Client Experience Operations - The Telecom Industry Ahead


The telecom providers usually have followed an increase trajectory previously decade through increase in subscriber base and also adding considerable numbers for their annual revenue. They have kept the interest rate with all the competitors and still have unquestionably game with great results before. But in the present times, these are facing by having an enormous challenge of adaptation on the matured, highly penetrated markets as well as global recessionary effect. Therefore, a transfer of paradigm to evolve their business models to the current scenario is highly required along with the need of the hour is the customer experience management to attain a greater retention ratio.

Challenge in modern telecom industry - Customer retention

Nowadays in this day telecom industry that has attained high penetration level, acquiring a customer is getting even costlier. Industry analysis claims that only 25% from the acquired customers keep with the business after an year's time and with an average only 20 -30% in the entire subscriber base is revenue earning/profitable customers. This dugs a deep hole from the balance sheet with the telecom agencies. Because of the churning aftereffect of the shoppers, you will find there's huge imbalance created 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 from the company if your customer churns ahead of the company can earn back the investment it incurred in establishing the buyer. Therefore, it is extremely necessary to indentify the profitable customers and retain them.

Retaining the profitable customers includes 2 steps:

  1. Identifying the revenue earning customers in 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 in the revenue earning customers, for example: the customers can use with usage more than ARPU are classified as high valued customers, or perhaps the event of pre-paid, customers recharging more than INR 250 per month (In Indian scenario) are believed as revenue earning. Depending on the business rules the complete customer base should 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. Accomplished by making use of various business analysis tools (eg: SAS, SPSS, Teradata, etc.).

    Customer experience management

    Following your identification of the valued/revenue earning customers, managing those identified group of customers are so very important.

    Emphasizing customers rather than products

    During the last years, the telecom providers have dedicated to introduction of latest products. They have originated new products/services and after that sought to discover or develop a industry for them. But increased competition one of many existing companies and lower barrier to entry for new players has led to the development in predatory activities from the telecom industry. Moreover, the cost of acquiring customers has increased considerably. Hence, nowadays in this times, you will find there's gradual transfer of focus from introduction of new products for acquiring clients to customers' experience management is observed. Currently, the Telco's must give full attention to retaining the existing valued customers and targeting more wallet share of each one customer by creating more value and improved customer experience.

    As an example: In the united kingdom, O2 has aligned its functional silos to have its existing customer's perspective to create product decisions and designing promotional offerings. They've devoted to retention by putting equal weight for renewals and acquisitions. With this the organization has reduced its churn figure to 50 % of its existing number.

    Nintendo has built an internet community for capturing customer insights while offering incentives in return of customer information. By this Nintendo has gained valuable insights into market needs and preferences.

    Customer led customization model

    There's an underlying assumption how the agencies will dictate the way forward for telecommunication services and products. But with the growing bargaining energy the shoppers, there is a shift in paradigm and also the agencies should customize their model according to individual customer preferences. Currently the business follows the lead in the customers in designing and promoting services intended to meet specific needs in the customers. Under this circumstance, the providers should find out the unique needs of the people customers, and then attempt to develop services which satisfy those multifaceted needs.

    Using this model, the mass marketing will offer approach to the customized market research as well as the survival from the service providers is dependent upon their ability to meet customer's demand on an ongoing basis. In other words, customers will dictate the service terms they mean to receive.

    Developing multiple channels

    The agencies must develop multiple channels for sales and support to enhance the consumer experience. Enhancing the footprint by adding on retail outlets is amongst the options that your telecom service providers have practiced since ages. Traditional channels like telemarketing companies also have been in focus. Together with the surge in competition and economic slowdown, the operators are seeking economical approaches to serve their customers and the service quality intact. Eventually the agencies would like to move most of its sales and services online with the web to realize better economics. Apart from attaining an inexpensive solution by moving to web channels, the operators can empower the shoppers to complete various activities with a less expensive price as opposed to retail channels.

    Over the internet channels, a customer is capable of doing a host of activities such as:

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

      In addition to the previously discussed activities, the operators can offer promotional services and cross-sell other products over the internet. The operators might have added revenue by ticker management on his or her websites and advertisements.

      To supply the customers can use a frequent and connected experience, the operators have to integrate all of the existing channels. Each time a customer walks-in with a retail store, the buyer service representative are able to retrieve his/her past interactions over all the channels for everyone him/her in the very best way.

      The operator needs to analyze/monitor how the customers utilize these channels. With regards to the available data of customers' using these channels, the operators can find out the preferences of the people customers and mould their offering accordingly. With this the operators can take shape up customer experience by empowering these phones perform activities and for that reason helping the service value to them.

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