

We've pinpointed three main friction sources that complicate the lives of both telecom employees and customers. First, frontline staff and customers often lack the necessary data to address requests effectively. Second, solutions across channels are disconnected. Lastly, systems do not maintain a history of customer-device interactions, forcing customers to repeat their issues.

We believe that a digital-first approach is the best way to address these challenges. By digitizing the front end and integrating it with backend systems, we can significantly reduce friction for both consumers and frontline employees. This ultimately leads to enhanced satisfaction and decreased churn for telecom providers, while also creating new opportunities for upselling products and services.

My initial inquiries upon joining MCE were about understanding consumer perceptions of our digital-first solutions and assessing the operational and financial impacts of our systems on telecom companies. We prioritized these aspects, which has been transformative in how we market and brand MCE's innovative technology over time.

Can you recount a humorous mistake from your early days and the lesson learned?

During my tenure at McKinsey & Company, I led a project for a struggling business unit that had been losing money despite years of investment. In a review meeting, I was mistakenly not recognized as the lead, and the client posed all their questions to my senior colleagues. To grab their attention, I humorously referred to their unprofitable unit as a 'hobby.' It definitely got a reaction, but ultimately, we were able to turn that business around, and we later laughed about it.

Who were some of your mentors, and how did they influence you?

I've had the privilege of learning from several remarkable individuals. Three notable mentors include:

1. Thomas Baumgartner, Senior Partner at McKinsey & Company: He taught me about the importance of simplicity and focus in leadership and communication, helping me streamline my approach to problem-solving and team management.

2. Jim Alling, former COO of T-Mobile US: Jim instilled in me the value of emotional intelligence and storytelling, which has been crucial in shaping my leadership style.

3. Philipp Humm, former CEO of Vodafone Europe: Philipp encouraged me to refine my operational skills and taught me how to effectively communicate strategic ideas to engage a large team, which significantly contributed to my success in turning around employee engagement levels.

   When is disruption beneficial, and when is it not?

Disruption is generally positive, particularly when it addresses inefficiencies, democratizes access, or promotes sustainability. For example, digital photography revolutionized the industry by rendering film cameras obsolete while enhancing user experiences. However, disruption can have negative consequences when it exacerbates inequalities, raises ethical concerns, or undermines long-term stability for short-term benefits.

Five Strategies for Industry Transformation

1. Deeply Understand Your Customers: Engage frontline teams to gather insights about customer pain points and needs. MCE’s extensive interviews with telco customers have unveiled critical friction points that technology can address.
2. Challenge Established Norms: Foster a culture that encourages experimentation and challenges the status quo. MCE has pioneered many industry innovations over the past 18 years.
3. Utilize Technology for Enhanced Customer Experience: MCE has harnessed advanced technologies, such as AI and neural networks, to streamline processes and ensure accurate evaluations in device trade-ins.
4. Develop a Compelling Brand Vision: A clear brand vision that reflects your mission and values can inspire stakeholders and foster innovation.
5. Implement Measurable KPIs: Establish clear KPIs to track progress and success, enabling real-time adjustments to maximize customer impact.

What’s next for MCE?

MCE is committed to enhancing seamless device-related journeys through its digital-first device lifecycle management platform. Upcoming innovations include connecting with AI ecosystem partners, such as ChatGPT, to improve real-time customer support and enhance user experiences.

Do you have a book or resource that has significantly influenced your thinking?

One impactful book is The Pyramid Principle by Barbara Minto, which greatly improved my communication skills as a consultant. The concept of situation, complication, and solution (SCS) helped me structure problem-solving narratives effectively.

What is your favorite quote about leadership, and why does it resonate with you?

"Disruptive leaders don't just break the rules; they change the game." — Richard Branson. This quote resonates with us at MCE as we strive to revolutionize the landscape for telecom operators and partners through innovative, integrated solutions.

If you could inspire a movement in the telco industry, what would it be?

I would advocate for a shift to digital-first solutions across all customer journeys, particularly those related to devices. This change would create inclusivity and bridge the digital divide, ensuring everyone can benefit from technological advancements.

Our mission has always focused on making a positive impact. By repurposing high-quality mobile devices, we can provide affordable technology to underserved regions, positively influencing lives regardless of location or socioeconomic status.

How can readers connect with MCE online?

Visit our website at http://mce.systems and follow us on LinkedIn for insights and updates on our innovations.

Thank you for sharing your insights with us!