2. Customer loyalty in telecom operators
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?
Kraków/ 09.08.2012 Page 2
3. Why loyalty is the top priority
for 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 prices
no significant barriers to
changing the operator
more demanding
customers expect higher customers don’t feel any
quality of services loyalty to their
providers
Kraków/ 09.08.2012 Page 4
5. Customer loyalty in telecom operators
Which topics are the most crucial for the success
of telecom operators?
Increasing customer loyalty 60,7%
Critical
Enhancing existing
55,4% Interesting
networks
Neutral
Not interesting
Upgrading to 4G networks 53,6%
0% 20% 40% 60% 80% 100%
Source: Telecom World Congress Report April 2012
Kraków/ 09.08.2012 Page 5
6. Customer loyalty in telecom operators
What are the biggest challenges facing
operators?
Falling OTT and
Increased
revenue from disruptive
competition
core services players
Finding new Meeting
Churn in the
revenue customer
market
streams demand
Source: Telecom World Congress Report April 2012
Kraków/ 09.08.2012 Page 6
7. Customer loyalty in telecom operators
Increased use of over-the-top communication
services
Source: the 2011 IBM Global Telecommunications Consumer Survey
Kraków/ 09.08.2012 Page 7
8. Customer loyalty in telecom operators
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
Kraków/ 09.08.2012 Page 8
9. Customer loyalty in telecom operators
Who 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 to
stay but change the package they used
Source: ₺ Connected Consumer Survey 2012” by Analysys Mason
The
The research conducted in 5 European countries and in the US
Kraków/ 09.08.2012 Page 9
10. Customer loyalty in telecom operators
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
Source: the 2011 IBM Global Telecommunications Consumer Survey
Kraków/ 09.08.2012 Page 10
11. Customer loyalty in telecom operators
Most consumers do not engage with CSPs on
services issues
Source: the 2011 IBM Global Telecommunications Consumer Survey
Kraków/ 09.08.2012 Page 11
12. Customer loyalty in telecom operators
The importance of consumers experiences sharing
of consumers tell their
77% friends about poor
experiences with their
provider
of consumers said they
avoid providers where
81% their family and friends
had a poor experience
recommendations from family
For and friends is the second
54% preferred source of information Source: the 2011 IBM Global Telecommunications
about products and services Consumer Survey
Kraków/ 09.08.2012 Page 12
13. Customer loyalty in telecom operators
Initiatives planned along the stages of the
customer experience life cycle
Source: ₺Market Trends: New Customer Experience Initiatives
of Leading CSPs, Worldwide, 2012” Gartner
Kraków/ 09.08.2012 Page 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
Kraków/ 09.08.2012 Page 14
15. Customer loyalty in telecom operators
Loyalty programs across telecom operators – too
little, too late
have loyalty programs of
30%-40% some kind in
of telco place, although there are
operators regional differences
e.g. 60% in the Americas compared to
25% in Europe
65% 82% 90%
of services providers of CSPs said that customer of operators measure
initiate a retention loyalty programs would be customer loyalty purely
program only when ₺very important” or by churn rates
customer starts the ₺important₺to their company’s
process of leaving strategy over the next 5 years
Source:09.08.2012
Kraków/ 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, personalize of CSPs creating one of service providers
d and tailored integrated customer have the necessary
services, proactve profile is vital in collaboration
care, and rewards are supporting customer between IT and
key drivers to win their retention and loyalty loyalty departments.
loyalty strategies
Source: The Loyalty Guide 5
Kraków/ 09.08.2012 Page 16
17. How does Comarch Loyalty
Management respond to the
current needs of telecom
operators?
18. Customer loyalty in telecom operators
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
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 loyalty
2. Increase usage of loyal customers through more value added services
3. Gain new users
Kraków/ 09.08.2012 Page 18
19. Customer loyalty in telecom operators
Comarch Loyalty Management – key features
COLLECT TRANSFORM/USE DELIVER
Identification of most
Order/Billing Data
valuable 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 KPI’s reporting
communication
STANDARD MODULAR INTUITIVE
HOSTING
INTERFACES ARCHITECTURE NAVIGATION
IMPORT/EXPORT ROLE BASE ACCESS SECURITY IT SUPPORT
Kraków/ 09.08.2012 Page 19
20. Customer loyalty in telecom operators
Comarch Loyalty Management – solution overview
POS ERP&CRM Billing Accounting Web BI & Data
E-shop
system system system system system Warehouse
Comarch Loyalty Management
Program
Transaction Message partners
File processor Report engine
processor processor
3rd party
providers
Business Customer Web
Contact Center
Administration Portal
Letter shop
Business to On-site Mobile
Business Application Application Card
manufacturer
Communication channels
Point of Sale E-mail Direct mailing SMS WWW Call Center Social media Mobile
Kraków/ 09.08.2012 Page 20
21. Customer loyalty in telecom operators
CLM received the maximum score in the MJA
Associates benchmarking
₺ summary, Comarch created a highly robust
In
and future-proof solution that ranks amongst
Mike Atkin the top 3 in the world. Comarch also offers its
Network clients highly informed personnel, capable of
working with every client, able to manage loyalty
programmes with genuine commitment in order to
ensure success.”
Kraków/ 09.08.2012 Page 21
23. Customer loyalty in telecom operators
Existing customers leave when they do not feel
valued
Challenge CLM feature
Leveraging the Multidimensional
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 Péronnet, Monaco Telecom CEO, from www.totaltele.com
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)
Kraków/ 09.08.2012 Page 23
24. Customer loyalty in telecom operators
“Make me feel recognized and rewarded for being a
loyal customer”
Challenge CLM feature
Quick reaction to special
marketing events
How to attractively offer Promo 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 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
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
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25. Customer loyalty in telecom operators
Customer satisfaction is higher among participants of
rewards compared to those who do not participate
Challenge CLM feature
Customers are frustrated Multiple rewards
when a company delivers
something different to what portfolio valueable for
they expected customers
Customers are leaving program because they do not feel their value is recognized by brand
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
Kraków/ 09.08.2012 Page 25
26. Customer loyalty in telecom operators
Communication is an investment, not an expense
Challenge CLM feature
How to improve customer
experience, insight to Tailored
convert prospects into communication &
customers and customers
into brand advocates?
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
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
Kraków/ 09.08.2012 Page 26
27. Customer loyalty in telecom operators
Verifying the performance of marketing actions
Challenge CLM feature
Track program health KPI’s reporting
without causing
information overload 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
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
Kraków/ 09.08.2012 Page 27
28. Customer loyalty in telecom operators
Business Advantages telco operators can achieve
with Comarch Loyalty Management
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
Kraków/ 09.08.2012 Page 28