Customer loyalty in telecom operators comarch

Customer loyalty in telecom
operators
BU CRM & Marketing

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

Why loyalty is the top priority
for telecom operators?
Market & consumer trends


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



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


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



Increased use of over-the-top communication
services

Source: the 2011 IBM Global Telecommunications Consumer Survey


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



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


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

Kraków/ 09.08.2012 Page 10


Most consumers do not engage with CSPs on
services issues


Kraków/ 09.08.2012 Page 11


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


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


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


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


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

How does Comarch Loyalty
Management respond to the
current needs of 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


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


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


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


Comarch Loyalty Management - Majorities

Kraków/ 09.08.2012 Page 22


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


“Make me feel recognized and rewarded for being a
loyal customer”
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
Kraków/ 09.08.2012 Page 24


Customer satisfaction is higher among participants of
rewards compared to those who do not participate


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


Communication is an investment, not an expense

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


Verifying the performance of marketing actions

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


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

Customer loyalty in telecom operators comarch

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