Consumer Experience Operations - The Telecom Market place AheadAbstract
The telecom providers usually have followed an increase trajectory during the past decade through surge in customer base as well as adding considerable numbers for their annual revenue. They have got kept the interest rate together with the competitors and still have totally game with great results before. In the recent times, they're facing with the enormous challenge of adaptation on the matured, highly penetrated markets in conjunction with global recessionary effect. Therefore, a transfer of 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 accomplish a higher retention ratio.
Challenge in modern telecom industry - Customer retention
In the modern day telecom industry containing attained high penetration level, obtaining a customer gets even costlier. Industry analysis states that only 25% in the acquired customers stay with the corporation after an year's serious amounts of while on an average only 20 -30% from the entire client base is revenue earning/profitable customers. This dugs a deep hole in the balance sheet in the telecom companies. Due to churning effect of absolutely free themes, there exists a huge imbalance made in gross additions with the customers and net addition.
Forward path: Approach to customer retention - Customer experience management
Therefore, the key challenge for that telecom operators worldwide is managing customer churn. It affects profitability of the company if your customer churns prior to company can earn back a purchase it incurred in acquiring the consumer. Therefore, it is extremely essential to indentify the profitable customers and retain them.
Retaining the profitable customers includes 2 steps:
1. Identifying the revenue earning customers in the entire customer base
2. Managing the customer experience and customer value for that revenue earning customers
Identifying the Revenue earning customers
The telecom providers must define their business logic for identification from the revenue earning customers, for instance: the customers can use with usage over ARPU these are known as high valued customers, or in case of pre-paid, customers recharging more than INR 250 monthly (In Indian scenario) are thought as revenue earning. With respect to the business rules the complete customer base needs 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 aid of various business analysis tools (eg: SAS, SPSS, Teradata, etc.).
Customer experience management
As soon as the identification in the valued/revenue earning customers, managing those identified number of industry is most important.
Centering on customers as an alternative to products
During the last years, the telecom agencies have dedicated to introduction of recent products. They have got originated new products/services and after that sought to find or develop a niche for them. But increased competition one of many existing providers minimizing barrier to entry for brand spanking new players has triggered the increase in predatory activities within the telecom industry. Moreover, the expense of buying of customers has risen considerably. Hence, in the modern times, there's a gradual shift in focus from introduction of latest products for acquiring new clients to customers' experience management is noted. Currently, the Telco's should focus on retaining the present valued customers and targeting more wallet share of each one customer by making 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 have devoted to retention by placing equal weight for renewals and acquisitions. From this the company has reduced its churn figure to half its existing number.
Nintendo has generated a web-based community for capturing customer insights and will be offering incentives inturn of customer information. From this Nintendo has gained valuable insights into market needs and preferences.
Customer led customization model
There's an underlying assumption that this companies will dictate not able to telecommunication products. But the growing bargaining power of absolutely free themes, there exists a transfer of paradigm and also the agencies should customize their model based on individual customer preferences. Currently the business follows the lead of the customers in designing and promoting services designed to meet specific needs in the customers. Under this circumstance, the agencies must identify the unique needs of the individual customers, and after that try to develop services which satisfy those multifaceted needs.
With this model, the mass marketing can give method to the customized general market trends and the survival with the companies is determined by the business's capacity to meet customer's demand while on an ongoing basis. In other words, customers will dictate the terms of service they mean to receive.
Developing multiple channels
The providers need to develop multiple channels for sales and support to boost the client experience. Improving the footprint by having on shops is probably the options that the telecom companies have practiced since ages. Traditional channels like telemarketer firms also have been in focus. Using the increase in competition and economic slowdown, the operators are seeking economical solutions to serve the clientele and keep the service quality intact. Eventually the agencies want to move most its sales and services online over the web to achieve better economics. In addition to attaining an inexpensive solution by relocating to web channels, the operators can empower the shoppers to do various activities with a much cheaper price compared to retail channels.
Online channels, an individual is capable of doing a number of pursuits like:
- Bill viewing and online payment
- Online register of your complaint for support
- Altering price plan and subscriptions
- Viewing the merchandise catalogue and buy products/services online
Beyond the previously listed activities, the operators can offer promotional services and cross-sell other products online. The operators will surely have added revenue by ticker management on his or her websites and advertisements.
To supply the shoppers a regular and connected experience, the operators have to integrate every one of the existing channels. Whenever a customer walks-in to some store, the customer service representative can retrieve his/her past interactions over everything the channels for everyone him/her in the best possible way.
The operator must analyze/monitor how the customers utilize these channels. Depending on the available data of customers' usage of these channels, the operators can get the preferences of the baby customers and mold their offering accordingly. From this the operators can build up customer experience by empowering these phones perform activities and therefore improving the service value in their mind.
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