Customer Experience Managing - The Telecom Sector Ahead


The telecom providers usually have followed a growth trajectory during the past decade through increase in usage and also adding considerable numbers to their annual revenue. They have got kept the pace together with the competitors and possess totally game with great results previously. But also in the latest times, these are facing with an enormous challenge of adaptation for the matured, highly penetrated markets as well as global recessionary effect. Therefore, a transfer of paradigm to evolve their business models to the situation is highly required along with the need for the hour could 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 has attained high penetration level, acquiring a customer becomes even costlier. Industry analysis claims that only 25% with the acquired customers stick with the organization after an year's some time to while on an average only 20 -30% with the entire client base is revenue earning/profitable customers. This dugs an in-depth hole from the balance sheet from the telecom service providers. Due to the churning aftereffect of the shoppers, you will find there's huge imbalance made in gross additions of the customers and net addition.

Forward path: Way 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 a customer churns prior to company can earn back an investment it incurred in establishing 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 in the entire customer base
2. Managing the customer experience and customer value to the revenue earning customers

Identifying the Revenue earning customers

The telecom agencies must define their business logic for identification from the revenue earning customers, for instance: the customers with usage greater than ARPU are classified as high valued customers, or in the event of pre-paid, customers recharging more than INR 250 a month (In Indian scenario) are believed as revenue earning. With respect to the business rules the 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 a challenge. This can be accomplished by using various business analysis tools (eg: SAS, SPSS, Teradata, etc.).

Customer experience management


Following the identification with the valued/revenue earning customers, managing those identified band of company is so very important.

Centering on customers as an alternative to products

Within the last years, the telecom agencies have concentrated on introduction of the latest products. They've got originated new products/services after which sought to find or build a marketplace for them. But increased competition among the existing service providers reducing barrier to entry for brand new players has led to the increase in predatory activities inside the telecom industry. Moreover, the cost of purchase of customers has risen considerably. Hence, in the current times, there is a gradual change in focus from introduction of new products for acquiring clients to customers' experience management is observed. Currently, the Telco's have to concentrate on retaining the existing valued customers and targeting more wallet share of every customer by creating more value and improved customer experience.

By way of example: In UK, O2 has aligned its functional silos to acquire its existing customer's perspective to make product decisions and designing promotional offerings. They have focused on retention by putting equal weight for renewals and acquisitions. With this the company has reduced its churn figure to 1 / 2 of its existing number.

Nintendo has established an online community for capturing customer insights while offering incentives in exchange of customer information. From this Nintendo has gained valuable insights into market needs and preferences.

Customer led customization model

There's an underlying assumption the agencies will dictate the future of telecommunication products. But with the growing bargaining strength of absolutely free themes, you will find there's change in paradigm as well as the providers must customize their model based on individual customer preferences. Now the business follows charge of the customers in designing and promoting services meant to meet specific needs of the customers. Under this circumstance, the agencies should get the unique needs of the individual customers, and then make an effort to develop services which satisfy those multifaceted needs.

Using this type of model, the mass marketing will give method to the customized survey as well as the survival with the agencies is dependent upon their power to meet customer's demand while on an ongoing basis. Put simply, customers will dictate the terms of service they want to receive.

Developing multiple channels

The agencies need to develop multiple channels for sales and support to further improve the consumer experience. Helping the footprint by having on shops is probably the options which the telecom agencies have practiced since ages. Traditional channels like telemarketer firms also was in focus. With all the boost in competition and economic slowdown, the operators are searching for economical approaches to serve their clients and the service quality intact. Eventually the service providers would like to move tastes its sales and services online through the web to achieve better economics. Besides attaining an economical solution by relocating to web channels, the operators can empower absolutely free themes to complete various activities in a a lot less expensive price as opposed to retail channels.

Over the web channels, a customer are able to do numerous activities such as:

- Bill viewing an internet-based payment
- Online register of the complaint for support
- Altering price plan and subscriptions
- Viewing the item catalogue and buying products/services online

As well as the previously discussed activities, the operators may offer promotional services and cross-sell other products over the internet. The operators can have added revenue by ticker management on their own websites and advertisements.

To provide the shoppers a frequent and connected experience, the operators must integrate all of the existing channels. Each time a customer walks-in into a retail outlet, the consumer service representative are able to retrieve his/her past interactions over all the channels for everyone him/her within the best possible way.

The operator must analyze/monitor the way the customers begin using these channels. With respect to the available data of customers' use of these channels, the operators can identify the preferences of the people customers and mildew their offering accordingly. From this the operators can take shape up customer experience by empowering the crooks to perform activities and thus improving the service value for many years.

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