telecommunications service always follows the path of growth in the last ten years by increasing the customer base as well as adding a number to your annual income. They kept pace with the competition and played with amazing success in the past. But lately, they are faced with the enormous challenge of adapting outstanding, highly penetrated markets, combined with the global recession effect. Therefore, a paradigm shift in their business models to adapt to the current situation is very necessary and need of the hour is to manage the customer experience to achieve higher retention ratio.
The challenge in the modern telecommunications industry - customer retention
In the modern day telecom industry that has achieved a high level of penetration, customer acquisition gets even more expensive. Industry Analysis states that only 25% of acquired customers stay with the company after a year and an average of only 20 -30% of total customer revenue earning / profitable customers. This dugs deep hole in the balance of telecommunications services. Because of the churning effect of customers, there is an imbalance created by the gross and net customer additions that.
Forward path: The path to customer retention - customer experience management
So, the big challenge for telecom operators around the world manage customer churn. This affects the profitability of the company, if a customer churns before the company can earn back the investment it made in acquiring customers. Therefore, it is very critical to identify profitable customers and keep them.
Retaining profitable customers involves two steps:
1 Identifying income earning customers from all customers
Second Managing the customer experience and customer value for revenue-generating customers
Identifying revenue earning customer
of telecommunications services must define your business logic to identify the revenue earning customers, for example, customers using more than ARPU were classified as highly valued customers, or in the case of pre-paid, charging customers more than INR 250 a month (in Indian scenario) are considered as income earnings. Depending on the business rules of the entire customer base should be divided into earned income customers and non-revenue earning customers. Manage customer ARPU Average revenue per user. Manage customer information in a scale 40-50 million is a challenge. This can be achieved with the help of various tools of business analysis (eg SAS, SPSS, Teradata, etc. ).
Customer experience management
After identifying the value / revenue earning customers, managing those identified groups of customers are of paramount importance.
focus on customers instead of products
During the past year, telecommunications services are concentrated on the introduction of new products. They have created new products / services, and then tried to find or create a market for them. However, increased competition among existing providers and to lower barriers to entry of new players has resulted in a rise in predatory activity in the telecom industry. In addition, the cost of acquiring new customers has increased significantly. Thus, in modern times, there is a gradual shift in focus from the introduction of new products for the acquisition of new clients customer experience management is being observed. Currently Telco need to concentrate on maintaining the existing valued customers and targeting more wallet share of each customer by creating more value and better user experience.
For example: In the UK, O2 has aligned its functional silo to obtain their existing customer's perspective in making decisions and product design promotional offers. They were directed to keep asking the same weight for the renewal and acquisition. By this the company has reduced its losses to half the character of your existing code.
Nintendo has established an online community for capturing customer insights and offer incentives in exchange for customer information. By this Nintendo has gained valuable insights into market needs and desires.
The customer is guided adjustment of
There is an underlying assumption that service providers will dictate the future of telecommunications products and services. But with the growing bargaining power of buyers, there is a shift in paradigm, service providers must adapt their model based on individual customer preferences. Now, the business will follow the lead of the customers in the design and promotion services designed to meet specific customer needs. Under these circumstances, service providers need to identify the unique needs of individual customers, and then try to develop services that meet the multiple needs.
with this model, mass marketing will assign a custom market research services and survival will depend on the company's ability to meet customer demand on an ongoing basis. In other words, users will dictate the terms of service they intend to get.
Making multiple channels
providers should develop more channels for sales and support to enhance the customer experience. Increasing the footprint by adding to the stores is one of the options that telecommunications providers have practiced since ages. Traditional channels such as call centers were also in focus. With increasing competition and slowing economic growth, operators are looking for an economical way to serve their customers, while keeping intact the quality of service. At the end of the service provider would like to move most of its sales and service on-line via the web to achieve better economy. In addition to achieving cost-effective solution by moving to online channels, operators can enable customers to perform various activities at a much cheaper price than the retail channel.
via the web channel, customers can perform a variety of activities such as:
- Bill viewing and payment online
- Online registry of complaints for support
- Change price plan and subscriptions
- View product catalog and purchase products / services on-line
In addition to these activities, operators can offer promotional services and cross-sell other products through weba.Operatori can have added income management ticker on their websites and advertisements.
to provide clients with consistent and related experience, operators need to integrate all existing channels. When a customer walks in the trade, the customer service representative should be able to retrieve his / her past interactions across all channels to serve him / her in the best possible way.
operator to analyze / monitor how customers use these channels. Depending on the available data customers use these channels, operators can identify the preferences of individual customers and mold their offerings accordingly. According to the operators can build a customer experience empowering them to carry out activities and hence increase the value of services for them.
There are various ways of launching customer centric and value driven transformation. Operations may start with a high-visibility initiatives such as equi-balancing spending on customer retention and a greater emphasis to enhance the overall customer experience and customer empowerment. This transformation is the key to modern day telecommunication services to the race and excel in the future. Therefore Telco need to reorient their business and marketing model for managing the customer experience better and more efficient way