Customer loyalty in telecom operators comarch
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Transcript of Customer loyalty in telecom operators comarch
Customer loyalty in telecom operators
BU CRM & Marketing
Page 2 Kraków/ 09.08.2012
Customer loyalty in telecom operators
AGENDA
1. Why loyalty is the top priority for telecom operators? Market & consumer trends
2. How does Comarch Loyalty Management respond to the current needs of telecom operators?
Why loyalty is the top priority for telecom operators? Market & consumer trends
Page 4 Kraków/ 09.08.2012
Customer loyalty in telecom operators
Telecom operators challenges
many operators offering similar services at
similar prices
customers don’t feel any loyalty to their
providers
more demanding customers expect higher
quality of services
very high rate of customer churn
no significant barriers to changing the operator
Page 5 Kraków/ 09.08.2012
Customer loyalty in telecom operators
Which topics are the most crucial for the success of telecom operators?
53,6%
55,4%
60,7%
0% 20% 40% 60% 80% 100%
Upgrading to 4G networks
Enhancing existingnetworks
Increasing customer loyalty
Critical
Interesting
Neutral
Not interesting
Source: Telecom World Congress Report April 2012
Page 6 Kraków/ 09.08.2012
Customer loyalty in telecom operators
What are the biggest challenges facing operators?
Falling revenue from core services
Increased competition
OTT and disruptive
players
Finding new revenue streams
Churn in the market
Meeting customer demand
Source: Telecom World Congress Report April 2012
Page 7 Kraków/ 09.08.2012
Customer loyalty in telecom operators
Increased use of over-the-top communication services
Source: the 2011 IBM Global Telecommunications Consumer Survey
Page 8 Kraków/ 09.08.2012
Customer loyalty in telecom operators
Customer churn – why do customers change operators?
The top 3 reasons why subscribers change providers:
They want a new handset
They believe they pay too much for calls
Providers do not offer additional loyalty benefits
Source: Research conducted by Analysys Mason and Buongiorno
Page 9 Kraków/ 09.08.2012
Customer loyalty in telecom operators
Who are the churn candidates?
Source: ₺The Connected Consumer Survey 2012” by Analysys Mason The research conducted in 5 European countries and in the US
Contract subscribers with higher ARPUs and higher activity
Consumers intention to change networks was about the same for both contract and prepaid subscribers (12 and 10%)
20% of contract subscribers wanted to stay but change the package they used
Page 10 Kraków/ 09.08.2012
Customer loyalty in telecom operators
Why are consumers dissatisfied with operators? services?
23% of consumers said that they often cannot make voice calls using their mobile phone
40% often cannot connect to the Internet through their mobile phone and, once connected, one in six consumers is frequently disconnected during the Internet session.
Around 25% of consumers indicate they have problems understanding their invoice or believe they don’t receive the service they are paying for
Source: the 2011 IBM Global Telecommunications Consumer Survey
Page 11 Kraków/ 09.08.2012
Customer loyalty in telecom operators
Most consumers do not engage with CSPs on services issues
Source: the 2011 IBM Global Telecommunications Consumer Survey
Page 12 Kraków/ 09.08.2012
Customer loyalty in telecom operators
The importance of consumers experiences sharing
of consumers tell their friends about poor experiences with their provider
77%
recommendations from family and friends is the second preferred source of information about products and services
of consumers said they avoid providers where their family and friends had a poor experience
81%
For 54% Source: the 2011 IBM Global Telecommunications
Consumer Survey
Page 13 Kraków/ 09.08.2012
Customer loyalty in telecom operators
Initiatives planned along the stages of the customer experience life cycle
Source: ₺Market Trends: New Customer Experience Initiatives of Leading CSPs, Worldwide, 2012” Gartner
Page 14 Kraków/ 09.08.2012
Customer loyalty in telecom operators
New customer experience initiatives of leading CSPs
Source: ₺Market Trends: New Customer Experience Initiatives of Leading CSPs, Worldwide, 2012” Gartner
Page 15 Kraków/ 09.08.2012
Customer loyalty in telecom operators
Loyalty programs across telecom operators – too little, too late
e.g. 60% in the Americas compared to 25% in Europe
have loyalty programs of some kind in place, although there are regional differences
82% 65% 90%
of services providers initiate a retention program only when customer starts the process of leaving
of CSPs said that customer loyalty programs would be ₺very important” or ₺important₺ to their company’s strategy over the next 5 years
of operators measure customer loyalty purely by churn rates
30%-40% of telco
operators
Source: The Loyalty Guide 5
Page 16 Kraków/ 09.08.2012
Customer loyalty in telecom operators
Loyalty programs across telecom operators – too little, too late
For 66% customers,
personalized and tailored services,
proactve care, and rewards are key
drivers to win their loyalty
For 89% of CSPs creating one integrated customer
profile is vital in supporting customer retention and loyalty
strategies
Only 21% of service providers have the necessary
collaboration between IT and
loyalty departments.
