Customer Experience Managing - The Telecom Sector Ahead
Abstract
The telecom service providers usually have followed a growth trajectory before decade through rise in customer base and also adding considerable numbers for their annual revenue. They've kept the pace using the competitors and also have played the game with amazing success previously. But in the present times, these are facing with an enormous challenge of adaptation to the matured, highly penetrated markets as well as global recessionary effect. Therefore, a shift in paradigm to adapt their business models to the present situation is highly required and the need for the hour may be the customer experience management to attain a higher retention ratio.
Challenge in modern telecom industry - Customer retention
In the modern day telecom industry which has attained high penetration level, having a customer gets even costlier. Industry analysis claims that only 25% of the acquired customers stick to the organization after an year's some time to with an average only 20 -30% from the entire client base is revenue earning/profitable customers. This dugs a deep hole from the balance sheet of the telecom providers. Because of the churning effect of the customers can use, there's a huge imbalance created in gross additions of the customers and net addition.
Forward path: Method to customer retention - Customer experience management
Therefore, the main challenge to the telecom operators around the globe is managing customer churn. It affects profitability with the company if your customer churns prior to company can earn back it it incurred in obtaining the customer. Therefore, it's very necessary to indentify the profitable customers and retain them.
Retaining the profitable customers includes 2 steps:
1. Identifying the revenue earning customers from your entire usage
2. Handling the customer experience and customer value for your revenue earning customers
Identifying the Revenue earning customers
The telecom providers need to define their business logic for identification of the revenue earning customers, by way of example: the customers can use with usage a lot more than ARPU these are known as high valued customers, or even in the event of pre-paid, customers recharging more than INR 250 monthly (In Indian scenario) are viewed as revenue earning. With respect to the business rules the entire customer 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 often a challenge. Accomplished by making use of various business analysis tools (eg: SAS, SPSS, Teradata, etc.).
Customer experience management
Following your identification with the valued/revenue earning customers, managing those identified group of clients are of utmost importance.
Emphasizing customers as an alternative to products
In the last years, the telecom service providers have focused on introduction of recent products. They have originated new products/services after which sought to get or build a industry for them. But increased competition on the list of existing providers minimizing barrier to entry for brand new players has triggered the expansion in predatory activities in the telecom industry. Moreover, the expense of acquiring customers has expanded considerably. Hence, in the current times, you will find there's gradual shift in focus from introduction of latest products for acquiring new customers to customers' experience management is noted. Currently, the Telco's should concentrate on retaining the existing valued customers and targeting more wallet share of every customer by making more value and improved customer experience.
For example: In UK, O2 has aligned its functional silos to have its existing customer's perspective for making product decisions and designing promotional offerings. They've got centered on retention by placing equal weight for renewals and acquisitions. From this the organization has reduced its churn figure to 1 / 2 of its existing number.
Nintendo has built a web based community for capturing customer insights and offers incentives in turn of customer information. With this Nintendo has gained valuable insights into market needs and preferences.
Customer led customization model
There is an underlying assumption that the providers will dictate not able to telecommunication services and products. But the growing bargaining power of the shoppers, there's a shift in paradigm along with the agencies must customize their model determined by individual customer preferences. The actual business will follow the lead in the customers in designing and promoting services intended to meet specific needs with the customers. Under this circumstance, the providers have to know the unique needs of the baby customers, after which attempt to develop services which satisfy those multifaceted needs.
Using this model, the mass marketing can give method to the customized researching the market and also the survival in the service providers depends on the business's ability to meet customer's demand with an ongoing basis. Put simply, 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 improve the customer experience. Enhancing the footprint with the addition of on retail stores is among the options that the telecom providers have practiced since ages. Traditional channels like telemarketer firms also ended up in focus. With all the boost in competition and economic slowdown, the operators are trying to find economical methods to serve their customers whilst keeping the service quality intact. Eventually the companies would want to move most of its sales and services online from the web to realize better economics. In addition to attaining an affordable solution by relocating to web channels, the operators can empower the shoppers to do various activities at a less costly price compared to the retail channels.
Online channels, a customer are able to do numerous activities like:
- Bill viewing and internet-based payment
- Online register of the complaint for support
- Altering price plan and subscriptions
- Viewing the merchandise catalogue and purchase products/services online
Besides the above mentioned activities, the operators may offer promotional services and cross-sell other products online. The operators might have added revenue by ticker management on his or her websites and advertisements.
To deliver the customers an even and connected experience, the operators should integrate each of the existing channels. When a customer walks-in with a shop, the client service representative can retrieve his/her past interactions over-all the channels for everyone him/her inside the most effective way.
The operator needs to analyze/monitor the way the customers begin using these channels. With regards to the available data of customers' use of these channels, the operators can get the preferences of the people customers and mould their offering accordingly. With that the operators can build up customer experience by empowering these phones perform activities and for that reason helping the service value for them.
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