Magic Numbers - Cordwell

8/6/2019 Magic Numbers - Cordwell

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Reducing Churn &

Increasing RetentionBrenda Cordwell

John Staurulakis, Inc.

Consultant – Communications, PR & Education



Sobering Facts

• In 2008, public ILECs lost 13.2 millionconnections, a 10% decline

• Revenue per connection continues to

fall for ILECs• Wireless connections are still growing,

but the growth is slowing

• Broadband connection growth is alsoslowing



158.5

10.2

149.7

11.1

142.0

11.7

128.4

11.8

115.6

11.8

104.0

11.2

94.1

10.3

85.7

9.4

78.4

8.6

72.1

7.9

66.7

7.3

62.0

6.8

58.0

6.4

54.5

6.0

-

20.0

40.0

60.0

80.0

100.0

120.0

140.0

160.0

180.0

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

TOTAL U.S. ACCESS LINES 2005 - 2018

U.S. ILEC Access Lines U.S. Facilities-based CLEC Access Lines

168.7

160.9

153.7

140.3

128.1

115.9

105.0

95.5

87.4

80.4

74.3

69.164.5

60.6

millions



0%

20%

40%

60%

80%

100%

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

RESIDENTIAL VOICE SERVICE MARKET SHARE: 2005 - 2018

Market Share: Access Lines Market Share: Cable Telephony Market Share: Wireless Only Market Share: Telco VoIP



Are youstruggling to

keep thebucket full?



Acquisition vs. Retention• Gaining new customers is more costly

than retaining your current ones

• Vonage spends about $300 to attract and

sign-up EACH new customer• Costs vary depending on the source –

some say you spend 5 times more to

acquire a customer than you do to keepone, others put the costs at 8-10x more



Tried & True Approaches• Excellent customer service

• Bundled services at reduced rates

• Stressing local community connection

• Sponsorships and community involvement• Education programs

• Service improvements• Marketing to current customers



“Tried & True” are not enoughwhen you compete with:

• Wireless

• VoIP

• Cable TV providers

• CLECs

• Online services (Google Voice, Hulu, etc.)



New Ideas for a Competitive World



Loyalty Programs

Team up with local businesses to offer yourcustomers discounts on the goods and

services they buy from local establishments.Issue discount cards or coupons to yourcurrent customers to say “thank you” for

shopping locally.



Emergency Line

Offer a landline at a very reduced price thatallows folks to call 911 in an emergency and

your office for service.*

* Be sure to check your state’s rules before doing this.



Contracts

Require customers to sign a 12- or 24-month contract when they sign up for a new

service or a bundle in order to lock in apromotional price. Include an early

termination fee.



Exclusive Benefits

Offer special services or benefits onlyavailable to your customers. Video

providers often offer local programming(sports, community-oriented shows) that

only appear on their systems.



Refer-a-Friend

Offer incentives to your current customers ifthey help you spread the word to their

friends and family about your products.



Flexible Pricing

Empower your customer service reps tooffer current customers special promotional

prices. This is especially important if youcan then lock that customer into a

long-term contract.



Research

You need to know why customers areleaving your network. At the very least, have

your CSRs ask why they are disconnecting.Collecting and using this information shouldhelp you keep the customers you still have.



Expand Your Scope

Bill stuffers are no longer good enough.Find every potential customer in your

service area and market to them. Keepinformation about those who have

disconnected. They may someday bepersuaded to return.



Social Media

Give your customers a way to expressthemselves in a non-confrontational way.

Listen to what they have to say, respond totheir questions/concerns, and take action

based on what you hear.



Questions?

Brenda Cordwell

John Staurulakis, Inc.

[email protected] | 301.459.7590 | www.jsitel.com

Magic Numbers - Cordwell

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