As it becomes easier for customers to switch phones, mobile and broadband providers, mobile network providers (MNOs) and telecom providers face mounting pressure on prices and margins. They must therefore look for new ways to boost customer loyalty and increase profits: namely, by improving customer experience (CX).
This blog looks at how the telecoms industry can enhance CX to help attract and retain customers.
Improving CX boosts revenue and ARPU
Enhancing customer service and CX can have a dramatic impact on profitability, particularly in the highly competitive telecoms market.
Forrester estimates that the industry has the third-highest potential for increasing revenue by improving CX. In fact, a one-point boost in CX could generate an additional $3.39 in revenue per customer. Harvard Business Review also found that customers with the highest satisfaction spend an average of 140% more than those with lower CX satisfaction.
It’s clear, then, that there are major financial benefits to improving CX.
Analyse existing customer journeys
Your overall CX consists of many different elements, from purchasing to communications to post-sale customer service. And that’s before you consider the numerous channels and data points that feed into these elements. It can therefore be difficult to know where to start making improvements.
So what is the first step?
Analyse the customer data you already have. Look at your existing end-to-end customer journeys and identify pain points and bottlenecks:
- Where is there unnecessary friction?
- Where can automation make things more seamless and boost operational efficiency?
- Where might additional channels be beneficial to customers?
A good example is reviewing the CX around a customer’s first bill; McKinsey research found that customers who dispute their first bill are less likely to remain customers a year later.
Adopt an omni-channel approach
One key way telecom providers can improve CX is to adopt an omni-channel approach. This means giving customers a range of contact methods – from web chat and WhatsApp to email and voice – that they can use at any point in their journey.
Omni-channel approaches boost customer satisfaction by letting customers contact companies however they want, whenever they want. They can also improve operational efficiency by reducing expensive and time-consuming calls into contact centres.
To be successful, however, you need to make sure channels are joined up so customers can seamlessly switch between them without having to repeat themselves.
Prioritise CX strategy
Improving CX should be high on the strategic agenda of every forward-thinking telecoms company.
Whether it’s implementing a customer-centric culture, deploying digital self-service, integrating customer data or freeing staff to focus on vulnerable customers and trickier issues – your strategy should focus on one goal: improving your relationship with customers. Once you have that foundation in place, you’ll be in a strong position to implement ongoing improvements that drive revenue and boost your competitiveness.