Retention Strategies for Fixed Operators
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Transcript of Retention Strategies for Fixed Operators
Retention Strategies For Fixed
Operators
Vs Mobile Counterparts Edward Emmanuel
Tanzania Telecom
Agenda
Global ICT Development
Key ICT Indicators for Africa
Challenges facing Fixed operators
Retention Strategies for fixed Operators
Conclusion
World Trends
Observation on Trends
In 2002, the number of Mobile Subscribers (1.17b)
surpassed for the first time the number of fixed lines
(1.09b) worldwide
In 2005 the number of Mobile Subscribers on every
continent exceeded the number of fixed lines in
service
In terms of growth, the number of Mobile
Subscribers almost Doubled (2.18b) while that of
fixed barely grew (1.23b) in 2005
Africa: Subscribers (mil)
0
50
100
150
200
250
300
350
400
2005 2006 2007 2008 2009 2010
Mobile Broadband
Mobile Subs
Fixed Lines
Fixed Broadband
Internet Users
Source: ITU 2011.
Africa: Penetration (100 inhts)
0
5
10
15
20
25
30
35
40
45
50
2005 2006 2007 2008 2009 2010
Fixed Lines
Mobile Subs
Mobile Broadband
Fixed Broadband
Internet Users
Source: ITU 2011.
Observation
Africa is the fastest growing mobile market in the world (ITU)
A major reason for the boom is that Africa lags far behind other
continents when it comes to fixed-line phone subscribers
Africa lacks an investment-intensive infrastructure, e.g., fixed telephone
line and fixed broadband infrastructure
the large costs of stringing up telephone wires so far has not been
economically viable
The establishment of mobile phone networks has also defied structures
hostile to investments, warfare, failed states and natural disasters
Intense competition has pitted once powerful monopoly fixed Networks
against rapidly growing Mobile Networks
Challenges Facing Fixed Network
Lack of investment-intensive infrastructure, e.g., fixed telephone line and fixed broadband infrastructure
High costs inputting up Fixed Network to address the raising
Demand
Liberalization of the Telecommunication markets v. Readiness of the Fixed Operators to compete
Decline of Fixed Telephony Revenues and subscribers
Business models, company culture, organizational structure
and identities of Fixed Operators
Thus Fixed line Sector remains the least dynamic sector – While
the number of fixed lines have been falling in Developed
counties, they are developing very slow in developing world (ITU)
What Next For The Fixed
Operators?
Retention Strategies
Manage Customer Process
Transforming the Business Models
Align the Strategic
Choices and
capabilities to the specific needs of the
customers
Greater Customer
Intimacy
Need based
Segmentation
Time to deliver
Identify Customer
Expectations
Measure Customer
Lifetime Value
Manage Customer
Information as strategic Asset
Align Strategy with Customer
Values and Expectations
Manage Customer
Experience
Integrate across the Business
Source: BMI Institute of Business Value
Elements of Customer Life Cycle
• Growth • Retention
• Acquisition • Awareness
Identify Brand values for Different target segments to
inform Innovative Market & Product
campaign
Retails Shops, Websites, multichannel contact centers are critical customer Touch points that can provide differentiation
Network Features, innovative services and solutions intelligently priced and bundled are critical for Revenue stimulation and differentiation
Billing and Payment, customer
care, marketing and other
communication present
opportunities for improved customer
experience
Positive Retention Strategies
1. Creating customer delight
2. Adding Customer perceived value
3. Creating Bonds
4. Building Customer Engagement
1. Customer Delight
Meeting and exceeding customer expectations
Understand customers, and then acquire and deploy
resources to ensure their satisfaction and retention
Going beyond what would normally satisfy the
customer.
Being aware of what it usually takes to satisfy the
customer and what it might take to delight or
pleasantly surprise the customer.
2. Customer-perceived value
Companies can explore ways to create additional
value for customers
The ideal is to add value for customers without
creating additional costs for the company
If costs are incurred then the value-adds may be
expected to recover those costs e.g
Loyalty schemes
Customer clubs
Sales promotions
3. Bonding
Social bonds
positive interpersonal relationships between people on
both sides of the customer-supplier dyad
Structural bonds
when companies and customers commit resources to a
relationship.
these resources yield mutual benefits for the
participants
Resources committed to a relationship may or may not
be recoverable if the relationship breaks down
4. Build customer engagement
Highly engaged customers have levels of emotional
or rational attachment or commitment to a brand,
experience or organization that are so strong that
they are highly resistant to competitive influence
Making Use Of The Available Infrastructure
Convergence
Fixed Mobile
Convergence
(FMC)
Telco Media
Convergence
(TMC)
• Seamless connectivity between fixed and
wireless telecommunications networks
• Provide services to users irrespective of location, access technology, and terminal.
• Build and offer multiple services out of, integrated or converged networks, fixed and mobile
• Wide coverage remains the viable & Cost effective option for deploying services
• Broadband technologies enable operators to broadcast or stream multimedia signals to their subscribers
• Engage in complex web of collaboration
with the media and entertainment, IT
• Partner to create value
Triple Play/Quad play
Explosion in data service revenues
High demand of data
related services
Narrow Consumer Options
and search costs
Triple play: the provision of two bandwidth-
intensive services - high speed internet access
and television – with a less bandwidth-
intensive service, fixed line telephone.
Quadruple Play is a triple Play that adds
Wireless or Mobile telephony Services
International Data Cables
Arrival of several international data cables
Rising demands for major
Bandwidths
Cross border connectivity
Backhaul connectivity is
crucial because it
enables transmission of
intra-regional and other international traffic
Existing Service
Make use of all services available in the Fixed
Network
Corporate services and solutions such as data virtual
private networks (VPNs) and multi-protocol label switching
(MPLS)
Data products and services such as broadband and fixed-lines
Whole sale Business: providing guaranteed bandwidth to
businesses between major commercial centres
Conclusion
Fixed-line telecommunication Opportunity as backbone providers (fiber optic
network, for the Internet, and fixed lines still provide the fastest data speeds by
far)
Growing customer demand for higher bandwidths and the time to deliver
Customers do not care what technology is used to transmit their data or how
the Functions they use are supported. Their primary concern is service that
addresses their needs
Success will depend on each players ability to combine its own differentiating
strengths (such as Customer Management, network assets and service
creation with the capabilities of partners to create seamless communication
services that meet the needs of targeted customer segments - IBM
END OF PRESENTATION
Thank you