Source: The Loyalty Guide 5
How does Comarch Loyalty Management respond to the
current needs of telecom operators?
Page 18 Kraków/ 09.08.2012
Customer loyalty in telecom operators
It is about reaching the right goals…
1. How can we generate customer loyalty in a highly volatile and competitive market?
2. How can we keep customers satisfied to increase customer service experience?
3. Which products and services does price perception matter most to our Clients?
4. What are the right products and services to offer my Clients to increase ARPU?
The objectives you will achieve with customer loyalty
66% of consumers have changed telco providers over the past year, due to what they regard as poor customer service
Accenture Global Consumer Research 2011
In terms of loyalty marketing, a telco provider must act on three different levels:
1. Focus on keeping current customers loyalty
2. Increase usage of loyal customers through more value added services
3. Gain new users
Page 19 Kraków/ 09.08.2012
Customer loyalty in telecom operators
Order/Billing Data
Personal Data
Shopping Preferences
Marketing data
Migrated data
Product/RGUs data
Complaints
Identification of most
valuable subscribers
Marketing actions creation
& execution
Transaction processing
Coupons & Vouchers
Preferences & behavior
Promotions definition
Multi-channel
communication
Advanced segmentation
Event triggered messages
Targeted offers
ARPU/churn analysis
Fraud detection
Dashboards
Added-value benefits
Program KPI’s reporting
TRANSFORM/USE COLLECT DELIVER
INTUITIVE NAVIGATION
IT SUPPORT
Comarch Loyalty Management – key features
MODULAR ARCHITECTURE
SECURITY
HOSTING
ROLE BASE ACCESS IMPORT/EXPORT
STANDARD INTERFACES
Page 20 Kraków/ 09.08.2012
Customer loyalty in telecom operators
Comarch Loyalty Management – solution overview
File processor
Communication channels
Transaction processor
Report engine
Business Administration
Customer Web Portal
Contact Center
Business to Business
On-site Application
Mobile Application
E-mail SMS WWW
POS system
ERP&CRM system
Billing system
3rd party providers
Program partners
Comarch Loyalty Management
Message processor
Accounting system
BI & Data Warehouse
Call Center Point of Sale Mobile
Letter shop
Web system
Card manufacturer
E-shop
Direct mailing Social media
Page 21 Kraków/ 09.08.2012
Customer loyalty in telecom operators
CLM received the maximum score in the MJA Associates benchmarking
₺In summary, Comarch created a highly robust and future-proof solution that ranks amongst
the top 3 in the world. Comarch also offers its clients highly informed personnel, capable of working with every client, able to manage loyalty programmes with genuine commitment in order to ensure success.”
