Finding a point of difference is getting harder for Telco resellers, yet its going to be key to slowing down commoditisation. When customers can’t actually see what they’re paying for, the likelihood of switching providers is high. In our industry – its the dreaded ‘churn rate’!
Marketing 101 tells us that competing on price is not a sustainable strategy. Yet most resellers in the market fall into the trap – fuelling the path of commoditising the industry.
In an interview with Computerworld recently, iiNet CEO called 2010 as a “switchers market” forcing the company to develop retention strategies and some aggressive advertising. In 2011, iiNet are looking to deploy applications to encourage broadband usage. Not to be left out, Internode are investing in IPTV and anticipated NBN applications. All in a bid get to out of the industry commodity cycle.
Smaller players shouldn’t feel like they’re left in the cold.
When customers are happy, they are less likely to switch providers. What keeps customers happy?
- Exceptional customer service. For example “Want to switch plans mid-billing cycle? No problem!”
- Flexibility from their existing provider to counter-offer latest competitor deals
- Bundles that are relevant to their lifestyle
- Choice! For example “Want to be ‘green’? Don’t want your bills posted? We also offer email PDF and web access”
- Transparency – don’t give them a surprise when they get their latest bill for excess usage. Set up an Event trigger.
- Business customers are increasingly looking for contents and cloud based applications.
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When customer contracts are nearing expiry, don’t sit back and wait for them to switch!
Take the initiative and contact them. Give them an offer to sign up again, don’t wait for them to go hunting around for your competitors.
Tell us what some of your “Retention strategies” will be for 2011…
Keep an eye on IINET. No contract, low cost SIM-only mobile bundled with residential & domestic broadband with a single bill makes them extremely competitive and attractive for the SME market, provided they can deliver the same level of customer service that their wholesale mobile service provider (Optus) maintains. It’s often hard to do ALL things well…
My previous provider couldn’t even tell me when my contract was ending and told me to keep ringing back after each invoice to check.