Client Experience Administration - The Telecom Business Ahead


The telecom service providers have always followed a growth trajectory in the past decade through boost in usage in addition to adding considerable numbers on their annual revenue. They've kept the pace with all the competitors and also have totally game with amazing success during the past. In the current 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 adapt their business models for this scenario is highly required along with the need for the hour could be the customer experience management to realize a better retention ratio.

Challenge in modern telecom industry - Customer retention

In the modern day telecom industry containing attained high penetration level, getting a customer gets even costlier. Industry analysis states that only 25% of the acquired customers stick with the business after an year's some time and on an average only 20 -30% with the entire usage is revenue earning/profitable customers. This dugs a deep hole inside the balance sheet of the telecom service providers. Because of the churning effect of the customers can use, there's 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 the telecom operators around the globe is managing customer churn. It affects profitability in the company if your customer churns before the company can earn back it it incurred in acquiring the customer. Therefore, it is very important to indentify the profitable customers and retain them.

Retaining the profitable customers includes 2 steps:

1. Identifying the revenue earning customers through the entire usage
2. Managing the customer experience and customer value to the revenue earning customers

Identifying the Revenue earning customers

The telecom providers must define their business logic for identification from the revenue earning customers, as an example: the customers with usage a lot more than ARPU are classified as high valued customers, or even in case of pre-paid, customers recharging greater than INR 250 monthly (In Indian scenario) are believed as revenue earning. Depending on the business rules the whole 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 a challenge. They can do this with the aid of various business analysis tools (eg: SAS, SPSS, Teradata, etc.).

Customer experience management


Following the identification of the valued/revenue earning customers, managing those identified group of industry is of utmost importance.

Concentrating on customers instead of products

Within the last years, the telecom service providers have targeting introduction of the latest products. They have originated new products/services then sought to find or develop a marketplace for them. But increased competition on the list of existing companies minimizing barrier to entry for first time players has triggered the increase in predatory activities from the telecom industry. Moreover, the price tag on buying of new clients has grown considerably. Hence, in the modern times, there is a gradual change in focus from introduction of latest products for acquiring clients to customers' experience management is noted. Currently, the Telco's have to give full attention to retaining the existing valued customers and targeting more wallet share of each and every customer by making more value and improved customer experience.

For instance: In the united kingdom, O2 has aligned its functional silos to obtain its existing customer's perspective in making product decisions and designing promotional offerings. They've centered on retention by placing equal weight for renewals and acquisitions. With this the business has reduced its churn figure to half its existing number.

Nintendo has produced an online community for capturing customer insights while offering incentives inturn of customer information. With that Nintendo has gained valuable insights into market needs and preferences.

Customer led customization model

There is an underlying assumption the agencies will dictate not able to telecommunication services and products. Though the growing bargaining energy the customers can use, there's a change in paradigm as well as the agencies should customize their model determined by individual customer preferences. The actual business will follow the lead from the customers in designing and promoting services that will meet specific needs with the customers. Under this circumstance, the companies need to get the unique needs of the individual customers, then try to develop services which satisfy those multifaceted needs.

With this particular model, the mass marketing will give method to the customized researching the market along with the survival in the service providers is determined by the company's ability to meet customer's demand by using an ongoing basis. In other words, customers will dictate the service terms they mean to receive.

Developing multiple channels

The providers should develop multiple channels for sales and support to boost the client experience. Helping the footprint with the addition of on retail outlets is probably the options that this telecom agencies have practiced since ages. Traditional channels like call centers also had been in focus. Together with the increase in competition and economic slowdown, the operators are looking for economical approaches to serve the clientele and keep the service quality intact. Eventually the agencies would want to move tastes its sales and services online with the web to attain better economics. Apart from attaining a cost effective solution by moving to web channels, the operators can empower the customers can use to execute various activities in a less costly price as opposed to retail channels.

Over the web channels, a person are capable of doing quite a few 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 buy products/services online

As well as the previously listed activities, the operators can provide promotional services and cross-sell other products over the internet. The operators might have added revenue by ticker management on the websites and advertisements.

To supply the shoppers a frequent and connected experience, the operators have to integrate every one of the existing channels. Whenever a customer walks-in to some retail outlet, the consumer service representative can retrieve his/her past interactions total the channels to provide him/her in the very best way.

The operator must analyze/monitor what sort of customers utilize these channels. With respect to the available data of customers' using of these channels, the operators can identify the preferences of the individual customers and mildew their offering accordingly. From this the operators can take shape up customer experience by empowering them to perform activities and therefore improving the service value for many years.

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