In the fast world of Mobile Operators, subscribers engage in a technological dance, moving seamlessly through a landscape that evolves with each technological leap. In this era of fast-paced communication, the choice to switch providers is as simple as making a call or clicking a few times on a website. The low barriers to exit demand a strategic focus on customer retention to ensure sustained success.
Just think about this case, personal mine but for sure, it will sound familiar to you. Your operator engages you with an offer, a quite good offer. In exchange, you must keep your subscription during a year. When the year passes, your invoice increase and you figure out “ohh, this year has passed over so quickly”. You call your operator asking for an offer you check on the website but, of course, this is only for newcomers, not for “old friends”, and you think why? You call to Customer Loyalty.. nop, there is no discounts we could offer you, sorry. You are happy with the service but the invoice is too expensive and you decide to move all your comms to another operator. Call to them, they offer a plan and start migration and voila! your “old” comms provider calls you to offer a great discount on your invoice if you keep your subscription with them. Sounds familiar?
Well, although the churn rate might decrease with this move from the “old guys”, you are not as happy as before, and might think, sorry…. too late and even get annoyed. If you are doing this today, why not yesterday? It is a disheartening experience that highlighted a critical gap in the customer-provider relationship: the lack of personalized attention and appreciation for long-term patrons.
Retain or Regret: The Profitable Pathway
Why is worth to put efforts in customer retention is quite visible with this example: imaging a bucket with holes in the bottom. As soon as you fill it with water, it gets out losing them. You need to keep filling the bucket to have some water in. If you stop filling, you end up with no water in the bucket.
The same applies to your customers, as long as you keep acquiring new ones but doing almost nothing to retain them. If you stop acquiring, you will end up with no customers and no profits. Take a view on the graphs below.
Source of pic: Retention is King, But Are You Tracking the Right Metric?
Venturing beyond the surface-level analysis of the overall growth curve, a comprehensive examination of data cohorts unveils a compelling narrative that juxtaposes the trajectories of two distinct companies, denoted as ‘A’ and ‘B.’ Company ‘A’ engages in a rapid acquisition of customers, an impressive numerical surge that, however, conceals a perilous reality – an equally swift attrition rate. This phenomenon unfolds into an unsustainable scenario, where the initial influx of customers is offset by an alarming churn rate. On the contrary, Company ‘B’ not only sustains but thrives with a commitment to stable customer retention. Their deliberate focus on keeping existing customers proves to be a linchpin in the sustainability of their business model, rendering their marketing efforts notably more cost-effective. This juxtaposition underscores a crucial lesson for players in the competitive landscape: “While acquisition may bolster numerical figures, it is the steadfast commitment to retention that forges enduring relationships and, consequently, fosters sustained profits.” This revelation beckons companies to reevaluate their strategic priorities, recognizing the profound impact that a robust retention strategy can have on the long-term viability and profitability of their operations.
Investing in customer retention unlocks a cascade of benefits, creating a stable foundation for success.
- Stable Revenue Stream: Providing financial stability by retaining existing customers.
- Cost Efficiency: Lowering customer acquisition costs and maximizing profitability.
- Customer Lifetime Value Increase: Amplifying revenue over the customer’s lifecycle.
- Word of Mouth and Referrals: Turning satisfied customers into brand advocates.
- Brand Loyalty: Cultivating a strong connection between customers and your brand.
- Reduced Marketing Costs: Minimizing the need for extensive new customer acquisition efforts.
- Feedback and Improvement: Garnering valuable insights for continual enhancement.
- Cross-Selling and Upselling Opportunities: Capitalizing on receptive existing customers.
- Competitive Advantage: Standing out in a competitive market through customer trust.
- Reduced Churn Costs: Saving resources associated with acquiring and onboarding new customers.
- Customer Advocacy: Transforming loyal customers into brand ambassadors.
- Data for Personalization: Leveraging long-term customer data for personalized experiences.
- Enhanced Customer Satisfaction: Fostering positive perceptions of the company and its offerings.
- Adaptation to Market Changes: Navigating industry shifts with a loyal customer base.
- Employee Morale: Boosting employee morale through positive impacts on customer relationships.
Strategies to increase Customer Satisfaction
In the digital age, customers crave an experience tailored to their needs. Beyond connectivity, it’s satisfaction that transforms customers into loyal advocates for your company.
Flexible and Customizable Plans
The strategic imperative of tailoring plans to individual needs transcends the conventional realm of offerings. Embracing the art of customization, your company commitment goes beyond, you endeavor to craft a bespoke mobile experience for each valued customer.
