Consumer Experience Management - The Telecom Business Ahead
The telecom service providers have always followed an increase trajectory in the past decade through rise in client base along with adding considerable numbers with their annual revenue. They've got kept the speed with the competitors and still have totally game with great results previously. However in the present times, they may be facing with the enormous challenge of adaptation towards the matured, highly penetrated markets in conjunction with global recessionary effect. Therefore, a change in paradigm to evolve their business models to the scenario is highly required along with the necessity of the hour may be the customer experience management to accomplish an increased retention ratio.
Challenge in modern telecom industry - Customer retention
Nowadays in this day telecom industry which includes attained high penetration level, having a customer becomes even costlier. Industry analysis states that only 25% from the acquired customers keep with the company after an year's some time and while on an average only 20 -30% from the entire subscriber base is revenue earning/profitable customers. This dugs a deep hole from the balance sheet in the telecom service providers. Due to the churning aftereffect of the shoppers, there exists a huge imbalance made in gross additions from the customers and net addition.
Forward path: Strategy to customer retention - Customer experience management
Therefore, the most important challenge to the telecom operators all over the world is managing customer churn. It affects profitability from the company if a customer churns before the company can earn back a purchase it incurred in acquiring the customer. Therefore, it is extremely 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 subscriber base
2. Managing the customer experience and customer value for your revenue earning customers
Identifying the Revenue earning customers
The telecom providers should define their business logic for identification with the revenue earning customers, by way of example: the shoppers with usage over ARPU are classified as high valued customers, or in case of pre-paid, customers recharging a lot more than INR 250 a month (In Indian scenario) are viewed as revenue earning. With regards to the business rules your entire customer base 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 is often a challenge. This can be achieved by making use of various business analysis tools (eg: SAS, SPSS, Teradata, etc.).
Customer experience management
After the identification in the valued/revenue earning customers, managing those identified group of industry is most important.
Focusing on customers as opposed to products
Within the last years, the telecom service providers have dedicated to introduction of new products. They have got originated new products/services then sought to get or produce a marketplace for them. But increased competition one of the existing agencies and minimize barrier to entry for new players has resulted in the increase in predatory activities from the telecom industry. Moreover, the price tag on buying of new clients has increased considerably. Hence, nowadays in this 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 must concentrate on retaining the prevailing valued customers and targeting more wallet share of each customer by creating more value and improved customer experience.
As an example: In the united kingdom, O2 has aligned its functional silos to obtain its existing customer's perspective to create product decisions and designing promotional offerings. They've focused on retention by putting equal weight for renewals and acquisitions. By this the corporation has reduced its churn figure to 1 / 2 of its existing number.
Nintendo has generated an internet community for capturing customer insights while offering incentives in return of customer information. By this Nintendo has gained valuable insights into market needs and preferences.
Customer led customization model
It has an underlying assumption the service providers will dictate the future of telecommunication products. However with the growing bargaining strength of the customers can use, there's a shift in paradigm and also the service providers need to customize their model determined by individual customer preferences. Currently the business will observe the lead of the customers in designing and promoting services that will meet specific needs of the customers. Under this circumstance, the companies should get the unique needs of the people customers, and after that attempt to develop services which satisfy those multifaceted needs.
With this model, the mass marketing can give method to the customized survey and also the survival in the service providers depends on send out power to meet customer's demand by using an ongoing basis. In other words, customers will dictate the terms of service they want to receive.
Developing multiple channels
The agencies must develop multiple channels for sales and support to further improve the consumer experience. Improving the footprint by adding on stores is one of the options that this telecom companies have practiced since ages. Traditional channels like sales departments also have been in focus. With all the surge in competition and economic slowdown, the operators are searching for economical solutions to serve their clients whilst keeping the service quality intact. Eventually the providers would want to move most of its sales and services online from the web to realize better economics. Besides attaining an economical solution by relocating to web channels, the operators can empower the customers to execute various activities at a much cheaper price than the retail channels.
Online channels, a customer are capable of doing a number of activities like:
- Bill viewing and online payment
- Online register of a complaint for support
- Altering price plan and subscriptions
- Viewing the item catalogue and get products/services online
Besides the previously referred to activities, the operators can provide promotional services and cross-sell other products online. The operators might have added revenue by ticker management on their websites and advertisements.
To supply the customers a regular and connected experience, the operators should integrate every one of the existing channels. Every time a customer walks-in into a retail store, the client service representative will be able to retrieve his/her past interactions over all the channels to serve him/her in the most effective way.
The operator should analyze/monitor what sort of customers use these channels. With regards to the available data of customers' using these channels, the operators can know the preferences of the baby customers and mould their offering accordingly. From this the operators can build up customer experience by empowering the crooks to perform activities and therefore increasing the service value in their mind.
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