Retaining Customers: Upselling to Increase Wallet Share
As an industry, telecommunications has excellent prospects. After all, communication is one of the most important facets of modern society. But resting on the current need isn’t what separates the big fish from the little fish in this fairly crowded pond. By analyzing data, CSPs can zero in on the upsell opportunities that best suit current customers’ needs. With the right data, everything from customer behavior to small business credit can be used to define and pinpoint effective marketing efforts for retaining customers and making them more profitable overall.
In a panel for the 2011 APAC Exec Forum, Naras Eechambadi, senior vice president and general manager of Quaero, pointed out that CSPs already have the benefit of extensive customer behavioral data. What better way to understand how your customer thinks and acts than by checking out roaming usage and communication packets? With this data in hand, CSPs can then preemptively upsell new services based on that behavior. Take a customer with roaming charges, for instance. Pinpointing and analyzing the behavior may reveal that the customer is a business traveler. It could be the ideal opportunity to upsell to a contract that offers more roaming time before he searches elsewhere for a more inclusive plan.
Of course, behavioral analytics are expensive, so Equifax offers products and services that allow you to effectively analyze and pinpoint those customers who may benefit from new services and appreciate the attention, therefore increasing customer loyalty and retention.
Personal marketing efforts
At the APAC Forum, Kevin Loh of Bain & Co. explained that mining current data allows CSPs to market to a person’s lifestyle, travel and communication habits. You can also use Equifax tools like TargetPoint Acquisition to comb through extensive data and identify upselling opportunities so you can market to those who will be the most profitable — even as soon as a customer opens a new account.
Case in point: A customer is a member of a multigenerational household that would benefit from a pricier but more convenient shared-minute contract. CSP marketing strategies should target customers’ current needs while protecting the company’s best interests. By suggesting a family group of customers upgrade to a shared plan, you create convenience for your customer and increase wallet share for yourself.
Small business opportunities
Don’t forget about small businesses when creating strategies for upselling and retaining customers. Small businesses can be a highly profitable sector for conscientious CSPs, particularly when it comes to upgrading to new devices. By obtaining an overview of a small business’ profile, you can easily match the type of device that would be best suited for a small business’ needs and then suggest the upgrade in language that business will uniquely understand.
Whether it’s upgrading to a device that works as a card reader for a small business or suggesting better contract options for individuals, upselling to bigger, better services based on intelligent data allows you to retain customers while increasing your wallet share overall.
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