Picture this: A spectrum of plans, not just as options but as canvases waiting to be painted with the hues of personal preferences. This commitment to customization serves as a bulwark against the pervasive churn in the industry. By offering plans that resonate with the unique preferences of your customers, you create a bond that transcends the transactional nature of services. It’s not just about providing connectivity; it’s about tailoring an experience that harmonizes with each customer’s needs.
Recognize your customer’s needs evolve, and preferences shift. Therefore, flexible plans capable of adapting to the changing requirements of your customers is crucial. Whether it’s a need for additional data, an upgrade to a higher tier for enhanced features, or a temporary adjustment during travel, or even analyzing subscriber’s current plan to check whether they are infra-using them to offer a personalized plan that fits to their real usage with a suculent discount.
Yes, it might be hard to maintain a wide spectrum of plans, even, tailored to each customer needs but, what company do you want to be, the A or B?
Proactive Customer Support
It’s not just about addressing concerns, issues or doubts; it’s about anticipating needs, resolving issues before they escalate, and laying the foundation for unwavering trust and loyalty.
Imagine a support system that doesn’t merely react but anticipates, a team that is one step ahead in understanding subscriber concerns. Customer Support should be a strategic initiative designed to identify potential challenges before they become critical issues.
The proactive approach might begin with predictive analysis and continuous monitoring, leveraging cutting-edge technologies, like AI, and data analytics to foresee potential pain points, ensuring that mobile experience remains seamless. Picture this: your AI might be scanning all the data you gather from your subscribers looking for potential incidences to happen and call your subscribers with an AI-powered call center engaging with them in a natural chat that helps then in clarifying all their issues and concerns. Sounds great, doesn’t it?
Trust and loyalty are the cornerstones of enduring customer relationships, and proactive support reflects the commitment to building these foundations. By addressing concerns before they magnify, you demonstrate not only our technical prowess but also the understanding of your customer unique needs.
Loyalty Programs
Picture a realm where loyalty is not just acknowledged but celebrated, where your steadfast support becomes the key to unlocking a treasure trove of benefits.
Discounts Beyond Expectations: Discounts aren’t just a token gesture; they are a recognition of your customers loyalty. These discounts are the way of saying ’thank you’ for choosing you as your preferred mobile service provider. Just take a look at your Customer Lifetime Value to check that even with great discounts, it is still worthwhile for you balance.
Exclusive Access to Premium Features: Loyalty deserves to be rewarded with more than just discounts. Build programs that grant your customers with exclusive access to premium features and services that elevate their experience. From early access to cutting-edge features to priority customer support channels to free plan enhancements….
Beyond the conventional realm of loyalty, your programs should aim to create a sense of belonging, where each participant is not just a customer but an integral part of our community.
Regular Communication
The commitment to regular communication stands as a testament to fostering a profound sense of connection and unwavering loyalty for your subscribers. Beyond being a service provider, MVNOs recognize that meaningful engagement is the key to cultivating enduring relationships with valued customers. But you also should be careful not exceeding because excessive communication might be a double-edge sword.
Dynamic Information Flow: The commitment to regular communication is a dynamic process that transcends the static exchange of information. From the latest features to behind-the-scenes glimpses of innovations, communication endeavors to make customers an integral part of the story.
Transparent Updates: Transparency is the cornerstone of the communication strategy for operators. Through clear and transparent updates, operators ensure that customers are not just recipients of information but informed and empowered participants in the shared mobile journey.
Exclusive Promotions: Loyalty deserves recognition, and regular communication extends to sharing exclusive promotions tailored for cherished customers. Be it limited-time discounts, special bundles, or early access to upcoming offerings, communications are crafted to not only inform but to express gratitude for customers’ continued patronage.
Unleashing the Power of SMS
In a world saturated with digital noise, SMS remains a potent tool for direct and impactful communication. Its rarity enhances its value. Use SMS strategically over email or push messages from app for personalized offerings, network updates, or to gathering feedback.
Conclusion: Crafting MVNO Excellence in Customer Relations
In the competitive MVNO landscape, customer retention is not just a strategy; it’s a commitment to creating lasting and satisfied connections.
These strategies don’t just retain; they transform customers into brand advocates. Your role in crafting this future is pivotal, and these strategies are the roadmap to navigate it successfully helping you to increase your Customers Lifetime Value (CLTV).
Photo from Pexels by Karolina Grabowska