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Customer Economics: The role of loyalty and CEM in maximizing customer lifetime profitability
Market Study
Published: April 2012
Pages: For full details, please email deborahf@cmsinfo.com
Tables: For full details, please email deborahf@cmsinfo.com
From: GBP 2495.00 Buy Now!
Research from: telecomsmarketresearch
Sector: Mobile Strategies
Loyalty is much more than reward programs. It is all about managing the customer relationship throughout its entire life time. The operators need to take a holistic view, involving every part of their business, focusing on delighting customers and optimizing their profitability.”
Informa’s telecoms loyalty research program includes a selection of case studies covering different areas of customer loyalty, including prepaid and postpaid strategies, customer experience management, customer services transformation, handset subsidies and convergence.
- Operators have realized that loyalty is one of the most important strategies to guarantee customer profitability and keep a leading position in their market. The first initiatives were based on rewards programs, but operators will need to evolve to guarantee an outstanding relationship with their clients during the entire length of the relationship.
Loyalty programs demand a significant investment from operators, and just offering a program to the entire customer base can have a negative impact on profitability. Operators will need to apply segmentation strategies – not only to offer target products, but also to measure the profitability of different customers. Loyalty programs should be varied based on different customer profiles and will need to focus on rewarding loyal customers.
Customer life-time value is becoming more important to the operators’ loyalty strategies. Operators will need to understand the impact of the different factors ranging from device subsidies to offering the right plan at the right price. As most markets are reaching more than 100% mobile penetration, operators will not only need to protect their customer base, but also be able to maximize their approach with their current customers – for example, knowing what the ROI is for migrating a feature-phone customer to a smartphone.
How will this research help you:
- Evaluate the best strategies in different customer loyalty areas.
- Manage the customers’ profitability throughout their relationship with their operator.
- Assess competitor positioning and direction through case studies and profiles.
- Gain an understanding of the state of customer loyalty within the telecoms industry and how it will evolve.
Case studies include:
- O2
- US Cellular
- Sprint
- Bell Canada
- Vodafone