Transcript Customer Own Content Development & Application Tools

Customer Own Content
Development & Application
Tools
as Added Value for Retention
Petru FUIOREA
ROL.RO
• An ISP Customer base:
• Increases by Adds
• Decreases by Churn
• Main Churn reasons:
• Perceived Price
• Perceived Customer Care
• Perceived VAS
• Note: from Customer perspective
What almost any Provider knows
• Focused on:
• Increasing product parameters
• Decreasing price
• Bundling with black boxes
Usual Retention approach
• ‘Nice, since all customers have 100Mbps, now is time to
invest to provide them 1Gbps !’
• Nope, not nice at all. Customer perception will be
marginally influenced. And this with significant cost for
ISP.
• Our comment
• Is nice indeed to provide more than what is expected, but
bottlenecks remain, so the Customer will continue to feel
the low speed determined by source regardless of its
bandwidth. However, as for any upgrade, Providers may
have a good time spending…
Downfall of Usual Model
• ‘Good, at this moment all customers are paying just about
the cost, now is time to invest to reduce the price
furthermore!’
• Nope, not good at all. Is like you are paying customer
for using your service. And you are not an ONG.
• Our comment:
• Changing cost model not necessary implies Cost
Reduction. Investments determine a Cost Reduction only if
manage to reduce OPEX in such way that the operation is
a driver for Cost Reduction.
Downfall of Usual Model
• ‘Look at these nice lap-tops. Will be cute to give one to
each of our customers to build their loyalty!’
• Nope, is not cute at all. In fact is awful for perception in
mid and long term unless you decided to repeat the
action each and every year. At least try do it on X-mas,
so you’ll contribute in keeping alive Santa Klaus story.
• Our comment
• These black-boxes increase the cost and raise Risks, which
are very often wrongly mitigated. It is indeed mainly used,
especially in mobile market. Is just that it develops a
‘Thanksgiving Day’ behavior among customers, with the
downsides it brings.
Downfall of Usual Model
• Simple arithmetic on customer base and operations:
• Adds-Churn = increase, if positive; decrease if negative;
conservation if close to null.
• Complicate the simple arithmetic, considering
Operations:
• Adds*SAC+Churn*AMPU = EBITDA diminishing.
• Complicate furthermore, considering a saturated and
price sensitive market:
• SAC increases, ARPU decreases.
• Bottom-line: Not sustainable model in mid and long
term. Continuously increase of SAC and Churn drives
the operations into unprofitable area
Downfall of Usual Model
• Provide Value Added to your ‘connectivity’ services
• Be sure this Value Added is so perceived by your
customers
• Make this Value Added hard to be replaced or copied
• Ensure a marginal cost for bringing this Value Added
• Consider Premium versions as revenue generating VAS
Or, in other words:
• Make your customers to use harbored Provider
applications
• Make your customers contribute with content in
sheltered users community net [Provider own net]
An Alternative
Let’s see a Study Case
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Internet Access customer base: 240k
Mobile customer base: 220k
Churn Rate, Internet Access: 5%
Churn Rate, Mobile: 5%
Internet Access penetration: 11%
Mobile penetration: 102%
ARPU Internet Access: 9Euro
ARPU Mobile: 2.5Euro
Usual Retention Model implemented on both SADs
• For reference – Moldtelecom, EoH1 2011.
• Figures in +/- 10% range
Study Case – What we found
• An Interactive Platform
• For reference: see
my.moldtelecom.md
Study Case – What we suggested
• Interactive Platform for Internet Access customers, as
Added Value
•Videoconferinta
•Felicitari. [Specific local: Sf. Maria, Sf. Paraschiva, Estivale]
•WEBGAMES [Specific local: Acţiune, Shooting, Logice]
•LocalTUBE
•Divertisment
•Muzica
•WEBMAIL
•FREEHOSTING
•FILESHARING
•STREAMING
Study Case – What was implemented
• After 2 years, EoP data
• On Products with Interactivity implemented:
• Churn Rate: under 0.5%
• ARPU: 9.6Euro
• On Products w/o Interactivity implemented:
• Churn rate: 5.5%
• ARPU: 1,5Euro
Study Case – The Results
• Do you need to diminish the CR? If Yes, continue, else wait
patiently the end of presentation.
• Is the Usual Model suited for you? If Yes wait patiently the end
of presentation, else continue.
• Do you have your Customer base segmented? If No, do it as
soon as possible.
• Does the segmentation consider customer interests too? Like
habits, traditions, lifestyle, aso. If No, is time to consider it.
• Do you know what are reasons for the Churn you are dealing
with? If No, is time to understand them.
• Does your company offer Added Value? And what you named
Added Value is it a differentiator? Do customers perceive it as
you think it is? If answer is Yes, please wait patiently the end of
the presentation.
So? What a Provider may do?
• ELSE: Perhaps is time to Add Value, to build Loyalty,
to Influence Customer Perception. Let them create a
community. Let them consider your company’s
services as NOT TO BE REPLACED
So? What a Provider may do?
• MAIN WLPs
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Community PORTAL
WEB HOSTING
VPS for B2B, B2C
FileSharing
Streaming
Storage
• All with necessary applications as well
ROL.RO - White Label Products
• B2C
• B2B
• Online Social Marketing campaign
Available Solutions – as White Label
• Yes, in case of correct implementation and manifested
interest from Provider’s management
• No, in case of limited or imbalanced implementation
or limited interest from Provider’s management
Will be those successful ?
• Well, is very, very simple 
• Step 1: Let us know you are interested. By mail,
phone, a.s.o.
• Step 2: Be prepared for a deep and fair talk.
• Step 3: Implement what we, together, decided to do
I give it a GO. What next?
• CONTACT DETAILS
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ROL.RO
www.rol.ro
[email protected]
[email protected]
+40 735 300 475
• Or please pick-up or let a Business Card
Thank you for interest or patience