Focus on short-term wins vs. long-term gains?
Our theme of the year ‘Boost customer lifetime value’ is drawing your attention as an operator to the dialogue between you and your customers. Why? Because we strongly believe that managing a customer relationship is never a one-time show, but rather a continuous effort to produce value throughout the lifespan of the relationship. Yet, in daily business you face the challenge to balance between short-term wins and long-term gains. Which ones should you focus on? Three essentials can help: an appealing portfolio of products and services, actionable insight from a vast array of customer touch points, and customer loyalty.
Based on experience, an appealing portfolio would include services that have undisputed local relevance such as news and weather, but also services that are vertically integrated, such as music, movies and e-payments. Important additions to the list are services offered by local authorities; filing a tax report or giving access to personal health records. A well balanced and longevity promoting service set is likely to yield long-term customer value.
To put actionable insight into works, you need to consider the two sides of the coin. The customer facing business processes pertaining to the overall customer experience, and the underlying BSS systems to present a consistent view of an individual customer, regardless of the touch point. The alignment of these two, together with calls to action drawn out of consistent rules and customer insight, will help you adjust future offers and better balance between short-term and long-term opportunities.
Recent research shows that consumers believe they are loyal to their operator. As an operator you should think of actions and offerings that can strengthen that perception amongst your customers. Hence, it is a no-brainer to invest in efforts that boost loyalty and reduce churn. The same study reveals how.