Menu

The Love of Bagge 990

stickfinger9's blog

Client Experience Management - The Telecom Sector Ahead

Abstract

The telecom service providers usually have followed an increase trajectory in the past decade through boost in usage in addition to adding considerable numbers on their annual revenue. They've kept the speed with all the competitors and still have played the game with amazing success before. In the current times, they may be facing by having an enormous challenge of adaptation towards the matured, highly penetrated markets along with global recessionary effect. Therefore, a transfer of paradigm to evolve their business models for this situation is highly required and the need for the hour will be the customer experience management to achieve a greater retention ratio.

Challenge in modern telecom industry - Customer retention

In the current day telecom industry which has attained high penetration level, obtaining a customer gets even costlier. Industry analysis claims that only 25% from the acquired customers stick with the corporation after an year's some time and on an average only 20 -30% of the entire subscriber base is revenue earning/profitable customers. This dugs a deep hole inside the balance sheet with the telecom providers. Because of the churning effect of the customers can use, there exists a huge imbalance created in gross additions from the customers and net addition.

Forward path: Method to customer retention - Customer experience management

Therefore, the major challenge for the telecom operators worldwide is managing customer churn. It affects profitability from the company in case a customer churns ahead of the company can earn back it it incurred in establishing the client. Therefore, it's very critical 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 the revenue earning customers

Identifying the Revenue earning customers

The telecom agencies need to define their business logic for identification from the revenue earning customers, for instance: the customers with usage greater than ARPU are 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. Depending on the business rules your entire client 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



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

Emphasizing customers instead of products

Over the past years, the telecom providers have focused on introduction of recent products. They have originated new products/services and then sought to get or develop a niche for them. But increased competition on the list of existing companies and minimize barrier to entry for brand spanking new players has triggered the growth in predatory activities from the telecom industry. Moreover, the price tag on purchase of customers has risen considerably. Hence, in the modern times, there exists a gradual change in focus from introduction of recent products for acquiring new clients to customers' experience management is noted. Currently, the Telco's must pay attention to retaining the current valued customers and targeting more wallet share of each and every customer by making more value and improved customer experience.

As an example: In the united kingdom, O2 has aligned its functional silos to acquire its existing customer's perspective to create product decisions and designing promotional offerings. They have got centered on retention by putting equal weight for renewals and acquisitions. From this the corporation has reduced its churn figure to half of its existing number.

Nintendo has established an online community for capturing customer insights and offers incentives in return of customer information. With that Nintendo has gained valuable insights into market needs and preferences.

Customer led customization model

There is an underlying assumption how the service providers will dictate the future of telecommunication services and products. However with the growing bargaining strength of the customers, there exists a transfer of paradigm as well as the providers have to customize their model determined by individual customer preferences. The business will follow the lead in the customers in designing and promoting services designed to meet specific needs in the customers. Under this circumstance, the providers should know the unique needs of the people customers, after which attempt to develop services which satisfy those multifaceted needs.

Using this model, the mass marketing will offer strategy to the customized survey and the survival of the service providers will depend on send out capacity to meet customer's demand on an ongoing basis. Quite simply, customers will dictate the tos they plan to receive.

Developing multiple channels

The companies should develop multiple channels for sales and support to further improve the client experience. Increasing the footprint by adding on retail stores is among the options that your telecom service providers have practiced since ages. Traditional channels like call centers also was in focus. Together with the increase in competition and economic slowdown, the operators are trying to find economical methods to serve the clientele whilst keeping the service quality intact. Eventually the providers would want to move tastes its sales and services online through the web to achieve better economics. Apart from attaining a cost effective solution by transferring to web channels, the operators can empower the customers can use to execute various activities at a less costly price as opposed to retail channels.

Over the web channels, an individual can perform numerous activities like:

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

Beyond the above mentioned activities, the operators can provide promotional services and cross-sell other products over the web. The operators might have added revenue by ticker management on the websites and advertisements.

To offer the shoppers a frequent and connected experience, the operators must integrate every one of the existing channels. Each time a customer walks-in to a shop, the consumer service representative should be able to retrieve his/her past interactions over all the channels to serve him/her inside the most effective way.

The operator should analyze/monitor the way the customers use these channels. Depending on the available data of customers' usage of these channels, the operators can find out the preferences of the baby customers and mildew their offering accordingly. By this the operators can take shape up customer experience by empowering these phones perform activities and thus improving the service value in their mind.

For more info about tich diem go to this popular web site.

Go Back

Comment

Blog Search

Blog Archive

Comments

There are currently no blog comments.