Client Experience Management - The Telecom Industry Ahead

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The telecom providers usually have followed a growth trajectory previously decade through surge in customer base as well as adding considerable numbers for their annual revenue. They have kept the speed together with the competitors and still have literally game with great results during the past. However in the recent times, they're facing having an enormous challenge of adaptation to the matured, highly penetrated markets along with global recessionary effect. Therefore, a change in paradigm to adapt their business models to the current scenario is highly required as well as the need for the hour will be the customer experience management to achieve a higher retention ratio.

Challenge in modern telecom industry - Customer retention

Nowadays in this day telecom industry which includes attained high penetration level, having a customer is getting even costlier. Industry analysis claims that only 25% with the acquired customers stick with the business after an year's some time to on an average only 20 -30% from the entire usage is revenue earning/profitable customers. This dugs a deep hole within the balance sheet of the telecom companies. Due to churning aftereffect of the shoppers, you will find there's huge imbalance created in gross additions from the customers and net addition.

Forward path: Method to customer retention - Customer experience management

Therefore, the key challenge to the telecom operators worldwide is managing customer churn. It affects profitability in the company if your customer churns ahead of the company can earn back the investment it incurred in acquiring the client. Therefore, it is rather 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 to the revenue earning customers

Identifying the Revenue earning customers

The telecom agencies must define their business logic for identification from the revenue earning customers, for example: the shoppers with usage greater than ARPU are classified as high valued customers, or in the event of pre-paid, customers recharging greater than INR 250 monthly (In Indian scenario) are viewed as revenue earning. Based on the business rules the whole subscriber 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 is really a challenge. This can be achieved with the aid of various business analysis tools (eg: SAS, SPSS, Teradata, etc.).

Customer experience management


After the identification with the valued/revenue earning customers, managing those identified group of company is so very important.

Focusing on customers rather than products

During the last years, the telecom service providers have focused on introduction of latest products. They've got originated new products/services and then sought to discover or produce a marketplace for them. But increased competition on the list of existing providers and minimize barrier to entry for new players has ended in the increase in predatory activities within the telecom industry. Moreover, the price tag on acquiring clients has increased considerably. Hence, nowadays in this times, you will find there's gradual change in focus from introduction of new products for acquiring new clients to customers' experience management is noted. Currently, the Telco's need to give full attention to retaining the present valued customers and targeting more wallet share of each one customer by making more value and improved customer experience.

For instance: In UK, O2 has aligned its functional silos to obtain its existing customer's perspective to make product decisions and designing promotional offerings. They've devoted to retention by putting equal weight for renewals and acquisitions. From this the company has reduced its churn figure to half its existing number.

Nintendo has established a web-based community for capturing customer insights and offers 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 that this service providers will dictate the future of telecommunication products and services. However with the growing bargaining energy the customers, there's a transfer of paradigm and the providers have to customize their model based on individual customer preferences. The business will observe the lead in the customers in designing and promoting services designed to meet specific needs of the customers. Under this circumstance, the companies need to identify the unique needs of the person customers, after which try and develop services which satisfy those multifaceted needs.

With this model, the mass marketing will offer strategy to the customized survey as well as the survival with the service providers will depend on their capability to meet customer's demand while on an ongoing basis. Quite simply, customers will dictate the terms of use they mean to receive.

Developing multiple channels

The service providers should develop multiple channels for sales and support to enhance the consumer experience. Improving the footprint by adding on retail stores is probably the options that this telecom companies have practiced since ages. Traditional channels like sales departments also had been in focus. Using the rise in competition and economic slowdown, the operators are seeking economical solutions to serve the clientele whilst keeping the service quality intact. Eventually the agencies would want to move majority of its sales and services online from the web to attain better economics. Apart from attaining a cost effective solution by moving to web channels, the operators can empower the customers to do various activities at a less costly price compared to the retail channels.

On the internet channels, a customer can perform a host of activities such as:

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

In addition to the previously referred to activities, the operators can offer 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 absolutely free themes a regular and connected experience, the operators should integrate all the existing channels. Whenever a customer walks-in to some store, the customer service representative can retrieve his/her past interactions over-all the channels to serve him/her from the best possible way.

The operator needs to analyze/monitor what sort of customers start using these channels. Based on the available data of customers' using these channels, the operators can find out the preferences of the person customers and mould their offering accordingly. From this the operators can take shape up customer experience by empowering the crooks to perform activities and thus enhancing the service value in their mind.

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Created31 Jul 2019
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