The telecom providers usually have followed an improvement trajectory during the past decade through increase in client base along with adding considerable numbers to their annual revenue. They've kept the pace using the competitors and also have played the game with great results in the past. But also in the present times, they're facing having an enormous challenge of adaptation towards the matured, highly penetrated markets as well as global recessionary effect. Therefore, a shift in paradigm to evolve their business models to the current scenario is highly required along with the need of the hour could be the customer experience management to realize a greater retention ratio.

Challenge in modern telecom industry - Customer retention

In the modern day telecom industry containing attained high penetration level, getting a customer becomes even costlier. Industry analysis states that only 25% of the acquired customers keep with the business after an year's some time to on an average only 20 -30% of the entire subscriber base is revenue earning/profitable customers. This dugs a deep hole inside the balance sheet of the telecom agencies. Due to the churning aftereffect of the customers, you will find there's huge imbalance made in gross additions with the customers and net addition.

Forward path: Way to customer retention - Customer experience management

Therefore, the major challenge to the telecom operators around the world is managing customer churn. It affects profitability in the company in case a customer churns prior to company can earn back a purchase it incurred in acquiring the buyer. Therefore, it is rather important to indentify the profitable customers and retain them.

Retaining the profitable customers includes 2 steps:

1. Identifying the revenue earning customers from your entire client base
2. Handling the customer experience and customer value for that revenue earning customers

Identifying the Revenue earning customers

The telecom agencies have to define their business logic for identification with the revenue earning customers, as an example: the customers with usage greater than ARPU are called high valued customers, or perhaps the event of pre-paid, customers recharging a lot more than INR 250 a month (In Indian scenario) are considered as revenue earning. Depending on the business rules your entire usage must 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 can be a challenge. This can be achieved by making use of various business analysis tools (eg: SAS, SPSS, Teradata, etc.).

Customer experience management

Following your identification from the valued/revenue earning customers, managing those identified group of customers are so very important.

Emphasizing customers rather than products

Over the past years, the telecom service providers have targeting introduction of recent products. They've originated new products/services and after that sought to discover or build a marketplace for them. But increased competition on the list of existing service providers and lower barrier to entry for brand spanking new players has ended in the growth in predatory activities from the telecom industry. Moreover, the price tag on buying of customers has increased considerably. Hence, in the modern times, there's a gradual shift in focus from introduction of recent products for acquiring new customers to customers' experience management is noted. Currently, the Telco's should give full attention to retaining the present valued customers and targeting more wallet share of each customer by making more value and improved customer experience.

As an example: In UK, O2 has aligned its functional silos to obtain its existing customer's perspective in making product decisions and designing promotional offerings. They've got centered on retention by putting equal weight for renewals and acquisitions. With that the business has reduced its churn figure to half its existing number.

Nintendo has produced an online community for capturing customer insights and will be offering incentives in turn of customer information. With that Nintendo has gained valuable insights into market needs and preferences.

Customer led customization model

There's an underlying assumption how the companies will dictate the way forward for telecommunication products and services. But the growing bargaining energy absolutely free themes, there's a change in paradigm and the agencies must customize their model according to individual customer preferences. The business will observe the lead in the customers in designing and promoting services designed to meet specific needs in the customers. Under this circumstance, the providers should know the unique needs of the individual customers, then try and develop services which satisfy those multifaceted needs.

Using this model, the mass marketing gives method to the customized researching the market and the survival with the service providers depends on their capacity to meet customer's demand on an ongoing basis. In other words, customers will dictate the service terms they plan to receive.

Developing multiple channels

The providers should develop multiple channels for sales and support to improve the consumer experience. Improving the footprint with the help of on shops is probably the options which the telecom service providers have practiced since ages. Traditional channels like telemarketer firms also had been in focus. With the increase in competition and economic slowdown, the operators are seeking economical ways to serve their potential customers whilst keeping the service quality intact. Eventually the companies want to move most its sales and services online over the web to accomplish better economics. Besides attaining an inexpensive solution by relocating to web channels, the operators can empower the shoppers to do various activities with a less costly price compared to the retail channels.

Over the internet channels, a client can perform numerous activities like:

- Bill viewing and online payment
- Online register of a complaint for support
- Altering price plan and subscriptions
- Viewing the item catalogue and purchase products/services online

Beyond the previously referred to activities, the operators may offer promotional services and cross-sell other products over the web. The operators will surely have added revenue by ticker management on their websites and advertisements.

To deliver absolutely free themes a regular and connected experience, the operators need to integrate each of the existing channels. Every time a customer walks-in to some retail store, the client service representative will be able to retrieve his/her past interactions over-all the channels to offer him/her within the best possible way.

The operator needs to analyze/monitor what sort of customers start using these channels. With respect to the available data of customers' use of these channels, the operators can get the preferences of the baby customers and mould their offering accordingly. From this the operators can take shape up customer experience by empowering these phones perform activities and so enhancing the service value in their mind.

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