Customer Experience Managing - The Telecom Sector Ahead
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Abstract
The telecom companies have always followed a growth trajectory during the past decade through rise in client base along with adding considerable numbers on their annual revenue. They have kept the interest rate with all the competitors and also have played the game with great results in the past. In the recent times, these are facing with an enormous challenge of adaptation on the matured, highly penetrated markets as well as global recessionary effect. Therefore, a shift in paradigm to evolve their business models to the present scenario is highly required and the need of 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 that has attained high penetration level, having a customer is becoming even costlier. Industry analysis claims that only 25% with the acquired customers stick to the business after an year's time and while on an average only 20 -30% from the entire customer base is revenue earning/profitable customers. This dugs a deep hole inside the balance sheet of the telecom companies. Due to the churning effect of the customers, there is a huge imbalance made in gross additions from the customers and net addition.
Forward path: Approach to customer retention - Customer experience management
Therefore, the main challenge for your telecom operators worldwide is managing customer churn. It affects profitability with the company if a customer churns prior to company can earn back it it incurred in getting the client. 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 customer base
2. Managing the customer experience and customer value for that revenue earning customers
Identifying the Revenue earning customers
The telecom service providers have to define their business logic for identification with the revenue earning customers, as an example: the shoppers with usage a lot more than ARPU are classified as high valued customers, or perhaps case of pre-paid, customers recharging more than INR 250 a month (In Indian scenario) are believed as revenue earning. With regards to the business rules the entire customer base needs 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 can be a challenge. They can do this with the help of various business analysis tools (eg: SAS, SPSS, Teradata, etc.).
Customer experience management
After the identification of the valued/revenue earning customers, managing those identified group of company is so very important.
Focusing on customers instead of products
Over the past years, the telecom agencies have targeting introduction of the latest products. They've originated new products/services and after that sought to discover or create a market for them. But increased competition one of many existing companies reducing barrier to entry for new players has resulted in the development in predatory activities inside the telecom industry. Moreover, the cost of purchase of clients has expanded considerably. Hence, in the modern times, there's a gradual shift in focus from introduction of the latest products for acquiring customers to customers' experience management is observed. Currently, the Telco's must give full attention to retaining the prevailing valued customers and targeting more wallet share of each one customer by creating more value and improved customer experience.
For instance: In the united kingdom, O2 has aligned its functional silos to have its existing customer's perspective for making product decisions and designing promotional offerings. They've centered on retention by putting equal weight for renewals and acquisitions. With this the company has reduced its churn figure to 50 % of its existing number.
Nintendo has produced 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
It has an underlying assumption that the service providers will dictate the way forward for telecommunication services and products. But with the growing bargaining power the customers can use, there exists a shift in paradigm along with the service providers have to customize their model depending on individual customer preferences. Now the business will observe charge from the customers in designing and promoting services meant to meet specific needs of the customers. Under this circumstance, the agencies have to get the unique needs of the people customers, and after that attempt to develop services which satisfy those multifaceted needs.
Using this type of model, the mass marketing will offer way to the customized general market trends as well as the survival of the service providers depends on the business's capacity to meet customer's demand on an ongoing basis. Quite simply, customers will dictate the terms of use they want to receive.
Developing multiple channels
The providers must develop multiple channels for sales and support to enhance the buyer experience. Increasing the footprint with the addition of on shops is probably the options that your telecom service providers have practiced since ages. Traditional channels like telemarketer firms also ended up in focus. Together with the increase in competition and economic slowdown, the operators are seeking economical methods to serve their clients while keeping the service quality intact. Eventually the service providers would like to move most its sales and services online with the web to realize better economics. Apart from attaining an economical solution by relocating to web channels, the operators can empower absolutely free themes to complete various activities at a less expensive price than the retail channels.
Over the internet channels, a customer are able to do quite a few pursuits like:
- Bill viewing and internet based payment
- Online register of the complaint for support
- Altering price plan and subscriptions
- Viewing the product catalogue and buy products/services online
Besides the previously discussed activities, the operators can provide promotional services and cross-sell other products on the internet. The operators may have added revenue by ticker management on the websites and advertisements.
To deliver the customers can use an even and connected experience, the operators must integrate all of the existing channels. Each time a customer walks-in to a store, the consumer service representative will be able to retrieve his/her past interactions over all the channels to provide him/her in the most effective way.
The operator needs to analyze/monitor what sort of customers start using these channels. Depending on the available data of customers' use of these channels, the operators can identify the preferences of the people customers and mould their offering accordingly. With this the operators can take shape up customer experience by empowering them to perform activities and so helping the service value in their mind.
