Greenwich Consulting Thoughts - October 2012
Customer Base Management: Moving to industrialization
In most markets, telecom operators are facing a slowdown in customer acquisitions and a decline in ARPU. The rise of multi-equipment, acquisition of lower revenue customers, and fierce competition combine to drive ARPU down and force operators to create more sophisticated marketing and pricing strategies, especially in emerging markets where prepaid consumers frequently represent over 95% of the base.
Customer Base Management (CBM) has been developed in this context to enhance an operator’s main asset: its customer base. It consists of stimulating the base with targeted “below-the-line” offers and promotions in order to drive usage increase ARPU and reduce churn. In this article we will share selected success stories where the operator has managed to increase ARPU with up to 10% and decreased churn with 15%.
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