Tuesday, January 4, 2011

Telecom - automated tariff optimization as the next improvement in customer relationship

Yesterday, I received two messages from my telecom provider.

The first message was an SMS notification that I reached 50% of volume granted by my data plan. I like this kind of positive message when it's not pushed to often.

The second message was a bill. It's usually not a pleasure to receive a bill but this one was a bit special. In the header, the provider announces that tariff optimization process has been run based on my consumption and the tariff plan that I have selected is still the best one for me.

It is also mentioned that they will automatically run this tariff optimization process every 6 months. The optimization facility was already available before but it was up to the subscriber to run it and to switch tariff. Now, at least the simulation is executed automatically.

Telecom operator considers that it's better to keep an existing subscriber than artificially increase the Average Revenue Per User (ARPU) based on poor customer relationship. Customer loyalty improvement could make a sound difference for the value of the share at the end. I consider it as a good anti-churn tool and a very good move of telecom industry inline with respect of the subscriber. A win-win deal obviously.

What is still missing is a simulation of tariff with offers from competitors. It would have been very nice to add a sentence : "and if you would have selected provider B, you would have paid x € more every month" ... if it's true.

Is "automated cross-provider tariff comparison" the next step in customer relationship improvement ?

To be continued ...

Benoit Quirynen

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