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The telecom companies have always followed a growth trajectory during the past decade through rise in client base along with adding considerable numbers on their annual revenue. They have kept the interest rate with all the competitors and also have played the game with great results in the past. In the recent times, these are facing with an enormous challenge of adaptation on the matured, highly penetrated markets as well as global recessionary effect. Therefore, a shift in paradigm to evolve their business models to the present scenario is highly required and the need of 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 that has attained high penetration level, having a customer is becoming even costlier. Industry analysis claims that only 25% with the acquired customers stick to the business after an year's time and while on an average only 20 -30% from the entire customer base is revenue earning/profitable customers. This dugs a deep hole inside the balance sheet of the telecom companies. Due to the churning effect of the customers, there is a huge imbalance made in gross additions from the customers and net addition.
Forward path: Approach to customer retention - Customer experience management
Therefore, the main challenge for your telecom operators worldwide is managing customer churn. It affects profitability with the company if a customer churns prior to company can earn back it it incurred in getting the client. 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 customer base
2. Managing the customer experience and customer value for that revenue earning customers
Identifying the Revenue earning customers
The telecom service providers have to define their business logic for identification with the revenue earning customers, as an example: the shoppers with usage a lot more than ARPU are classified as high valued customers, or perhaps case of pre-paid, customers recharging more than INR 250 a month (In Indian scenario) are believed as revenue earning. With regards to the business rules the entire customer base needs 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 can be a challenge. They can do this with the help of various business analysis tools (eg: SAS, SPSS, Teradata, etc.).
Customer experience management
After the identification of the valued/revenue earning customers, managing those identified group of company is so very important.
Focusing on customers instead of products
Over the past years, the telecom agencies have targeting introduction of the latest products. They've originated new products/services and after that sought to discover or create a market for them. But increased competition one of many existing companies reducing barrier to entry for new players has resulted in the development in predatory activities inside the telecom industry. Moreover, the cost of purchase of clients has expanded considerably. Hence, in the modern times, there's a gradual shift in focus from introduction of the latest products for acquiring customers to customers' experience management is observed. Currently, the Telco's must give full attention to retaining the prevailing valued customers and targeting more wallet share of each one customer by creating more value and improved customer experience.
For instance: In the united kingdom, O2 has aligned its functional silos to have its existing customer's perspective for making product decisions and designing promotional offerings. They've centered on retention by putting equal weight for renewals and acquisitions. With this the company has reduced its churn figure to 50 % of its existing number.
Nintendo has produced 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
It has an underlying assumption that the service providers will dictate the way forward for telecommunication services and products. But with the growing bargaining power the customers can use, there exists a shift in paradigm along with the service providers have to customize their model depending on individual customer preferences. Now the business will observe charge from the customers in designing and promoting services meant to meet specific needs of the customers. Under this circumstance, the agencies have to get the unique needs of the people customers, and after that attempt to develop services which satisfy those multifaceted needs.
Using this type of model, the mass marketing will offer way to the customized general market trends as well as the survival of the service providers depends on the business's capacity to meet customer's demand on an ongoing basis. Quite simply, customers will dictate the terms of use they want to receive.
Developing multiple channels
The providers must develop multiple channels for sales and support to enhance the buyer experience. Increasing the footprint with the addition of on shops is probably the options that your telecom service providers have practiced since ages. Traditional channels like telemarketer firms also ended up in focus. Together with the increase in competition and economic slowdown, the operators are seeking economical methods to serve their clients while keeping the service quality intact. Eventually the service providers would like to move most its sales and services online with the web to realize better economics. Apart from attaining an economical solution by relocating to web channels, the operators can empower absolutely free themes to complete various activities at a less expensive price than the retail channels.
Over the internet channels, a customer are able to do quite a few pursuits like:
- Bill viewing and internet based payment
- Online register of the complaint for support
- Altering price plan and subscriptions
- Viewing the product catalogue and buy products/services online
Besides the previously discussed activities, the operators can provide promotional services and cross-sell other products on the internet. The operators may have added revenue by ticker management on the websites and advertisements.
To deliver the customers can use an even and connected experience, the operators must integrate all of the existing channels. Each time a customer walks-in to a store, the consumer service representative will be able to retrieve his/her past interactions over all the channels to provide him/her in the most effective way.
The operator needs to analyze/monitor what sort of customers start using these channels. Depending on the available data of customers' use of these channels, the operators can identify the preferences of the people customers and mould their offering accordingly. With this the operators can take shape up customer experience by empowering them to perform activities and so helping the service value in their mind.
To get more information about cach doi diem viettel please visit website: learn here.
