Over the years, telcos across the globe have relied on aggressive short-term promotions to attract new customers. This strategy, though effective in the short term, doesn’t result in long-term benefits: Customers—especially those in high-churn markets—happily change providers when they find the next attractive deal. But most telcos feel stuck with these tactics because they’re under pressure to meet their quarterly revenue goals—which puts them in an endless cycle of hunting for new customers.
Looking at the Net Promoter Score (NPS) rankings across industries, the telecom industry has been one of the poorest performers in the past five years, with scores well under 50 meaning low customer affinity. The only way they can boost their NPS score is if they pivot their short-term, product-centric customer strategy to a longer-term and customer-centric approach wherein customer experience and impact drives product decisions. Fortunately, recent unprecedented events have created an opportunity for telcos to break out of the cycle and shift their mindset from viewing customers as a transactional unit to treating them as a long-term strategic asset.
In this new customer strategy, customer cohorts are regarded as an asset to an organization, they’re loyal to the company’s services and products, and even serve as an ambassador for the brand.