With an average annual churn rate of 27% (in some segments, it rises to well above 50%), the telecom industry has long been faced with the critical challenge of retaining customers.
These statistics shouldn’t come as a surprise, as the wireless, cable, streaming, and internet providers that make up the lion’s share of the telecom industry are known for aggressive marketing campaigns touting price, performance, and features to entice consumers to make a switch. The industry at large spent tens of billions on advertising in 2021, and this increased 5% over 2020. Clearly, the marketing blitz to gain market share is showing no signs of slowing down.
However, when you consider that the cost of acquiring a new customer is 25 times as high as retaining one, keeping customers satisfied is an equally—if not more—important consideration. This is especially true in the telecom industry, which experiences the 2nd highest industry rate of customer churn due to poor customer service. In fact, most research suggests that as price, performance, and features remain relatively similar among providers, customer service is pointed to as the primary driver of customer loyalty.
In the telecom industry, a one-point increase in customer satisfaction leads to $2 in additional revenue per customer, so it’s well-worth dedicating significant resources towards improving the customer journey. In our experience working with telecom providers, the core elements of a Customer Experience (CX) strategy need to focus on:
Multiple Communication Channels: Whether it is through voice, the web, chat, or email, customers want to interact through their preferred channels. An effective customer experience in today’s environment should offer options so they feel in control of their own journey. However, Execs In The Know reports that nearly half (47%) of customers feel forced into a certain communication channel. Brands that put the customer in control and provide a personalized experience, like we do for our clients here at Servicing Solutions, will experience a higher rate of customer retention.
Find The Right AI/Self-Service Tools For Your Customers: There are no shortages of AI and self-service tools to support the customer experience. However, one size certainly does not fit all. Before recommending or implementing any tool on behalf of our clients, our technology team analyzes the solutions that are most likely to be adopted by a particular customer base, and positively impact customer loyalty and our clients’ bottom line.
Human Touch: It is estimated that more than 70 percent of customer interactions will happen digitally in the next 2 years. However, it is still critical to proceed with caution. Despite the continued move towards digital self-service, 60% of customers will still bypass an IVR altogether, and 80% would avoid a company after a poor experience with AI tools.
Many experts such as Forbes Magazine Contributor Shep Hyken fear too many companies will lose sight of that and continue to “over-automate and over-digitize” to the detriment of creating real relationships with customers. He goes on to say that “smart companies will recognize the balance needed between the digital world and the human-to-human world.”
I absolutely agree and we will continue to offer access to trained and empathetic live agents for as long as it is preferred by our client’s customers.
Ready to take your telecom customer experience to the next level? Start the process of “Investing in Real Experience” and drop us a line today at sales@servicingsolutions.com.