Download our New White Paper and Learn How Telco Operators can Effectively Increase Retention and Boost Revenue
A small, negative change in churn rate as little as 1% can mean a difference in millions of dollars in profits
Churn is problematic to any company with a recurring billing model; profitability relies on receiving timely, recurring payments. However, churn presents a unique challenge to Telco companies. A delta in churn rate as little as 1% can mean a difference in millions of dollars to the bottom line. As the idea of the “un-carrier” gains steam in the mobile realm and providers offer increased incentives for customers to drop their contracts and switch, Telco companies must rely on unique tactics to protect their recurring credit card business and also implement best practices to boost customer retention.
Are billing declines costing you customers and hurting your bottom line?
Get our latest white paper, “Fighting Churn and Boosting Revenue for TELCO” and discover how to:
- Prevent Churn -Retain customers lost to recurring billing declines
- Recover Revenue -Boost current revenues
- Increase Lifetime Value -Enjoy increased customer loyalty and long term profits
What a successful Telco retention strategy looks like
After completing analysis of customers, satisfaction and behavior, implementing next steps is important. The following “best practices” can be a step in the right direction in terms of decreasing churn rates:
- IDENTIFY Once you’ve identified your most profitable customers, route them to a special “gold service” team created to serve this segment. Prioritizing resources to optimize the experience of your profit-driving customers is a relatively easy way to boost customer service and revenue.
- PERSONALIZE Greet returning visitors to your site. A simple “Welcome back, Sarah” can be a low-cost way to make customers feel special. All it takes is a cookie to retain visit history and you can let customers know you’re paying attention.
- CUSTOMIZE Aside from simply greeting returning customers, provide them with a customized web experience tailored to their interests. Using similar technology, you can display “features and products of interest” to returning customers who have shown interest in these items before. This increases relevancy to your customer’s wants as opposed to using your site as a billboard for what you want to sell.
- SOLVE PROBLEMS One of the reasons customer service is so important in Telco is because it is the front line when customers run into problems (service is down, service is spotty, I can’t get something I need). Tracking issues that each customer encounters and rapidly addressing them is essential. Communication here is key customers want to know that you understand the problem, what you are going to do to solve it and how quickly they can expect a solution.
- STAY IN TOUCH Outbound communications with the customer can make or break brand perception. Frequent – but not abusive – customer touches can keep customer up-to-date with relevant products and features and keep your company top-of-mind.
- REWARD Airlines reward frequent fliers with special benefits and service, so why shouldn’t Telco? As “high/advanced-use” customers increase, rewarding these customers is an opportunity to make them feel special and respected and decrease potential reasons to switch.