Customer loyalty in telecom operators comarch

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  • 1.Customer loyalty in telecom operatorsBU CRM & Marketing

2. Customer loyalty in telecom operatorsAGENDA1. Why loyalty is the top priority for telecom operators? Market & consumer trends2. How does Comarch Loyalty Management respond to the current needs of telecom operators? Krakw/ 09.08.2012 Page 2 3. Why loyalty is the top priorityfor telecom operators?Market & consumer trends 4. Customer loyalty in telecom operators Telecom operators challenges many operators offering very high rate of similar services at customer churn similar pricesno significant barriers to changing the operatormore demanding customers expect higher customers dont feel anyquality of services loyalty to their providers Krakw/ 09.08.2012Page 4 5. Customer loyalty in telecom operators Which topics are the most crucial for the success of telecom operators?Increasing customer loyalty60,7%Critical Enhancing existing 55,4%Interesting networksNeutralNot interestingUpgrading to 4G networks 53,6%0% 20% 40% 60% 80% 100% Source: Telecom World Congress Report April 2012 Krakw/ 09.08.2012 Page 5 6. Customer loyalty in telecom operatorsWhat are the biggest challenges facingoperators? Falling OTT andIncreasedrevenue fromdisruptive competitioncore servicesplayers Finding newMeeting Churn in the revenuecustomer market streams demand Source: Telecom World Congress Report April 2012 Krakw/ 09.08.2012Page 6 7. Customer loyalty in telecom operators Increased use of over-the-top communication services Source: the 2011 IBM Global Telecommunications Consumer Survey Krakw/ 09.08.2012 Page 7 8. Customer loyalty in telecom operators Customer churn why do customers change operators?The top 3 reasons why subscriberschange 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 Krakw/ 09.08.2012Page 8 9. Customer loyalty in telecom operatorsWho are the churn candidates? 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 tostay but change the package they usedSource: Connected Consumer Survey 2012 by Analysys Mason TheThe research conducted in 5 European countries and in the US Krakw/ 09.08.2012 Page 9 10. Customer loyalty in telecom operatorsWhy are consumers dissatisfied with operators?services?23%of consumers said that they often cannotmake voice calls using their mobile phone40%often cannot connect to the Internet through theirmobile phone and, once connected, one in sixconsumers is frequently disconnected during theInternet session.Around 25%of consumers indicate they have problemsunderstanding their invoice or believe they dontreceive the service they are paying forSource: the 2011 IBM Global Telecommunications Consumer Survey Krakw/ 09.08.2012 Page 10 11. Customer loyalty in telecom operatorsMost consumers do not engage with CSPs onservices issues Source: the 2011 IBM Global Telecommunications Consumer Survey Krakw/ 09.08.2012 Page 11 12. Customer loyalty in telecom operatorsThe importance of consumers experiences sharingof consumers tell their 77%friends about poorexperiences with theirproviderof consumers said theyavoid providers where 81%their family and friendshad a poor experiencerecommendations from familyFor and friends is the second54% preferred source of information Source: the 2011 IBM Global Telecommunicationsabout products and services Consumer Survey Krakw/ 09.08.2012 Page 12 13. Customer loyalty in telecom operatorsInitiatives planned along the stages of thecustomer experience life cycle Source: Market Trends: New Customer Experience Initiatives of Leading CSPs, Worldwide, 2012 Gartner Krakw/ 09.08.2012Page 13 14. 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 Krakw/ 09.08.2012Page 14 15. Customer loyalty in telecom operators Loyalty programs across telecom operators too little, too late have loyalty programs of30%-40%some kind in of telcoplace, although there areoperatorsregional differencese.g. 60% in the Americas compared to25% in Europe65%82%90% of services providers of CSPs said that customerof operators measure initiate a retentionloyalty programs would be customer loyalty purely program only when very important or by churn rates customer starts the importantto their companys process of leavingstrategy over the next 5 yearsSource:09.08.2012 Krakw/ The Loyalty Guide 5 Page 15 16. Customer loyalty in telecom operators Loyalty programs across telecom operators too little, too late For 66%For 89%Only 21%customers, personalizeof CSPs creating one of service providers d and tailored integrated customerhave the necessary services, proactve profile is vital incollaboration care, and rewards aresupporting customerbetween IT andkey drivers to win theirretention and loyalty loyalty departments. loyalty strategiesSource: The Loyalty Guide 5 Krakw/ 09.08.2012 Page 16 17. How does Comarch LoyaltyManagement respond to the current needs of telecomoperators? 