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Customer Experience Managing - The Telecom Business Ahead

Abstract

The telecom providers usually have followed an increase trajectory in the past decade through increase in subscriber base in addition to adding considerable numbers with their annual revenue. They've got kept the interest rate with the competitors and have totally game with amazing success during the past. But also in the current times, they are facing with the enormous challenge of adaptation towards the matured, highly penetrated markets along with global recessionary effect. Therefore, a transfer of paradigm to adapt their business models to the current scenario is highly required along with the need for the hour will be the customer experience management to attain a higher retention ratio.

Challenge in modern telecom industry - Customer retention

In the modern day telecom industry containing attained high penetration level, getting a customer gets even costlier. Industry analysis claims that only 25% in the acquired customers stick with the business after an year's time and with an average only 20 -30% in the entire client base is revenue earning/profitable customers. This dugs a deep hole within the balance sheet of the telecom agencies. Because of the churning aftereffect of the customers can use, there exists a huge imbalance created in gross additions in the customers and net addition.

Forward path: Method to customer retention - Customer experience management

Therefore, the most important challenge for the telecom operators all over the world is managing customer churn. It affects profitability from the company if your customer churns prior to company can earn back a purchase it incurred in acquiring the consumer. 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 subscriber base
2. Handling the customer experience and customer value for that 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 example: absolutely free themes with usage a lot more than ARPU these are known as high valued customers, or perhaps the event of pre-paid, customers recharging greater than INR 250 a month (In Indian scenario) are believed as revenue earning. With respect to the business rules the whole client 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 a challenge. They can do this by making use of various business analysis tools (eg: SAS, SPSS, Teradata, etc.).

Customer experience management



As soon as the identification of the valued/revenue earning customers, managing those identified group of customers are very important.

Emphasizing customers as an alternative to products

During the last years, the telecom companies have targeting introduction of latest products. They've originated new products/services and then sought to discover or create a industry for them. But increased competition one of many existing agencies and lower barrier to entry for brand new players has ended in the expansion in predatory activities from the telecom industry. Moreover, the price tag on buying of new clients has expanded considerably. Hence, in the modern times, you will find there's gradual change in focus from introduction of recent products for acquiring new customers 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 one customer by making more value and improved customer exp

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