Customer attrition rates vary from one industry to the next. Certainly one industry where customer churn is particularly high is among mobile telecom carriers, where annual attrition is nearly 40 percent, according to DMG Consulting LLC president Donna Fluss. There are several reasons for this - including widespread competition, quality issues, as well as customer dissatisfaction with questionable charges. One mobile carrier -- Greek mobile telecommunications operator COSMOTE - is succeeding at retaining customers by personalizing offers to its customers across all of the touchpoints that they use.COSMOTE, which won the Integrated Marketing Performance category in the Gartner & 1to1 Media CRM Excellence Awards 2013 in the EMEA and Asia Pacific region, has created a "CRM Campaign Plan," a targeted, one-to-one communications architecture across the company's channels in which it makes use of customer information to enhance customer loyalty and customer experience.
As 1to1 Media Senior Writer Cynthia Clark notes in her article about COSMOTE, a critical part of the company's CRM Campaign Plan is the notion of making "the right proposition, to the right customer, at the right time, and on the right channel." For instance, COSMOTE has made an effort to rerate every customer bill based on data for commercially available rate plans to provide each customer with two offers--one for migration to a new rate plan and a second that includes the activation of an add-on service. COSMOTE is able to use customer data through its use of Oracle's Siebel marketing campaign platform to make an offer that's most likely to convert each customer. So if a customer has been increasing their use of mobile web minutes, that customer will be sent a rate migration offer that's in line with his behavior. Meanwhile, another customer that's deemed at risk of churn will receive an offer that provides him with more value at the same or less.
COSMOTE's efforts have led to annualized retained revenues of approximately â‚¬10 million.
Customers, including mobile phone users, share a ton of information about their needs, preferences, and behaviors. Carriers like COSMOTE that leverage this information are discovering how to provide customers with personalized offers that can lead to loyalty and higher customer value.