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19 | What customers really want – A customer-centric strategy for telecom operators
Overall, targeted marketing efforts helped increase sales by 12% in 2009
and significantly improve efficiency.
2.2 Stage two: Linear operations
The move toward linear operations integrates the functional units. Special-
ized marketing or sales campaigning teams use the data to resolve functional
issues, such as making marketing campaigns more efficient. Data flows
only in one direction as part of a formalized process: from the central data
warehouse teams to the specialized teams. For example: Once a month a
central team delivers a data dump of high-value customers to the marketing
team, which identifies the preferences and designs campaigns accordingly.
Realizing this kind of coordination requires organizational modifications.
At this stage, designing standardized business processes is the key challenge
for telecom operators.
In all analysis, planning and reporting processes, the focus should be on
customer-centric KPIs such as customer satisfaction indicators and cross
and up-selling ratios. These KPIs should be cascaded all the way from the
executive board down to call center agents.
All operational network, marketing and customer sales processes are ana-
lyzed in terms of customer touch points. Outbound acquisition is a case in
point. Customer profiles are evaluated by specialized sales teams in terms of
buying probabilities for certain products. Within the sales channels, the shop
agents receive up-selling recommendations via decision trees ("Next Best
Offer") for specific customers. The decision trees are generated based on
customer data analysis and integrated into the call center systems. Ultimate-
ly, processes are modified to support this linear exchange of information.
However, feedback from the functional team to the centralized data unit
is not institutionalized.
One of our recent sales optimization projects illustrates these ideas quite
clearly:
Project example 5 – Finding value-based incentives for attracting
high-value prepaid customers
Challenge: A significant share of telecom operators' gross adds are generated
in indirect channels, i.e. via dealers that are paid a commission for signing a
contract with a customer or selling a prepaid SIM card. Dealer commissions
account for most of the marketing budget. For prepaid customers, dealer
commissions are usually based on the number of SIMs sold.
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