Use Case

Customer Loyalty

Turn your high-value customers into a key source of retained revenue by driving loyalty through personalization

3 min. Read

How effective are telco customer loyalty efforts? In many cases, they may have little actual impact on customer retention or revenue, and this is often because they’re not effectively tailored to customers’ interests or fail to identify the key factors that go into their decision-making.

Improving segmentation models to boost customer loyalty

Customer loyalty drives retention. This is especially true for post-paid telco customers where recontract is a critical decision point every two to three years. Therefore, if you’re treating loyalty and retention as separate strategies, you’re likely to be wasting resources and duplicating effort. 

Loyalty is all about offering the best possible experiences throughout all stages of their contract, which makes customers feel their telco has their best interests at heart, they feel valued, and are appreciative of what you have to offer.

You need to understand your customer engagement at every decision point in order to ensure they stay loyal. Having this knowledge allows you to develop more detailed models that accurately reflect their behavior and the reasons behind their actions, such as how likely they are to sign up for a new deal. 

For example, is someone who is out of contract still paying due to inertia? Or are they actively waiting for the release of a new handset before looking for the best deal. These two customers will have very different attitudes and will need to be managed in different ways. 

Elsewhere, is a person coming to the end of their contract a likely repeat customer, or did they only sign up because of a particularly tempting deal, which may make them more likely to jump ship for a better offer? Being able to identify and segment these users is vital in providing the right messaging to instill loyalty.

A traditional churn model won’t spot these behavioral differences, which may mean customers receive offers that aren’t relevant to them at that point in their journey. But with the right data, you can build tailored models that can much more effectively segment these customers and develop unique treatments that target them to maintain their loyalty.

Improving the lifetime customer experience

The best way to reduce churn and improve loyalty is to excel at your core products and services. For a mobile provider, this will typically be with solid basics like a reliable service, a strong data connection and no dropped calls, as well as offering the products and services that closely match the customer’s lifestyle. 

Using the first-party data telcos hold on their customers, such as their weblogs, can give huge insight into what matters to individuals. Delving effectively into these details can reveal hidden behaviors, interests and connections that show what people care about and what offers or messaging they’re likely to respond positively to.

Get the fundamentals right and you’ll automatically generate loyalty and, in turn, more retained revenue. A good customer data solution can show you exactly what elements matter to customers, whether you’re meeting their expectations, and what you can do to better engage them.

With the right messaging, you can quickly build loyalty by developing a deeper relationship with customers across your business. Whether it’s automatically moving them to the best-value deal, or value-added offers for other areas of your business, this helps increase the ‘stickiness’ of customers. As a result, they’ll be less liable to churn, higher spending and more likely to recommend you to others.

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