Mike Atkin Network
Page 22 Kraków/ 09.08.2012
Customer loyalty in telecom operators
Comarch Loyalty Management - Majorities
Page 23 Kraków/ 09.08.2012
Customer loyalty in telecom operators
Existing customers leave when they do not feel valued
Challenge CLM feature
Cost to acquire a customer/cost to retain each customer (customer service, etc.) Average amount each customer spends per defined period/ time with supplier Product and services purchased, how many RGU’s Profit from average customer based on promotion response rate Valuable info attributed to each customer (based on ARPU, dynamic and static data)
Leveraging the potential of information
Multidimensional segmentation of
customers
₺(… ) from the inside we see a mobile customer, a TV customer, an Internet customer, but sometimes they can all be the same person."
Martin Péronnet, Monaco Telecom CEO, from www.totaltele.com
Page 24 Kraków/ 09.08.2012
Customer loyalty in telecom operators
“Make me feel recognized and rewarded for being a loyal customer”
Challenge CLM feature
Unlimited configuration of promotions run at the same time & geo-location (CLM Mobile App) Automatic triggering of promotions Ability to run multiple loyalty schemes in parallel (for prepaid and postpaid or mixed) Ready-to-use promotion templates
Quick reaction to special marketing events
How to attractively offer range of products and
services?
Promo Designer
"We have got to look at what customers expect us to do and deliver it. We know if we use data effectively, give them the right products, services and added value, it will turn our
customers into fans. If we don't, we will lose them." J James Morgan, Head of CIC, Telefonica O2 UK, at Data Summit 2010
Page 25 Kraków/ 09.08.2012
Customer loyalty in telecom operators
Customer satisfaction is higher among participants of rewards compared to those who do not participate
Challenge CLM feature
Relevant & attainable benefits that engage all different customer profile types Rewards available to select segments of members based on a configurable parameter Cross-channel capability of points redemption ( online, store) Rewards that match customers anticipations and segment they are attached to
Customers are frustrated when a company delivers
something different to what they expected
Multiple rewards portfolio valueable for
customers
Customers are leaving program because they do not feel their value is recognized by brand
Page 26 Kraków/ 09.08.2012
Customer loyalty in telecom operators
Communication is an investment, not an expense Challenge CLM feature
Better Customer Service Experience: self-service loyalty actions, forums, chats, Unified and holistic view of customer information: right offer, right time, right medium Customer Satisfaction Surveys & Questionnaires Social media support to facilitate a two-way communication with customers
How to improve customer experience, insight to convert prospects into
customers and customers into brand advocates?
Tailored communication &
personalization
Messages sent to loyalty programme members have a 40% higher open rate, more than 20% higher click-through rates, almost 30% higher transaction rates, and more than 10%
higher sales revenue generated per message www.thewisemarketer.com
Page 27 Kraków/ 09.08.2012
Customer loyalty in telecom operators
Verifying the performance of marketing actions
Challenge CLM feature
Average ARPU per customer ($), redemption KPIs per channel, per product Report parametrization based on templates Prediction of potential participation in promotions Constant system control on each level - fraud prevention & detection, alerts, audit info
Track program health without causing
information overload
KPI’s reporting
Dynamic Dashboards
Communications service providers are beginning to recognize that the lack of an integrated view of their customer data is a major drawback and that they need to invest in data
management, business intelligence and analytics. Kris Szaniawski, Principal Analyst, Networks, Informa Telecoms & Media
Page 28 Kraków/ 09.08.2012
Customer loyalty in telecom operators
Investing in loyalty and customer experience has now become fundamental in protecting an operator’s customer base while securing continuous growth
Unlimited Configuration of Promotion Rules
• Best loyalty practices – How to establish and manage marketing strategy
• Ensured program attractiveness - How to engage customers & leverage operator data
Quick Reaction to Customer Needs
• Targeted audience – Who the program is designed for
• Tailored offers and communication – How to ensure a “win-win” scheme for all parties
Cost Optimization
• Report generation – How to measure company ROI and keep costs down when delivering a
sophisticated high-quality loyalty program
• Coordination of Sale - How to generate profits and increase ARPU
Business Advantages telco operators can achieve with Comarch Loyalty Management
THANK YOU
www.comarch.com