In past decade there has great revolution in the Telecom industry due to increase in customer base
. Hence resulting in additional numbers to their annual revenue. They have tried hard to keep pace with their competitors. Currently they are facing lot of challenges of adaptation in the matured coupled with extremely penetrated markets. Hence the need of an hour is adopt the business models that are required in the current situation. In such scenario customer experience management is very necessary to attain a higher retention ratio.
Customer experience management is the emerging issue all over the world. It is the combination of experiences that customers get before, during and after purchase. In simple language it means the delivery of the brand promise in the mind of customers. Due to the high penetration level acquiring new customers in Telecom sector is quite costly. According to the stats hardly 25% of the acquired customers remain with the company after one year. There are only 20-30% customers who contribute to the companys profit. This creates huge gap in the revenue sheet of the telecom service providers. There is higher churn rate in the Telecom sector. So the major challenge in front of them is to manage the customer churn. It not only affects the profitability of the company but also affect the brand reputation. It becomes very important to retain the customers who are profitable to your company. The 2 steps are there to retain profitable customers. Firstly identify the customers from the subscriber base who gives you more revenue. And secondly manage the customer experience which gives them add on value to them. For identifying the customers who are beneficial for company should be segmented. It varies according to the company. The customers are segmented on different basis like customers who have usage more than ARPU are classified as high value customers etc.
Now the next step is Customer Experience Management. Over the last few years Telecom Service Providers are focused on creating different products and finding the market for them. But due to the fierce competition has resulted in the growth in predatory activities in the telecom industry. And acquiring the new customers is also very costly process. So the Telecom operators need to focus on retaining the existing customers and delivering them enhanced customer experience.
The Telcos need to replace their existing business model and offer different marketing models to the customers in order to manage the enhanced customer experience in efficient manner.