To survive and even thrive , operators are shifting their attention from the bottom line to a much more rewarding customer centric approach to do business enabling them to reduce churn, acquire new customers and grow revenues.
A customer’s relationship with their mobile operator should begin even before they sign up to a mobile package. Throwing the kitchen sink at customers identified as a churn risk will only save a small proportion of the ‘at risk’ group. A well planned retention strategy delivering value throughout the lifecycle of the customer builds trust and loyalty which in turn will generate substantially lower churn rates.
A key aspect of a well-orchestrated retention strategy is the ability to produce offers and services, specifically tailored to the needs and values of customers, which create differentiation. While other industries such as airlines, hotels and retailers are embracing personalization and concentrating on delivering optimum customer experiences, mobile operators have been slower to embrace the concept although a few are certainly leading the way.
Some good examples include o2 UK who delivered additional value to their subscribers by partnering with Channel 4’s new mobile, all-in-one digital hub called All 4. This value added service gave o2 UK customer’s access to All 4 content 48 hours before it was available on other media.
Telus in Canada realised that many of their customers were fearful of racking up excessive bills when travelling abroad and created specific roaming tariffs including minutes, texts and data allowance allowing customers to continue to use their mobile phones when travelling abroad.
Australian operator Optus analysed the quantity of data being used by different age groups of their base and discovered that 18-20 years olds use 2.7 times more data than over 45 year olds. Using this information Optus created Family Share Plans allowing customers to pool their data to maximize their mobile plans.
Operators begin to understand their customer base by listening to them and by analysing their usage and behaviour. This information is essential when rolling out a customer centric approach to business. Mastering the ability to create tailored offers that resolve customer pain points will allow operators to deliver a truly differentiated service enabling them to remain competitive and profitable.
For more examples of how operators are delivering differentiated offers and services download our latest white paper Top 10 LTE Service Innovations.