Sunday, August 9, 2009

Service Innovation key to subscriber retention

There is a growing threat to operators from different web companies that are trying to get into mobile arena. In addition, Upstart regional service providers are threatening the status quo of big Telco operators. In times like these, Customer retention is critical to most of the operators. According to McKinsey, Satisfying and retaining current customers is three to 10 times cheaper than acquiring new customers, and a typical company receives around 65 percent of its business from existing customers.

What does it take to increase retention? Folks from CMO council have come up with a new report called “Service Invention to Increase Retention”. The report dwells into details on subscriber retention and how to avoid churn. The Chief Marketing Officer (CMO) Council, founded in 2001, is dedicated to high-level knowledge exchange, thought leadership and personal relationship building among senior corporate marketing leaders and brand decision-makers across a wide-range of global industries. The CMO Council's 5,000 members control more than $125 billion in aggregated annual marketing expenditures and run complex, distributed marketing and sales operations worldwide.

According to the report, Key shifts that are impacting churn and loyalty
Rates include:
• Convergence of technology (voice, data, video and wireless) and competing,bundled Offerings from multiple providers.
• Advent of new Voice-over-Internet Protocol (VoIP) service providers and web-based social networks and interactive communities.
• Merging of wireless communications with high-speed Internet connections in homes and public access environments.
• The rapid shift to wireless-only households from lucrative wireline accounts (32 percent of U.S. households will have wireless-only services by 2012, from 15 percent today).
• Flat-rate unlimited calling plans from new upstart regional service providers.
• Market embrace of the digital lifestyle and more personalized,on-demand services and experiences.
• Increasingly diversified and fragmented entertainment,information and interactive offerings from niche providers.
• Loss of confidence and attrition of accounts in the financial services industry as consumers and businesses struggle with the economic downturn, credit crunch, huge portfolio losses and net worth declines.
• Digital device dependency and the advent of mobile entertainment, connectivity, banking,payments, remittances and other essential needs.

For more information, please go ahead and download the free report Free Report. The free report has some valuable information. If you find the free report interesting and valuable, Please go ahead and buy the report.

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1 comment:

nmatthews said...

Awesome!!
Thanks for sharing.

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