Lundgaard Bennedsen posted an update 1 month, 3 weeks ago
The telecom companies usually have followed an increase trajectory previously decade through rise in subscriber base in addition to adding considerable numbers on their annual revenue. They have kept the pace using the competitors and still have unquestionably game with great results during the past. In the current times, they may be facing with the enormous challenge of adaptation towards the matured, highly penetrated markets coupled with global recessionary effect. Therefore, a change in paradigm to adapt their business models to the scenario is highly required and the demand for the hour is the customer experience management to accomplish a greater retention ratio.
Challenge in modern telecom industry – Customer retention
Nowadays in this day telecom industry which has attained high penetration level, acquiring a customer is getting even costlier. Industry analysis claims that only 25% from the acquired customers stick to the organization after an year’s some time to with an average only 20 -30% from the entire usage is revenue earning/profitable customers. This dugs a deep hole from the balance sheet of the telecom service providers. Because of the churning aftereffect of the shoppers, there is a huge imbalance created in gross additions of the customers and net addition.
Forward path: Method to customer retention – Customer experience management
Therefore, the most important challenge to the telecom operators worldwide is managing customer churn. It affects profitability with the company if your customer churns ahead of the company can earn back it it incurred in getting the buyer. Therefore, it’s very critical to indentify the profitable customers and retain them.
Retaining the profitable customers includes 2 steps:
1. Identifying the revenue earning customers through the entire client base
2. Managing the customer experience and customer value for that revenue earning customers
Identifying the Revenue earning customers
The telecom service providers need to define their business logic for identification with the revenue earning customers, as an example: the shoppers with usage more than ARPU are called high valued customers, or even in the event of pre-paid, customers recharging greater than INR 250 a month (In Indian scenario) are thought as revenue earning. With regards to the business rules the complete client base needs to be segmented into revenue earning customers and non-revenue earning customers. Managing customer ARPU Average revenue per customer. Managing customer data in scale of 40 – 50 millions is often a challenge. They can do this by using various business analysis tools (eg: SAS, SPSS, Teradata, etc.).
Customer experience management
Following your identification from the valued/revenue earning customers, managing those identified band of clients are of utmost importance.
Emphasizing customers rather than products
During the last years, the telecom agencies have targeting introduction of new products. They’ve got originated new products/services after which sought to locate or produce a niche for them. But increased competition on the list of existing companies and minimize barrier to entry for brand new players has ended in the development in predatory activities from the telecom industry. Moreover, the price of purchase of customers has expanded considerably. Hence, in the current times, you will find there’s gradual change in focus from introduction of the latest products for acquiring clients to customers’ experience management is noted. Currently, the Telco’s need to concentrate on retaining the current valued customers and targeting more wallet share of each customer by making more value and improved customer experience.
For example: In UK, O2 has aligned its functional silos to obtain its existing customer’s perspective to make product decisions and designing promotional offerings. They’ve got dedicated to retention by placing equal weight for renewals and acquisitions. By this the company has reduced its churn figure to half its existing number.
Nintendo has generated an internet community for capturing customer insights and offers incentives inturn of customer information. From this Nintendo has gained valuable insights into market needs and preferences.
Customer led customization model
There is an underlying assumption how the service providers will dictate the way forward for telecommunication services. But the growing bargaining energy absolutely free themes, there’s a shift in paradigm and also the companies need to customize their model according to individual customer preferences. Now the business will track the lead with the customers in designing and promoting services meant to meet specific needs of the customers. Under this circumstance, the service providers need to get the unique needs of the people customers, and after that make an effort to develop services which satisfy those multifaceted needs.
Using this type of model, the mass marketing gives way to the customized survey and also the survival of the providers is determined by the business’s capacity to meet customer’s demand with an ongoing basis. In other words, customers will dictate the service terms they mean to receive.
Developing multiple channels
The service providers should develop multiple channels for sales and support to boost the customer experience. Enhancing the footprint by adding on retail outlets is amongst the options that your telecom agencies have practiced since ages. Traditional channels like telemarketing companies also ended up in focus. With all the boost in competition and economic slowdown, the operators are seeking economical ways to serve the clientele whilst keeping the service quality intact. Eventually the agencies want to move majority of its sales and services online through the web to realize better economics. Apart from attaining an economical solution by transferring to web channels, the operators can empower the shoppers to complete various activities at a less expensive price compared to retail channels.
On the internet channels, a person are able to do numerous activities like:
– Bill viewing and internet-based payment
– Online register of an complaint for support
– Altering price plan and subscriptions
– Viewing the product or service catalogue and get products/services online
In addition to the previously listed activities, the operators can offer promotional services and cross-sell other products online. The operators can have added revenue by ticker management on their websites and advertisements.
To deliver the customers can use a consistent and connected experience, the operators must integrate every one of the existing channels. Every time a customer walks-in to a store, the client service representative should be able to retrieve his/her past interactions over-all the channels to serve him/her in the most beneficial way.
The operator has to analyze/monitor what sort of customers begin using these channels. Based on the available data of customers’ usage of these channels, the operators can find out the preferences of the baby customers and mould their offering accordingly. From this the operators can take shape up customer experience by empowering them to perform activities and so enhancing the service value for them.
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