white paper building customer loyalty in the telecom market

8/13/2019 White Paper Building Customer Loyalty in the Telecom Market

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Building Customer Loyalty

in the Telecom Market

White Paper

Comarch SAAl. Jana Pawa II 39 a

31-864 KrakowPolandphone: +48 12 64 61 000fax: +48 12 64 61 100e-mail: [email protected]

www.telecoms.comarch.com

www.comarch.com www.comarch.pl www.comarch.de www.comarch.frComarch Spka Akcyjna with its registered seat in Krakw at Aleja Jana Pawa II 39A, entered in t he National Court Register kept by theDistrict Court for Krakw-rdmiecie in Krakw, the 11th Commercial Division of the National Court Register under no. KRS 000057567.The share capital amounts to 8,051,637.00 z. The share capital was fully paid, NIP 677-00-65-406Copyright Comarch . All Rights Reserved.


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Building Customer Loyalty in the Telecom Market

How to embracing loyalty programs tounderstand the whole customer experience

How do companies decide who is a loyalcustomer?

What activities should loyalty technologiespromote?

What will you learn?What will you learn?


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The Basic Concept of Creating NewServices From Reusable Components

In the wireless industry, a new phone with a year contracthas been the definitive incentive program for years. Thetelecom industry, like others is plagued by churn; in fact themajority of new customers are churn customers. It is difficultto understand why most companies have not moved beyondthis weak approach. The consumer has to choose between ahuge amount of competitive products and services all offeringsimilar incentive packages. Brands need to move beyond thisantiquated method. Through the proper use of a pervasiveloyalty solution, telecoms can begin to provide a memorable

experience in order differentiate their product and attract andretain loyal consumers.

Currently the developed telecommarket must face low GDP growth,stagnating population and highservice-saturation levels.

The path of the past

In the past, telecom providers have dedicated tremendous energy

and resources to customer and company acquisition to developand grow their businesses; this was a successful businessmodel at the time. Currently the developed telecom marketmust face low GDP growth, stagnating population and highservice-saturation levels. Years of pursuing the same strategyby growing in numbers and acquiring new companies is no

longer a sustainable business model. The necessity to focus onunderstanding the customer experience has proved daunting asmost telecoms strategy and information is siloed in unique linesof business; fragmenting one customer into many different views.

Data, data and more data

As telecoms began pursuing growth through mergers andacquisitions, the consequences of such cannibalistic perusal led

them down a path to multiple disparate technologies. This hascaused customer data to be scattered across multiple customerdatabases, where data is often duplicated and inconsistent.

Typically, customer information is divided in data silos acrosslines of business with little integration or transparency amongstthem; resulting in a single facet of the overall customer profile.For example, the wireless division collects information butoften doesnt share it with the TV cable division. There is nocomplete view of a customer across different channels stores,websites, call centers. This means that a customer calling in tospeak with a representative may have a completely differentexperience depending on the department they speak with.They may receive different information, offers, or advice. As aresult, telecoms at any given moment have had a fragmentedand inconsistent view of an individual customer.

A unified view

Building an integrated customer data set is the first step towarddeveloping a more detailed and nuanced understanding of

Figure . Comarch Loyalty Management Solution Overview.


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customers. The technology and concepts to create a single,integrated view of the customer have been available for manyyears, but very few telecoms have adopted these methodseffectively. Most telecoms have a CRM system with a degree view of the customer; however due to data silosacross lines of business and inconsistent sales and marketingstrategies and actions and the customer view is not trulyintegrated. Airlines, retailers, hotels, and many other industrieshave already recognized the importance of integrating datafrom every customer interaction and are continuously workingto improve in the area.

Loyalty the next frontier

Building a loyal customer starts by creating the holistic customerprofile, but continues by embracing an innovative loyalty andincentive structure that encourages and rewards customers fortheir continuous business. How do companies decide who is aloyal customer? Typically telecoms focus on increasing ARPUor cutting churn. In fact 90% measure customer loyalty bychurn rates. This measurement is ineffectual because it is adetermination based upon the potential to churn or churnedcustomers. A loyalty solution allows for a more mature planwhere customer loyalty is determined by satisfaction,

retention and loyal activity resulting in the ultimate goal

of lowering churn and increasing ARPU. There are many

options for loyalty solutions points, discounts, rewards,

free services, upgrades, etc. The specific form of the rewardis not as important as providing relevant, attainable, and

economically valuable rewards or services to customers

based upon their unique behaviors. It creates an open dialogbetween the customer and the telecom by providing the

customer consistent and meaningful contacts through

marketing communications and loyalty promotional offers.

By implementing a loyalty solutiontelecoms can create a strategywhere the customer experienceand satisfaction is paramountensuring that their busy lifestylesare supported and enriched.

