My Partner - Roy Cherian - had blogged about the
role of analytics in a developing economy a few weeks back. I wanted to follow it up with a live case. As always, case studies make a tangible connect to real business, and demonstrate well how companies will be all the better to adapt best practices.
A friend of mine been a Customer of one of the leading Telecom companies in India for the past 5 years. He has 3 mobile numbers, a landline number and an internet connection with the same carrier. And his ARPU (average revenues per user) across all Products is approx $100/month. This customer had a poor experience with the carrier recently - one of his mobile numbers inadvertently got suspended. Despite repeated calls to Customer service, talking to multiple Customer Service Representative (CSR's), he was not able to get it reactivated. As a result, he cancelled his number and is in the process of moving his entire business to a competing carrier.
The carrier in question missed a significant business opportunity. What could it have done better?
- Created a list of 'High Value' Customers. In a country where ARPU's are in the region of $3 - $10, an ARPU of $100 is worth fighting for. 'High Value' is typically a function of Customer tenure, ARPU, breadth and depth of product usage, anticipated Customer lifetime, etc
- Recognized that the Customer had multiple Products. Such Customers are typically lifetime loyalists and strong advocates of the brand. The opportunity cost to the carrier is much more than the ARPU lost.
- Managed the Customer interactions better. The moment the Customer had raised the issue of the suspended connection, the carrier should have assigned a dedicated CSR to handle his case to resolution.
A culture of analytics with a deep Customer focus could have been a savior for the carrier. Unfortunately in a developing economy, managing growth often takes precedence over managing Customers. Business Leaders who are quick to realize the power of analytics to delight Customers in an increasingly commoditized world will emerge winners.