Customer churn is a major issue in the telecoms industry and leads to significant loss of revenue, blocking the growth of operators if not managed properly. It is a well known fact that it’s easier to retain an existing customer than to acquire a new one. For every customer loss, Telecoms operators end up paying twice: once by losing the future revenue of the customer, and then in the investment to acquire a new customer.
Image Source : express.co.uk
With the backdrop of slim margins and saturated markets, a negative customer interaction or loss of engagement with that customers leaves them only a few clicks away from switching to a competitor. So keeping customers engaged, satisfied and most importantly spending is a top priority for any telecoms brand.
According to the latest UK Satisfaction Index, Telecom is the second lowest performing industry and scored 74.3/100 in term of satisfaction among UK consumers. This low level of customer satisfaction leads to a high churn rate.
Image Source : ei.marketwatch.com
US operators face a similar challenge with churn. T-Mobile took the challenge to make improvements launching several initiatives designed to attract customers who are less likely to switch away. T-Mobile is all about giving more to its customers without asking more from them. A massive retail expansion, and creating a unique strategy to target its customer base with very relevant offers at the right time is key, along with better network coverage. They not only worked on prices but build a holistic customer experience matching the requirement of suburban families as well as larger enterprises.
The result has been a 0.95% postpaid phone churn rate, a new record low for the company. Below is a summary of that performance set against the previous year and how it compares to major competitors AT&T, Sprint, and Verizon.
Telecoms companies are deploying lots of way to reduce customer churn and boost their customer retention rates, reaching customers across multiple digital touchpoints like sales transactions, product interactions and service engagements. Each one of these touchpoints is an opportunity to provide a better experience, one that encourages average everyday customers to become brand advocates.
In an increasingly competitive landscape, marketers at telecoms companies must adopt a customer-centric approach rather than the traditional product-centric “philosophy”. This involves understanding customer requirements and preferences and delivering an outstanding customer experience at every touchpoint. That includes improving relevance for each customer, using 1 to 1 personalization to help improve breed retention. Success in today’s market will be driven by maximizing communication efficiencies while heeding customer preferences—addressing the right customers, at the right times, conveying the right messages, in the right ways.
See how Global Telecoms Brand Boosts Customer Loyalty with Personalized, Dynamic Email Content
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