But what differentiates a loyalty program from traditional CRMis that a loyalty programs aim at proactively and continuouslyrewarding the customer for loyal behaviors and activity.

Currently, sixty-five percent of service providers only initiate aretention process when the customer has started the process ofleaving. Loyalty solutions take traditional data provided in CRM,Billing, and Order Management systems such as simple profileinformation and customer purchases and enrich it by a vastamount of customer experiential data gathered by reactionsto loyalty activity. The customer feels appreciated because thetelecom is able to offer specific and enticing loyalty promotions.And the telecom is able to use the customers preferences andbehaviors to hone their offers and target their customers moreeffectively. While CRM systems are able to track some customerbehaviors, loyalty systems are designed to further uniquelyincentivize and reward customers. Loyalty technologies should

promote the following activities: Using insights into customer behaviors, lifestyles, and

interests across all lines of business to deliver loyaltypromotions and other offers that increase loyalty andbreak the cycle of price comparison and deal-driven churn

Offer attainable and meaning rewards which willprovide the customer with additional value

Realizing the differences between customer segmentsand that varied loyalty promotions and rewards iscrucial to the customer experience. Every customerhas a different expectation of what is meaningful andvaluable to them. In general the higher the ARPU thelower interest in material benefits. These customersmay find more value in a benefit such as a customizedcustomer service experience. For customers with alower ARPU, direct and immediate benefits are morevaluable such as discounts, products from a rewardcatalog or additional minutes

Understanding what makes customers loyal andnurture that behavior in the non-loyal group throughimprovement of the program. The real ROI value of a

loyalty program is cloning more loyal customers fromthe overall customer population

Creating a personalized and specialized dialogwith the customer by improving targeted marketingand communications. A loyalty program shouldcommunicate both the benefits a customer receives bysimply being a member of the program, but should alsocommunicate unique and specific promotions whichmay engage customers in behavior which can earnthem additional rewards

Utilizing customer recognition tiers to identify andreward the most loyalty and profitable customersaccordingly. Investing in rewarding loyal and profitable


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Comarch Spka Akcyjna with its registered seat in Krakw at Aleja Jana Pawa II A, entered in the National Court Register kept by the District Courtfor Krakw-rdmiecie in Krakw, the th Commercial Division of the National Court Register under no. KRS . The share capital amountsto , , . z. The share capital was fully paid, NIP - - -

Copyright Comarch . All Rights Reserved. No part of this document may be reproduced in any form without the prior written consent ofComarch. Comarch reserves the right to revise this document and to make changes in the content from time to time without notice. Comarch maymake improvements and/or changes to the product(s) and/or programs described in this document any time. The trademarks and service marks ofComarch are the exclusive property of Comarch, and may not be used without permission. All other marks are the p roperty of their respective owners.

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Comarch is a global supplier of IT products and services for the telecommunication industry, thathas been present on the BSS/OSS market since . Comarch provides products in the areasof BSS, CRM, OSS as well as a range of comprehensive services, including end-toend BSS/OSStransformations. Comarchs differentiators lie not only in the compliance of its products withleading industry standards, but mainly in the flexibility of its solutions and approach and thehigh competences of its engineers. Through projects for almost telecom operators, Comarchhas gathered experience in the fields of designing, implementing, and integrating IT solutions.Customers include T-Mobile in Austria, KPN in the Netherlands, as well as E-Plus Gruppe, TelekomDeutschland, Vodafone and Telefnica O in Germany.

www.telecoms.comarch.com

WWW.COMARCH.COMWWW.COMARCH.PL

WWW.COMARCH.CO.UKWWW.COMARCH.DEWWW.COMARCH.FR

Comarch Headquarters Al. Jana Pawla II a

- KrakowPolandphone: + fax: + e-mail: [email protected]

Comarch Inc. W th Street

Chicago, IL United Statesphone: - - -fax: - - -e-mail: [email protected]

Comarch AGChemnitzer Str.

DresdenGermanyphone: + fax: + e-mail: [email protected]

Comarch UK LtdOne Kingdom StreetPaddington CentralLondon W BDphone: + ( ) fax: + ( ) e-mail: [email protected]

PolandBielsko-Biala, Wroclaw,Gdansk, Katowice, Krakow,Lodz, Lublin, Poznan, Warsaw

Austria Kirchbichl, WienBelgium BrusselsChina ShanghaiFinland EspooFrance Lille, Montbonnet-Saint Martin, ParisGermany Dresden,

Frankfurt/Main Dsseldorf MnchenPanama Panama CityRussia MoscowSwitzerland BuchsUAE Dubai

United Kingdom LondonUkraine Kiev, LvivUSA ChicagoVietnam Ho Chi Minh City
http://www.telecoms.comarch.com/http://www.telecoms.comarch.com/

white paper building customer loyalty in the telecom market

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