The telecom agencies have always followed a rise trajectory previously decade through increase in subscriber base and also adding considerable numbers for their annual revenue. They've got kept the speed together with the competitors and have played the game with great results previously. However in the recent times, they're facing with the enormous challenge of adaptation to the matured, highly penetrated markets coupled with global recessionary effect. Therefore, a change in paradigm to adapt their business models to the present scenario is highly required and also the need of the hour will be the customer experience management to realize a better retention ratio.
Challenge in modern telecom industry - Customer retention
Nowadays in this day telecom industry containing attained high penetration level, acquiring a customer becomes even costlier. Industry analysis states that only 25% of the acquired customers keep with the corporation after an year's some time and while on an average only 20 -30% from the entire client base is revenue earning/profitable customers. This dugs an in-depth hole within the balance sheet in the telecom companies. Due to the churning aftereffect of the shoppers, there is a huge imbalance created in gross additions with the customers and net addition.
Forward path: Strategy to customer retention - Customer experience management
Therefore, the most important challenge for your telecom operators around the globe is managing customer churn. It affects profitability of the company if your customer churns before the company can earn back an investment it incurred in obtaining the consumer. 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 the entire subscriber base
2. Managing the customer experience and customer value for the revenue earning customers
Identifying the Revenue earning customers
The telecom companies need to define their business logic for identification from the revenue earning customers, for instance: the customers with usage greater than ARPU are high valued customers, or even in the event of pre-paid, customers recharging over INR 250 monthly (In Indian scenario) are considered as revenue earning. With respect to the business rules your entire client base has 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 really a challenge. This can be accomplished with the help of various business analysis tools (eg: SAS, SPSS, Teradata, etc.).
Customer experience management
As soon as the identification from the valued/revenue earning customers, managing those identified gang of industry is so very important.
Emphasizing customers as opposed to products
During the last years, the telecom providers have focused on introduction of new products. They've got originated new products/services after which sought to get or develop a industry for them. But increased competition on the list of existing companies and lower barrier to entry for new players has ended in the development in predatory activities within the telecom industry. Moreover, the price of buying of new clients has risen considerably. Hence, in the current times, there exists a gradual transfer of focus from introduction of latest products for acquiring customers to customers' experience management is noted. Currently, the Telco's must focus on retaining the present valued customers and targeting more wallet share of every customer by creating more value and improved customer experience.
As an example: In the united kingdom, O2 has aligned its functional silos to acquire its existing customer's perspective to create product decisions and designing promotional offerings. They've got dedicated to retention by placing equal weight for renewals and acquisitions. From this the corporation has reduced its churn figure to 1 / 2 of its existing number.
Nintendo has produced a web based community for capturing customer insights and offers incentives in return of customer information. By this Nintendo has gained valuable insights into market needs and preferences.
Customer led customization model
There's an underlying assumption that this providers will dictate the way forward for telecommunication products. Though the growing bargaining power of the customers can use, there exists a shift in paradigm and also the agencies have to customize their model based on individual customer preferences. Currently the business will track charge from the customers in designing and promoting services that will meet specific needs in the customers. Under this circumstance, the providers need to know the unique needs of the person customers, then make an effort to develop services which satisfy those multifaceted needs.
Using this model, the mass marketing can give approach to the customized survey and also the survival from the agencies is determined by send out capacity to meet customer's demand while on 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. Increasing the footprint by having on retail stores is among the options that the telecom service providers have practiced since ages. Traditional channels like call centers also was in focus. With all the boost in competition and economic slowdown, the operators are trying to find economical solutions to serve the clientele while keeping the service quality intact. Eventually the providers would like to move most of its sales and services online from the web to achieve better economics. Apart from attaining an inexpensive solution by moving to web channels, the operators can empower absolutely free themes to perform various activities in a less costly price than the retail channels.
Over the web channels, a client are capable of doing quite a few activities like:
- Bill viewing and internet based payment
- Online register of an complaint for support
- Altering price plan and subscriptions
- Viewing the merchandise catalogue and get products/services online
As well as the previously referred to activities, the operators can offer promotional services and cross-sell other products over the web. The operators might have added revenue by ticker management on the websites and advertisements.
To deliver absolutely free themes a frequent and connected experience, the operators must integrate all of the existing channels. When a customer walks-in into a retail outlet, the customer service representative can retrieve his/her past interactions over all the channels for everyone him/her within the very best way.
The operator needs to analyze/monitor the way the customers start using these channels. Based on the available data of customers' usage of these channels, the operators can identify the preferences of the individual customers and mold their offering accordingly. With that the operators can take shape up customer experience by empowering these to perform activities and for that reason improving the service value for many years.
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