A new generation of consumers has emerged — and their expectations are higher than ever. Smart companies are leveraging opportunities to improve customer satisfaction through dynamic cross-selling.
Effective cross-selling strategy — marketing new products to existing customers, fosters loyalty, increases revenue and drives competitive advantage. Yet, in the telecommunications industry, where volatility is high and customer loyalty tends to be low, strategies encouraging customers to stay with one provider for multiple services are under performing.
A new generation of consumers has emerged — and their expectations are higher than ever. Smart companies are leveraging opportunities to improve customer satisfaction through strategic priorities designed to enhance support, personalise communications and ensure dynamic cross-selling, offering and delivering customers the services they want and need.
In previous posts, I introduced key challenges and goals of Awareness, Conversion and Onboarding, the first three of seven phases that define the Telco customer lifecycle. In this piece, I discuss the fourth phase — Cross-selling, along with challenges and solutions for driving an effective multi-channel cross-selling strategy.
Ensuring Personalised, Ongoing and Real Time Communications. In many cases, communication between Telco representatives and customers is either non-existent or ill informed, with many customers inundated with irrelevant offers. Media plans that go beyond acquisition messaging focused on prospects to using knowledge to create personalised promotions based on what we know about the prospect or customer is smart. Delivering appropriate, highly personalised content not only improves the average revenue of customers, but also, reduces churn as the need to shop around for new deals declines.
Looking at the communication curve of an average Telco customer over the full lifecycle, we see two spikes: when devices are first acquired and when it’s time to renew or terminate service. During the remaining time — known as the utility phase, customers only make contact if there is a problem with the device or service. Maintaining relevant conversations with customers from the onboarding stage is key, but communications need to take into account not just customer segments, but also, real time actions they take across the digital estate.
A mix of traditional offers created from base knowledge and propensity modeling as well as real time understanding of customer interactions ensures more relevancy to the customer, but can also drive conversion. For example, if the decision engine identifies the next best action for a customer as a data bundle, but the customer is viewing pages related to roaming, it makes sense to override the data bundle in favor of a roaming bundle. This may even prevent negative feedback if the customer travels and sees a significant increase in his or her bill. A move towards a test and learn approach where messaging and offers take into consideration real time interactions is a simple concept, yet few operators take advantage of real time activities.
Aligning Offers and Customers. While the final result is important when it comes to cross-selling, it is also important to review reasons why customers are not taking up the offers being presented. Is location to blame? Are you presenting promotions that have no context to the pages customers are browsing? Or, is it the way offers are being presented — bill insert versus push notification versus embedded in the page?
Too often, customers are presented with acquisition messages when in fact they are existing customers. Using data points such as cookie information and mobile numbers allow operators to suppress acquisition messages, creating opportunities for customers to see relevant cross-sell promotions.
Understanding which offers convert best and aligning them to customer segments is key.
Promoting Organizational Efficiency and Collaboration With multiple teams competing with one another across sales, marketing, CVM, enterprise and customer experience, organizational efficiencies suffer. Telco companies struggle to collaborate across consumer, enterprise and mobile, fixed, broadband and Tv. Conflict is often the result of different targets focused on individual business units and not the customer. Imagine what could be achieved with more collaboration across the business with aligned success metrics around the customer, shared intelligence and common goals.
In a world of eroding ARPU’s, the ability to have conversations with customers that demonstrate what is in their best interest will significantly reduce churn and improve customer satisfaction. For Telco,
customer experience management is a top strategic priority. Effective cross-selling requires the creation of an end-to-end customer lifecycle plan that ensures higher levels of customer service, loyalty and spend.