Cable customers for life: The smart approach to winning loyalty
In today’s race to win customers, cable companies are trapped in a contest where conventional approaches to resolving churn only put them farther behind the pack. What if it were possible to pull ahead of the competition and stay ahead, building an insurmountable lead in customer loyalty that leaves competitors in the dust?
The shift in how today’s cable market leaders treat customers is marked by a combination of personalization and service – a familiar goal much like the intimacy gained in a door-to-door salesperson’s face-to-face meeting with a customer. But there all similarity ends.
Now the “handshake” that seals the success of customer interactions is largely technology-based. Instead of ‘on the world’s doorsteps’, today’s competitive gateway is the intelligent backoffice, a sophisticated IT infrastructure that masterminds the realtime integration of billing data, business intelligence, predictive analytics and CRM to create an in-the-moment portrait of the customer: a concise view of his or her buying power, history, usage, personal preferences and likelihood to move up the value chain with future purchases.
This infrastructure, commonly called “Smart BSS,” empowers cable companies to “know” each customer and deliver a uniquely satisfying experience based on detailed insights into what has passed in the customer’s relationship with the cable company, and what will most likely come. Even more remarkably, because such systems deliver unprecedented scalability, they can perform the same miracle of intimacy across millions of customers and billions of transactions, responding to service needs proactively – even before the customer is aware of an issue – or creating customized service packages loaded with subtle feature variations defined by an individual’s known likes.
The result: a special, tailored experience “We know you – and value you as a person and a customer.”
Quality service drives loyalty
2011 Convergys US Customer Scorecard Research reveals important insights into customers’ attitudes on service capabilities:
- Service is Declining
Nearly 8 out of 10 cable customers say that in the past year the quality of service provided by their cable company has either stayed the same or is worse.
- Bad Experiences Lead to Churn
Nearly 4 out of 10 customers who had a bad experience left their cable company.
- Social Media Takes Bad Experiences Viral
Nearly 6 out of 10 people who have heard about somebody else’s bad experience either stopped doing business or avoided a company.
- Loyalty Up For Grabs
Only 5 out of 10 cable customers say they are loyal to the company. In all industries, some 80% of customers who said they are loyal were satisfied with their most recent interaction.
Today’s generation have grown up with the Internet, have different demands and a new mindset. Never owning post-paid services, preferring to demand information and, consume and pay for services in real-time. These demands call for innovative solutions with loyalty-driving features:
- Real-time convergent charging
- Predictive analytics and business intelligence
- Policy management
- Social decisioning
Loyalty is extremely important, especially in today’s competitive TV market. Get the back-office solution right and retention will grow, with loyal customers recommending the company, making frequent purchases, forgiving a bad experience, and providing input for product improvement.