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Industry Resources

Fight churn and grow revenue

Wednesday 11 September 2019 | 11:00 CET | Advertorial | provided by atmail

The true extent and cost of customer churn in the telco industry is difficult to articulate. Whilst the 2017 Aspect Consumer Experience Index reported that 20 percent of telco customers churn, the official figures released by the top four United States carriers (AT&T, Verizon, Sprint and T-Mobile) suggest the figure is more accurately 1.9 percent, according to Arthur Middleton Hughes (2008) and Kapoor (2017).

But even this is too high, because if the customer base across those carriers is 100 million, this could equate to a loss per carrier of US$65 million per month of future revenue from those customers, says Kapoor. Plus, the cost of acquiring replacement customers.

If we use the average customer acquisition cost of Bell and Telus, which was reported as US$400 (CA$521) in the Financial Post in 2017, this means that the top four US carriers are not only kissing goodbye to $65 million per month in lost future revenue, but another $76 million in customer replacement costs.

What can telcos do to fight churn and grow revenue? Should they gamble on IoT and expensive infrastructure projects? Or instead, tap into existing value-added services, such as branded email hosting?

Branded email hosting still represents a huge and expanding opportunity to astute telcos, ISPs and hosting providers, given that The Radicati Group predicted in March 2018 that more than 333 billion emails will be sent per day by year-end 2022.

Modern, white label, email hosting has the power to:

  • boost brand recognition;
  • increase customer engagement;
  • reduce churn;
  • cut costs; and
  • become a key source of alternative revenue, because it offers a wide range of monetisation options designed to suit the unique goals of each telco, ISP and hosting provider.

Want to learn 5 ways to monetise branded email hosting?

 

 

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Categories: General
Companies: Hughes / Sprint / Telus / T-Mobile / Verizon
Countries: World
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