18. Customer loyalty in telecom operators The objectives you will achieve with customerloyalty66% of consumers have changed telco providers over the past year, due towhat they regard as poor customer service Accenture Global Consumer Research 2011 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? In terms of loyalty marketing, a telco provider must act on three different levels:1. Focus on keeping current customers loyalty2. Increase usage of loyal customers through more value added services3. Gain new users Krakw/ 09.08.2012Page 18 19. Customer loyalty in telecom operators Comarch Loyalty Management key features COLLECTTRANSFORM/USEDELIVER Identification of most Order/Billing Datavaluable subscribers Advanced segmentation Personal Data Marketing actions creation Event triggered messages Shopping Preferences& execution Targeted offers Marketing data Transaction processing ARPU/churn analysis Migrated data Coupons & Vouchers Fraud detection Product/RGUs data Preferences & behavior Dashboards Complaints Promotions definition Added-value benefits Multi-channel Program KPIs reportingcommunicationSTANDARDMODULAR INTUITIVE HOSTING INTERFACES ARCHITECTURE NAVIGATIONIMPORT/EXPORTROLE BASE ACCESS SECURITYIT SUPPORT Krakw/ 09.08.2012 Page 19 20. Customer loyalty in telecom operators Comarch Loyalty Management solution overview POS ERP&CRM BillingAccounting Web BI & DataE-shop system systemsystemsystemsystem WarehouseComarch Loyalty Management ProgramTransactionMessage partnersFile processor Report engine processor processor3rd partyprovidersBusiness Customer Web Contact CenterAdministration PortalLetter shopBusiness toOn-siteMobile Business Application Application Card manufacturer Communication channels Point of Sale E-mail Direct mailing SMS WWW Call Center Social media Mobile Krakw/ 09.08.2012 Page 20 21. Customer loyalty in telecom operators CLM received the maximum score in the MJAAssociates benchmarking summary, Comarch created a highly robust Inand future-proof solution that ranks amongst Mike Atkin the top 3 in the world. Comarch also offers itsNetwork clients highly informed personnel, capable ofworking with every client, able to manage loyaltyprogrammes with genuine commitment in order toensure success. Krakw/ 09.08.2012 Page 21 22. Customer loyalty in telecom operators Comarch Loyalty Management - Majorities Krakw/ 09.08.2012Page 22 23. Customer loyalty in telecom operators Existing customers leave when they do not feel valuedChallengeCLM featureLeveraging theMultidimensional potential of segmentation of information 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 Pronnet, Monaco Telecom CEO, from www.totaltele.comCost to acquire a customer/cost to retain each customer (customer service, etc.)Average amount each customer spends per defined period/ time with supplierProduct and services purchased, how many RGUsProfit from average customer based on promotion response rateValuable info attributed to each customer (based on ARPU, dynamic and static data) Krakw/ 09.08.2012Page 23 24. Customer loyalty in telecom operatorsMake me feel recognized and rewarded for being a loyal customerChallengeCLM featureQuick reaction to special marketing eventsHow to attractively offerPromo Designer range of products and services?"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 ourcustomers into fans. If we dont, we will lose them."J James Morgan, Head of CIC, Telefonica O2 UK, at Data Summit 2010 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 Krakw/ 09.08.2012Page 24 25. Customer loyalty in telecom operators Customer satisfaction is higher among participants ofrewards compared to those who do not participateChallengeCLM feature Customers are frustratedMultiple rewardswhen a company delivers something different to what portfolio valueable forthey expectedcustomers Customers are leaving program because they do not feel their value is recognized by brandRelevant & attainable benefits that engage all differ