Welcome to Tea with DidiSep 19, 2019
Lausten Bennedsen posted an update 1 month, 2 weeks ago
The telecom service providers have always followed a rise trajectory previously decade through boost in client base and also adding considerable numbers to their annual revenue. They’ve got kept the speed together with the competitors and still have played the game with great results during the past. In the current times, they are facing having an enormous challenge of adaptation for the matured, highly penetrated markets along with global recessionary effect. Therefore, a shift in paradigm to evolve their business models to the scenario is highly required as well as the need of the hour will be the customer experience management to achieve a greater retention ratio.
Challenge in modern telecom industry – Customer retention
In the current day telecom industry that has attained high penetration level, obtaining a customer becomes even costlier. Industry analysis states that only 25% from the acquired customers stick with the corporation after an year’s some time to while on an average only 20 -30% from the entire customer base is revenue earning/profitable customers. This dugs a deep hole in the balance sheet of the telecom agencies. Because of the churning effect of the customers, there is a huge imbalance created in gross additions of the customers and net addition.
Forward path: Approach to customer retention – Customer experience management
Therefore, the major challenge to the telecom operators around the globe is managing customer churn. It affects profitability with the company if the customer churns prior to the company can earn back it it incurred in establishing the consumer. Therefore, it is rather essential to indentify the profitable customers and retain them.
Retaining the profitable customers includes 2 steps:
1. Identifying the revenue earning customers from your entire customer base
2. Managing the customer experience and customer value to the revenue earning customers
Identifying the Revenue earning customers
The telecom companies must define their business logic for identification from the revenue earning customers, for example: absolutely free themes with usage over ARPU are called high valued customers, or perhaps case of pre-paid, customers recharging greater than INR 250 per month (In Indian scenario) are believed as revenue earning. With respect to the business rules the complete subscriber 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 a challenge. They can do this by using various business analysis tools (eg: SAS, SPSS, Teradata, etc.).
Customer experience management
As soon as the identification in the valued/revenue earning customers, managing those identified gang of customers are most important.
Focusing on customers as an alternative to products
In the last years, the telecom companies have dedicated to introduction of the latest products. They have originated new products/services and after that sought to find or create a niche for them. But increased competition one of the existing agencies minimizing barrier to entry for brand spanking new players has triggered the increase in predatory activities from the telecom industry. Moreover, the price of acquiring customers has increased considerably. Hence, nowadays in this times, there is a gradual change in focus from introduction of new products for acquiring new clients to customers’ experience management is observed. Currently, the Telco’s should give full attention to retaining the prevailing valued customers and targeting more wallet share of each one customer by creating more value and improved customer experience.
By way of example: In the united kingdom, O2 has aligned its functional silos to have its existing customer’s perspective to create product decisions and designing promotional offerings. They have got devoted to retention by placing equal weight for renewals and acquisitions. With that the organization has reduced its churn figure to half of its existing number.
Nintendo has produced an internet community for capturing customer insights and will be offering incentives inturn of customer information. With that Nintendo has gained valuable insights into market needs and preferences.
Customer led customization model
It comes with an underlying assumption how the agencies will dictate the future of telecommunication products. Though the growing bargaining power the shoppers, there is a transfer of paradigm as well as the companies must customize their model depending on individual customer preferences. The business follows charge of the customers in designing and promoting services designed to meet specific needs of the customers. Under this circumstance, the companies must identify the unique needs of the baby customers, then make an effort to develop services which satisfy those multifaceted needs.
With this particular model, the mass marketing can give way to the customized survey and also the survival of the companies is determined by the business’s capacity to meet customer’s demand by using an ongoing basis. In other words, customers will dictate the tos they plan to receive.
Developing multiple channels
The providers must develop multiple channels for sales and support to improve the client experience. Improving the footprint with the addition of on retail outlets is one of the options which the telecom providers have practiced since ages. Traditional channels like sales departments also have been in focus. With the rise in competition and economic slowdown, the operators are searching for economical approaches to serve their clients and keep the service quality intact. Eventually the service providers would like to move majority of its sales and services online from the web to achieve better economics. Apart from attaining an inexpensive solution by relocating to web channels, the operators can empower the customers to complete various activities in a less expensive price as opposed to retail channels.
On the internet channels, a customer is capable of doing numerous activities such as:
– Bill viewing and internet-based payment
– Online register of the complaint for support
– Altering price plan and subscriptions
– Viewing the item catalogue and buying products/services online
Beyond the previously listed activities, the operators may offer promotional services and cross-sell other products over the internet. The operators might have added revenue by ticker management on the websites and advertisements.
To provide the customers a regular and connected experience, the operators must integrate all the existing channels. Each time a customer walks-in to some shop, the buyer service representative will be able to retrieve his/her past interactions over-all the channels to offer him/her inside the best possible way.
The operator has to analyze/monitor what sort of customers start using these channels. Depending on the available data of customers’ using these channels, the operators can know the preferences of the people customers and mould their offering accordingly. With this the operators can build up customer experience by empowering them to perform activities and for that reason helping the service value to them.
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