The holiday season is upon us, and tech gifts are at the top of wish lists. It’s no surprise then that the telecom industry sees an influx of new customers over the holiday season—but almost every new customer for one carrier means a lost customer for another carrier. The holiday season is also churn season.
This time of year, shoppers become vigilant bargain-hunters, reassessing their own wireless needs and how well those needs are being met by their provider. It may feel strategic to focus your marketing efforts on new customers, but mobile providers are wise to shift some attention to retention over acquisition during the holiday rush.
Think you're not at risk? In fact 55% of mobile users say that a lower price would be an incentive to switch providers. And with many telecom providers streamlining their services and offering unlimited plans, the incentives to switch are always available. How can you stay competitive when it seems everyone is in a race to the bottom line? Providers who focus on building—and more importantly maintaining—strong relationships with their customers are less likely to lose them to the competition. With that in mind, here are three things to consider for combatting churn and keeping customers spirits high over the holidays:
1. Long-term customers, longer-term gains
They say there is strength in numbers, but the true value of a consumer is their longevity. It is ten times more expensive to acquire a new customer than to retain one—and existing customers are willing to spend up to 67% more than new ones. Unsatisfied customers can be the squeakiest wheel, while happy customers can be your biggest advocate in their digital social networks.
Long-term loyalty brings a consistency and familiarity that consumers enjoy and find hard to turn their back on—but time-served does not mean providers can rest on their laurels. Millennials know their value and aren’t afraid to take it elsewhere.
2. How to connect with the young and the wireless
If you thought Millennials were the demographic cash-cow, think again. Gen Z, a new generation of digital natives is emerging and its needs are unique. As the average age of cell-phone users gets lower, the volume of data they consume clocks in at an all-time high. Providers who tailor their services to this emerging customer base will be top of mind for this valuable group of consumers.
3. The value of deeper data
There are specific financial advantages to long-term customers, but a less obvious one is the value of their customer data over time. The more information you have available on your consumer base the better informed your marketing efforts can be.
Customer data can be used to target those most likely to switch—and incentivize the most lucrative to stay. Newer customers offer less information, causing you to waste resources with blanket promotions or stale messaging.
The holidays are all about connection, and our relationship with our service providers is no different. By strengthening existing relationships we reduce customer temptation to chase the newer, cheaper option. A little extra effort is sure to pay, in more ways than one.
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Despite the exponential growth of customer data, major brands still fail to understand individual consumers. Moments of interaction on the phone, in the app, or at the store, don’t connect. Each channel of communication is driven by its own data and automation rules.
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