CUSTOMER RETENTION STRATEGIES Memory Ndoro-Mandiya Marketing & Sales Director NetOne Cellular (Pvt) Ltd 1
CUSTOMER RETENTION STRATEGIES
Memory Ndoro-Mandiya Marketing & Sales Director NetOne Cellular (Pvt) Ltd
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Personal CRM Foundation
“We strive to delight our customers so that they will never think of leaving us...until death do us part.” Memory Ndoro-Mandiya
Customer Retention Strategies Overview
• Keeping your customers from going to your competitors. (Being possessive of your customers)
• A close bond between subscriber and operator is climate enough for increased and sustainable operator revenue generation as well as improved customer satisfaction.
• Building relationships with your corporate clients, individuals, government and wider spectrum of customers.{Recognising Diversity)
• Zimbabwean telecoms landscape is highly competitive. One cannot operate without any promotion for customer retention.
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Some Highlights in Zimbabwe’s Telecoms
• Fastest growing industry recovering from the ‘lost decade’.
• Increased investments towards broadband services supported by optic fibre networks.
• OTT players have eroded telecoms revenue.• Increasing internet penetration, currently at 31%,
well above the regional average of 13%. (Source- POTRAZ)
• This accelerated growth in the industry was also achieved as MNOs prepare for the hosting of (UNWTO) General Assembly from 24-31 Aug 2013.
Subscriber Data recorded Q2 2013
Service Total Subscribers Penetration Ratio
Mobile Voice 10 914 770 86.6%
Data and Internet 3 266 411 31%
Fixed Voice 346 211 2.75%
(Source- POTRAZ)
Telecoms Industry Using Porter’s 5 Forces
NetOne Background
• GSM Mobile Telecoms Company• Launched 1996• Wholly owned by the Government• Other operators are private owned • Offers broadband,• Prepaid roaming with MTN in SA• Under 2.5million subscribers • Population of Zimbabwe 12million• Has a fully fledged CRM network
NetOne Subscriber Mix• NetOne adopted a worldwide trend in its subscriber mix:
o 90% and 10% of Prepaid and Post Paid respectively
• A considerable share of the post paid market. The largest in Zimbabwe.
• Most strategies are geared towards prepaid market
• NetOne has adopted a 360degree view of customers, accessible through a contact centre, website, dealership network, post offices, retail outlets, mobile kiosks, franchise outlets and street vendors
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Life Cycle StagesA customer has “life cycle stages”
1. Contact Phase
Gain new subscribers through CRM, and providing choice
2. Acquisition Phase
3. Retention Phase
4. Loyalty Phase
Build a database of customersthrough market segmentation-Understanding Needs.
Keeping your customers from going to your competition (Being possessive of your customers)
Degree of devotion/emotional attachment/faithfulness to a product which strengthens the brand and the consumer
5As towards Addressing Subscriber Needs
i. Acquisition: • build customer database of subscribers
through Management Information Systems (MIS)
• understand their purchase conditions• offer them post-purchase reassurance• promote the price-value relationship• establish the foundation for a long-term
relationship• know the associated costs 10
5As (cont)
ii. Availability: • products and services 24/7, 365• innovative products and VAS • network quality• targeted market segments• Responsible Business
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iii. Accessibility: • broad and varied distribution network, • network coverage, • 24/7/365 Call Centre. • customer touch points such as online, self
service, shops, retail distribution chain, franchise outlets etc
• subscribers need to build confidence in a network by easily accessing the customer touch points.
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5As (cont)
iv. Affordability: • value for money • segment and package based pricing *This is a key retention point
v. Attainability: • implementation and monitoring of plans • technology and human capital. There
must be a feedback loop between service provider and consumer
5As (cont)
Dollar a Day Promotion-Viral Campaign 1
Objectives
• Customer retention • Subscriber acquisition • Revenue growth • Reduce interconnection costs• The cost of attracting a new customer is said
to be 6 times the cost of retaining an existing customer. (Kotler: 1997)
Promotion Mechanics
• Launched the Dollar a Day Promo on 1 July 2012 which still remains the killer promotion.
• Recharge with $1 and get 1MB free data PLUS 1hour free talk time on-net calls from time of recharge until 1800hrs same day PLUS free net calls From 1801hrs to 0600hrs the next day
• $5 recharge participated in giving 5 times the above benefits
Promo Impact
• After the first month NetOne recorded a 30% revenue collection growth.
• New SIM card sales shot up 245% from a previous monthly average of 35K to 123K in August 2012
• Prepaid ARPU grew to $5 from $3
• Massive appreciation of the promotion was recorded from our customers on social media, radio, local press and through Call Centre.
• Promo has since evolved into a package
Promo Impact (Cont)
• Reduced churn• Increase in subscriber base• Increased revenue • Renewed market confidence in the
brand• Increased traffic in customer touch
points• Reduced interconnection costs
DASH FOR CASH- Viral Campaign 2
Objectives
• Revenue growth from SMS• Generate excitement within the
brand• Acquisition strategy – cash prizes• Retention • Promotion initially ran from 10 June
to 10 September 2012.
Promo Impact• 3 million SMSes in 3 months• Grand prize of ZAR 232 500
($25k)
Cash Prizes
• Up to ZAR 24 000 ($2.5k) weekly prizes
• Up to ZAR 46 500 ($5k) monthly prizes
Social Responsibility Disbursements
NetOne Charity Shield• The NetOne Charity Shield is a 3 year
partnership with the local PSL. • NetOne pioneered team selection
from subscribers via SMS to select the four teams that battled it out for the title.
Retention phase
To recap
• Create long-term, committed and loyal customers.
• Develop a service philosophy.
• Increase the responsiveness to customers.
• Identify global trends which have an impact on your customers and close service gaps.
• Measure customer satisfaction.
• Reward positive customer behaviour.
• Know your retention-related costs. 26
..see you at the UNWTO General Assembly August 2013 at the Zimbabwean side!!!!! .........Be There!!!