Tich Diem
Consumer Experience Management - The Telecom Market place Ahead
Abstract
The telecom providers have always followed a rise trajectory in the past decade through rise in customer base along with adding considerable numbers for their annual revenue. They've kept the pace with the competitors and still have played the game with amazing success during the past. But in the latest times, they may be facing with the enormous challenge of adaptation on the matured, highly penetrated markets along with global recessionary effect. Therefore, a transfer of paradigm to adapt their business models to the scenario is highly required as well as the necessity of the hour is the customer experience management to attain an increased retention ratio.
Challenge in modern telecom industry - Customer retention
In the modern day telecom industry which includes attained high penetration level, having a customer is getting even costlier. Industry analysis claims that only 25% of the acquired customers keep with the corporation after an year's some time and on an average only 20 -30% in the entire customer base is revenue earning/profitable customers. This dugs a deep hole in the balance sheet from the telecom companies. Due to the churning effect of the shoppers, you will find there's huge imbalance made in gross additions with the customers and net addition.
Forward path: Approach to customer retention - Customer experience management
Therefore, the main challenge for that telecom operators worldwide is managing customer churn. It affects profitability in the company in case a customer churns prior to the company can earn back it it incurred in establishing the client. Therefore, it is very essential to indentify the profitable customers and retain them.
Retaining the profitable customers includes 2 steps:
1. Identifying the revenue earning customers from the entire client base
2. Managing the customer experience and customer value for the revenue earning customers
Identifying the Revenue earning customers
The telecom companies must define their business logic for identification of the revenue earning customers, as an example: the customers with usage over ARPU are high valued customers, or in case of pre-paid, customers recharging greater than INR 250 each month (In Indian scenario) are considered as revenue earning. With respect to the business rules the 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 accomplished by making use of various business analysis tools (eg: SAS, SPSS, Teradata, etc.).
Customer experience management
Following the identification with the valued/revenue earning customers, managing those identified gang of clients are very important.
Emphasizing customers as opposed to products
In the last years, the telecom providers have concentrated on introduction of recent products. They have got originated new products/services and after that sought to discover or create a industry for them. But increased competition on the list of existing agencies and minimize barrier to entry for brand new players has ended in the development in predatory activities within the telecom industry. Moreover, the expense of purchase of customers has increased considerably. Hence, in the current times, there exists a gradual change in focus from introduction of the latest products for acquiring clients to customers' experience management is noted. Currently, the Telco's must pay attention to retaining the present valued customers and targeting more wallet share of each and every customer by creating more value and improved customer experience.
The telecom providers have always followed a rise trajectory in the past decade through rise in customer base along with adding considerable numbers for their annual revenue. They've kept the pace with the competitors and still have played the game with amazing success during the past. But in the latest times, they may be facing with the enormous challenge of adaptation on the matured, highly penetrated markets along with global recessionary effect. Therefore, a transfer of paradigm to adapt their business models to the scenario is highly required as well as the necessity of the hour is the customer experience management to attain an increased retention ratio.
Challenge in modern telecom industry - Customer retention
In the modern day telecom industry which includes attained high penetration level, having a customer is getting even costlier. Industry analysis claims that only 25% of the acquired customers keep with the corporation after an year's some time and on an average only 20 -30% in the entire customer base is revenue earning/profitable customers. This dugs a deep hole in the balance sheet from the telecom companies. Due to the churning effect of the shoppers, you will find there's huge imbalance made in gross additions with the customers and net addition.
Forward path: Approach to customer retention - Customer experience management
Therefore, the main challenge for that telecom operators worldwide is managing customer churn. It affects profitability in the company in case a customer churns prior to the company can earn back it it incurred in establishing the client. Therefore, it is very essential to indentify the profitable customers and retain them.
Retaining the profitable customers includes 2 steps:
1. Identifying the revenue earning customers from the entire client base
2. Managing the customer experience and customer value for the revenue earning customers
Identifying the Revenue earning customers
The telecom companies must define their business logic for identification of the revenue earning customers, as an example: the customers with usage over ARPU are high valued customers, or in case of pre-paid, customers recharging greater than INR 250 each month (In Indian scenario) are considered as revenue earning. With respect to the business rules the 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 accomplished by making use of various business analysis tools (eg: SAS, SPSS, Teradata, etc.).
Customer experience management
Following the identification with the valued/revenue earning customers, managing those identified gang of clients are very important.
Emphasizing customers as opposed to products
In the last years, the telecom providers have concentrated on introduction of recent products. They have got originated new products/services and after that sought to discover or create a industry for them. But increased competition on the list of existing agencies and minimize barrier to entry for brand new players has ended in the development in predatory activities within the telecom industry. Moreover, the expense of purchase of customers has increased considerably. Hence, in the current times, there exists a gradual change in focus from introduction of the latest products for acquiring clients to customers' experience management is noted. Currently, the Telco's must pay attention to retaining the present valued customers and targeting more wallet share of each and every customer by creating more value and improved customer experience.
