Customer loyalty in telecom operators comarch

Customer loyalty in telecom operators

BU CRM & Marketing

Page 2 Kraków/ 09.08.2012


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



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



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



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



Increased use of over-the-top communication services

Source: the 2011 IBM Global Telecommunications Consumer Survey



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



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


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


Page 11 Kraków/ 09.08.2012


Most consumers do not engage with CSPs on services issues


Page 12 Kraków/ 09.08.2012


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


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


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


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


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


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


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


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


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


Comarch Loyalty Management - Majorities

Page 23 Kraków/ 09.08.2012


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


“Make me feel recognized and rewarded for being a loyal customer”


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 satisfaction is higher among participants of rewards compared to those who do not participate


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


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


Verifying the performance of marketing actions


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


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