CUSTOMER RETENTION STRATEGIES. Memory Ndoro-Mandiya Marketing & Sales Director NetOne Cellular (Pvt) Ltd

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1 1 CUSTOMER RETENTION STRATEGIES Memory Ndoro-Mandiya Marketing & Sales Director NetOne Cellular (Pvt) Ltd

2 Personal CRM Foundation We strive to delight our customers so that they will never think of leaving us...until death do us part. Memory Ndoro-Mandiya

3 Customer Retention Strategies Overview Keeping your customers from going to your competitors. (Being possessive of your customers) A close bond between subscriber and operator is climate enough for increased and sustainable operator revenue generation as well as improved customer satisfaction. Building relationships with your corporate clients, individuals, government and wider spectrum of customers.{recognising Diversity) Zimbabwean telecoms landscape is highly competitive. One cannot operate without any promotion for customer retention. 3

4 Some Highlights in Zimbabwe s Telecoms Fastest growing industry recovering from the lost decade. Increased investments towards broadband services supported by optic fibre networks. OTT players have eroded telecoms revenue. Increasing internet penetration, currently at 31%, well above the regional average of 13%. (Source- POTRAZ) This accelerated growth in the industry was also achieved as MNOs prepare for the hosting of (UNWTO) General Assembly from Aug 2013.

5 Subscriber Data recorded Q Service Total Subscribers Penetration Ratio Mobile Voice % Data and Internet % Fixed Voice % (Source- POTRAZ)

6 Telecoms Industry Using Porter s 5 Forces

7 NetOne Background GSM Mobile Telecoms Company Launched 1996 Wholly owned by the Government Other operators are private owned Offers broadband, Prepaid roaming with MTN in SA Under 2.5million subscribers Population of Zimbabwe 12million Has a fully fledged CRM network

8 8 NetOne Subscriber Mix NetOne adopted a worldwide trend in its subscriber mix: o 90% and 10% of Prepaid and Post Paid respectively A considerable share of the post paid market. The largest in Zimbabwe. Most strategies are geared towards prepaid market NetOne has adopted a 360degree view of customers, accessible through a contact centre, website, dealership network, post offices, retail outlets, mobile kiosks, franchise outlets and street vendors

9 Life Cycle Stages A customer has life cycle stages 1. Contact Phase 2. Acquisition Phase Gain new subscribers through CRM, and providing choice Build a database of customers through market segmentationunderstanding Needs. 3. Retention Phase Keeping your customers from going to your competition (Being possessive of your customers) 4. Loyalty Phase Degree of devotion/emotional attachment/faithfulness to a product which strengthens the brand and the consumer

10 5As towards Addressing Subscriber Needs i. Acquisition: build customer database of subscribers through Management Information Systems (MIS) understand their purchase conditions offer them post-purchase reassurance promote the price-value relationship establish the foundation for a long-term relationship 10 know the associated costs

11 5As (cont) ii. Availability: products and services 24/7, 365 innovative products and VAS network quality targeted market segments Responsible Business 11

12 5As (cont) iii. Accessibility: broad and varied distribution network, network coverage, 24/7/365 Call Centre. customer touch points such as online, self service, shops, retail distribution chain, franchise outlets etc subscribers need to build confidence in a network by easily accessing the customer touch points. 12

13 5As (cont) iv. Affordability: value for money segment and package based pricing *This is a key retention point v. Attainability: implementation and monitoring of plans technology and human capital. There must be a feedback loop between service provider and consumer

14 ar a Day Promotion-Viral Campai

15 Objectives Customer retention Subscriber acquisition Revenue growth Reduce interconnection costs The cost of attracting a new customer is said to be 6 times the cost of retaining an existing customer. (Kotler: 1997)

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17 Promotion Mechanics Launched the Dollar a Day Promo on 1 July 2012 which still remains the killer promotion. Recharge with $1 and get 1MB free data PLUS 1hour free talk time on-net calls from time of recharge until 1800hrs same day PLUS free net calls From 1801hrs to 0600hrs the next day $5 recharge participated in giving 5 times the above benefits

18 Promo Impact After the first month NetOne recorded a 30% revenue collection growth. New SIM card sales shot up 245% from a previous monthly average of 35K to 123K in August 2012 Prepaid ARPU grew to $5 from $3 Massive appreciation of the promotion was recorded from our customers on social media, radio, local press and through Call Centre. Promo has since evolved into a package

19 Promo Impact (Cont) Reduced churn Increase in subscriber base Increased revenue Renewed market confidence in the brand Increased traffic in customer touch points Reduced interconnection costs

20 DASH FOR CASH- Viral Campaign 2

21 Objectives Revenue growth from SMS Generate excitement within the brand Acquisition strategy cash prizes Retention Promotion initially ran from 10 June to 10 September 2012.

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23 Promo Impact 3 million SMSes in 3 months Grand prize of ZAR ($25k) Cash Prizes Up to ZAR ($2.5k) weekly prizes Up to ZAR

24 Social Responsibility Disbursements

25 NetOne Charity Shield The NetOne Charity Shield is a 3 year partnership with the local PSL. NetOne pioneered team selection from subscribers via SMS to select the four teams that battled it out for the title.

26 Retention phase To recap Create long-term, committed and loyal customers. Develop a service philosophy. Increase the responsiveness to customers. Identify global trends which have an impact on your customers and close service gaps. Measure customer satisfaction. Reward positive customer behaviour. Know your retention-related costs. 26

27 see you at the UNWTO General Assembly August 2013 at the Zimbabwean side!!!!!...be There!!!