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michael.aphillips
28 days agoChris563
1 month agoMark_W
1 month agodandybramble
1 month agoTreasure585
1 month agospartan3002
1 month agoE7700514t77
1 month agotrevjohn
1 month ago.
Report: 1 in 5 new telco customers are value-destroyers
May 24, 2022
Data solutions expert, Sagacity, has revealed that >20 per cent of newly acquired telecom customers have a forecasted negative lifetime value and drain around 40 per cent of company profits every year. While the remaining > 80 per cent of new customers turn a profit, Sagacity emphasises their value still varies widely, with the top quartile of customers bringing in over 65 per cent of profits.
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Sagacity warns this is creating a multi-million pound revenue leak and is urging telecoms companies to move away from outdated volume metrics towards more meaningful value-based models.
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To illustrate the benefits of a value-based approach, Sagacity has segmented a typical telecom customer base into four different categories:
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Value-destroyers – These customers have a negative lifetime value, including elements such as high cost to serve, high cost of acquisition, and high churn rate. Often, these are the customers telecoms companies want to avoid and offering cheaper deals is rarely worth it.
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Plodders – Barely above the value-destroyers, these customers don’t spend much, but have a lower churn rate and low cost to serve. However, there is often not much room for upselling – happy with what they have and will continue plodding on with the service.
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Swingers – These customers sit in the middle, but with the right offers they could be persuaded into becoming money-makers. Equally, if not serviced in the right way they have a propensity to churn.
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Money makers – These customers bring in over 65 per cent of profits alone. Long tenures, high monthly spend, open to upgrades and bundle offerings, and with a low cost to serve, these are the kind of customers every telecoms company wants to attract and retain.
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I think on that basis I am classified as a plodder, but in a market of greater than 100% ! ;)). Reply
MissMarmalade
1 month agoyvonne7495
1 month ago