For example: In the united kingdom, O2 has aligned its functional silos to acquire its existing customer's perspective to make product decisions and designing promotional offerings. They have devoted to retention by putting equal weight for renewals and acquisitions. With that the organization has reduced its churn figure to half of its existing number.
Nintendo has built a web based community for capturing customer insights while offering incentives in return of customer information. With that Nintendo has gained valuable insights into market needs and preferences.
Customer led customization model
It has an underlying assumption that the providers will dictate the way forward for telecommunication products. Though the growing bargaining power the customers, you will find there's transfer of paradigm and the companies need to customize their model based on individual customer preferences. Now the business will observe the lead from the customers in designing and promoting services meant to meet specific needs in the customers. Under this circumstance, the agencies must get the unique needs of the individual customers, then try and develop services which satisfy those multifaceted needs.
With this model, the mass marketing gives way to the customized researching the market along with the survival from the companies is dependent upon their capacity to meet customer's demand on an ongoing basis. Quite simply, customers will dictate the service terms they mean to receive.
Developing multiple channels
The agencies have to develop multiple channels for sales and support to boost the buyer experience. Improving the footprint by adding on stores is probably the options that the telecom companies have practiced since ages. Traditional channels like sales departments also ended up in focus. With the rise in competition and economic slowdown, the operators are looking for economical methods to serve their customers while keeping the service quality intact. Eventually the companies would want to move most of its sales and services online from the web to attain better economics. Besides attaining an economical solution by transferring to web channels, the operators can empower the customers to do various activities in a less costly price compared to retail channels.
On the internet channels, a client are capable of doing quite a few pursuits like:
- Bill viewing an internet-based payment
- Online register of a complaint for support
- Altering price plan and subscriptions
- Viewing the product catalogue and get products/services online
As well as the previously listed activities, the operators can provide promotional services and cross-sell other products on the internet. The operators will surely have added revenue by ticker management on their own websites and advertisements.
To supply the shoppers an even and connected experience, the operators have to integrate all of the existing channels. When a customer walks-in with a store, the consumer service representative will be able to retrieve his/her past interactions total the channels to offer him/her in the most effective way.
The operator needs to analyze/monitor how the customers use these channels. With regards to the available data of customers' usage of these channels, the operators can know the preferences of the person customers and mildew their offering accordingly. With this the operators can build up customer experience by empowering the crooks to perform activities and so improving the service value to them.
To read more about cach doi diem viettel resource: read more.
Nintendo has built a web based community for capturing customer insights while offering incentives in return of customer information. With that Nintendo has gained valuable insights into market needs and preferences.
Customer led customization model
It has an underlying assumption that the providers will dictate the way forward for telecommunication products. Though the growing bargaining power the customers, you will find there's transfer of paradigm and the companies need to customize their model based on individual customer preferences. Now the business will observe the lead from the customers in designing and promoting services meant to meet specific needs in the customers. Under this circumstance, the agencies must get the unique needs of the individual customers, then try and develop services which satisfy those multifaceted needs.
With this model, the mass marketing gives way to the customized researching the market along with the survival from the companies is dependent upon their capacity to meet customer's demand on an ongoing basis. Quite simply, customers will dictate the service terms they mean to receive.
Developing multiple channels
The agencies have to develop multiple channels for sales and support to boost the buyer experience. Improving the footprint by adding on stores is probably the options that the telecom companies have practiced since ages. Traditional channels like sales departments also ended up in focus. With the rise in competition and economic slowdown, the operators are looking for economical methods to serve their customers while keeping the service quality intact. Eventually the companies would want to move most of its sales and services online from the web to attain better economics. Besides attaining an economical solution by transferring to web channels, the operators can empower the customers to do various activities in a less costly price compared to retail channels.
On the internet channels, a client are capable of doing quite a few pursuits like:
- Bill viewing an internet-based payment
- Online register of a complaint for support
- Altering price plan and subscriptions
- Viewing the product catalogue and get products/services online
As well as the previously listed activities, the operators can provide promotional services and cross-sell other products on the internet. The operators will surely have added revenue by ticker management on their own websites and advertisements.
To supply the shoppers an even and connected experience, the operators have to integrate all of the existing channels. When a customer walks-in with a store, the consumer service representative will be able to retrieve his/her past interactions total the channels to offer him/her in the most effective way.
The operator needs to analyze/monitor how the customers use these channels. With regards to the available data of customers' usage of these channels, the operators can know the preferences of the person customers and mildew their offering accordingly. With this the operators can build up customer experience by empowering the crooks to perform activities and so improving the service value to them.
To read more about cach doi diem viettel resource: read more.
