CUSTOMER RETENTION STRATEGIES

Memory Ndoro-Mandiya Marketing & Sales Director NetOne Cellular (Pvt) Ltd

1

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

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

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 24-31 Aug 2013.

Subscriber Data recorded Q2 2013

Service Total Subscribers Penetration Ratio

Mobile Voice 10 914 770 86.6%

Data and Internet 3 266 411 31%

Fixed Voice 346 211 2.75%

(Source- POTRAZ)

Telecoms Industry Using Porter’s 5 Forces

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

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

8

Life Cycle StagesA customer has “life cycle stages”

1. Contact Phase

Gain new subscribers through CRM, and providing choice

2. Acquisition Phase

3. Retention Phase

4. Loyalty Phase

Build a database of customersthrough market segmentation-Understanding Needs.

Keeping your customers from going to your competition (Being possessive of your customers)

Degree of devotion/emotional attachment/faithfulness to a product which strengthens the brand and the consumer

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• know the associated costs 10

5As (cont)

ii. Availability: • products and services 24/7, 365• innovative products and VAS • network quality• targeted market segments• Responsible Business

11

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

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

5As (cont)

Dollar a Day Promotion-Viral Campaign 1

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)

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

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

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

DASH FOR CASH- Viral Campaign 2

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.

Promo Impact• 3 million SMSes in 3 months• Grand prize of ZAR 232 500

($25k)

Cash Prizes

• Up to ZAR 24 000 ($2.5k) weekly prizes

• Up to ZAR 46 500 ($5k) monthly prizes

Social Responsibility Disbursements

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.

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

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