Maximising Customer Lifetime Values Through Improved Customer Care
2018.03.06   |   31 pages   |   Revenue Continuity

Author:
Robert Harrison


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Increasing numbers of mobile operators are improving their customer care in the hope of increasing customers’ loyalty and thereby minimise the high levels of cost associated with high levels of customer churn.

However, low levels of churn are not in themselves a guarantee of a profitable business since that also depends on the levels of ARPU and gross margin, or EBITDA.

Customer lifetime value (CLV) provide a convenient single measure which takes account of all three KPIs and has the merit of revealing their optimum mix.

It also provides a convenient measure with which to assess the effectiveness of improved customer care on overall business performance.

In this report we look at the actions taken by three major MNOs, O2, Telstra and TELUS to improve customer care and compare their CLVs with other operators operating in the same markets.

 

Companies: TELUS, Bell Canada, Rogers, Telstra, Optus, Vodafone Australia, Telefonica O2, Vodafone UK, Three UK, EE, Hutchison, Capita, Salesforce, SAS, Siebel, Accenture, IBM,

Countries: Australia, Canada, UK,

Keywords: databases, CRM, organisation, ARPU, EBITDA, SRC, SAC, engagement, AI, churn, integration, outsourcing, Customer lifetime value, Customer experience, apps, channels, Customer care, postpay customer lifetimes, CLV, chatbots,

1

Overview

1

2

Introduction

2

2.1

Background to the Report

2

2.2

Report Content

2

2.3

Currency and Conversions

3

2.4

Further Questions and Feedback

3

3

Customer Lifetime Value

4

3.1

Definition of CLV

4

3.2

Application and Methodology

4

3.3

Churn and Lifetime

5

3.4

CLV and Profitability

5

3.5

Assumptions

5

4

Case Studies

7

4.1

Introduction

7

4.2

TELUS - Canada

7

4.2.1

Strategy

7

4.2.2

Management and Staff Engagement

7

4.2.3

Customer Facing Actions

8

4.2.4

Customer Satisfaction

9

4.2.5

TELUS Customer Lifetimes 2009-2017

9

4.3

Telefónica O2 – the UK

10

4.3.1

Strategy

10

4.3.2

Organisation & Outsourcing Customer Care

11

4.3.3

Ease of Use and Automation

12

4.3.4

O2 Priority and Refresh

12

4.3.5

O2 Customer Lifetimes 2009-2017

12

4.4

Telstra - Australia

13

4.4.1

Strategy

13

4.4.2

Organisation

13

4.4.3

Customer Satisfaction

14

4.4.4

Database

14

4.4.5

Networks

14

4.4.6

Telstra Customer Lifetimes 2009-2017

15

5

Comparative CLV Performance

16

5.1

Introduction

16

5.2

TELUS and Canada

16

5.2.1

KPIs: Lifetime, EBITDA and ARPU

16

5.2.2

Canadian CLVs

19

5.3

O2 and the UK

20

5.3.1

Introduction

20

5.3.2

UK KPIs: Lifetime, EBITDA and ARPU

20

5.3.3

UK CLVs

23

5.4

Telstra and Australia

25

5.4.1

KPIs: Lifetime, EBITDA and ARPU

25

5.4.2

Australian CLVs

26

6

Findings and Conclusions

28

6.1

Introduction

28

6.2

Achieving High CLVs

28

6.3

Increasing Customer Lifetimes

29

7

Recommendations

31

 

Appendix – Feedback Questions

32

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