Customer Value Management in Telecoms
Most telecoms markets around the world have been categorised as ‘mature’, with over 100% subscriber penetration and broadband networks providing extensive geographical coverage in many countries. Along with market maturity, operators and service providers are experiencing stagnating revenues and falling profitability, leading to a thorough review of future growth opportunities to satisfy stakeholders’ value requirements.
One area where service providers have a huge opportunity to grow is by maximising the value of their existing customer base. This does not necessarily just mean selling more products or services to the same customers to prevent them from leaving the network, or engaging in short-term churn management activities. A more holistic approach to managing the value of customers as long-term assets to the service provider organisations is required if the full lifetime potential of the most valuable elements of the customer base is to be realised.
The total value of the customer base is affected by a wide range of factors, including the quality of the network itself, the range and suitability of services running on that network, and identifying the proportion of profitable customers vs. unprofitable customers using those services, as well as identifying non-network sources of value, such as realising the immense value of customer big data to third parties, managing customer-related costs, and spreading customer risk across different ecosystem partners.
The time to act is now: service providers that do not fully master the techniques of customer value management will lose out to competitors that better understand the underlying growth potential of their customer base in a more holistic manner.
By the end of the course, participants will be able to:
- Clearly define the complex concept of customer value management and the implications for managing telecoms customers
- Apply different techniques for quantifying current and predictive customer value in the short– and long-term
- Clearly identify the factors that influence the customer value calculation in different parts of the telecoms organisation
- Identify those customers which represent the greatest opportunity to generate long-term value to their organisations
- Assess ways in which their organisations can influence those customers’ perceptions of the value delivered by telecoms service providers
- Apply a range of tools to enable greater retention of customers that represent the future value base of the organisation
- Calculate the impact of different customer management techniques on customer value in the short– and long-term
- Identify ways in which the quality of the customer base can be improved to generate profitable value in the longer term
- Identify new ways to generate value from making non-telecoms products available to telecoms customers
- Improve return on customer investment