Customer churn is one of the biggest challenges facing CSPs today, with prediciting and controlling this being a huge area of concern.
“I know customers are leaving us. I just want to know why, and how I can convince them to stay?”
Customer churn is one of the biggest challenges facing CSP’s today. Predicting and controlling this is a huge area of concern. The two biggest challenges CSPs need to address are: improved customer value management & Network spend optimisation.
Improving customer value involves understanding your customer base and accurately predicting their trends and needs. We often hear CSP businesses asking, “How do we access new customer insight and accurately segment around common behaviour”?
It's a buyer's market
It’s fair to say that the consumer is better educated. They can compare (and switch) service providers more easily than before and no network provider can afford to rely solely on ‘loyalty’. It’s a buyer’s market…
Customers are segmenting into a wide variety of groups that all need serving differently – and in order to ensure continued success, your CSP business needs to be asking a number of key questions:
- How much visibility do I have of the changing size, structure and value of segments?
- What are the homogenous qualities of groups of customers that I can appeal to, in order to add value?
- How much better is my creation and use of segmented behaviour than my competitors?
- What are the interests that are attracting customers away?
- What are the profiles and behaviours of migrating consumers?
- What is the landscape of competitive offers available?
- What are the time and seasonal changes of offers and consumer interests?
There are many tools out there today that deal with ‘big data’, and it is hugely difficult for CSP’s to effectively manage their vast quantities of data. In finding an effective analytics solution to successfully utilise this data, CSPs must also navigate a minefield of compliance, regulations, data protection and other serious considerations, that affect reputation and trust in their user base.
Look to something more prescriptive
The solution is more complex than just selecting another generic analytics tool. You need to get to the heart of the issues of the subscriber base and look to something more prescriptive.
Imagine the potential business value of unlocking accurate insight into customer trends and the impact that this could have on your ability to effectively reduce churn by predicting behavior and segmenting appropriately. Imagine having the ability to understand your customer’s needs, assess whether you (or your competitors) can fulfil them and then make fully informed decisions and forecasts - how much more powerful would that be?
You could then see which of your misaligned customers were most valuable and how at risk they are from your service provision... You could keep in touch with interest groups as they change... You could address the changes in the structure and appeal of your products, in line with shifting consumer tastes and profiles… You could find a way of acting faster and more accurately than your competition, with propositions you know have worked…You could rely on a better rate of success because your response to market changes were based on your past experiments and successes, and you could predict and organise your response to market changes based on the detailed evidence stored about your customers.
Just some food for thought…