What are the key performance drivers reshaping the global telco industry?
As we progress through 2024, we’ve identified eight fundamental growth areas critical for sustaining telco success. Our industry experts distill the key findings into three core themes: brand, portfolio, and pricing strategies; cross- and upselling retention levers; sales and service enablers.
Explore our three-part blog series for a closer look at these growth drivers. Our team, with both international and local expertise, breaks down these global trends and highlights their value across the entire industry value chain. Read more to discover how to build value – successfully and sustainably.
Rethinking telco brand, portfolio, and pricing insights
Telcos are struggling to drive customer satisfaction and keep a balanced perception of value-for-money among customers. The 7 percent decline in the price-value ratio reveals that current prices are no longer in line with the value that customers expect to receive in return. With 43 percent of consumers reducing their telco spending, it is time to reassess pricing strategies and improve the price-value relationship by identifying and leveraging the key value differentiators. What are your brand attributes that customers prioritize and find valuable? How will you monetize in the “post-unlimited era” when increasing data volumes in your tariffs is no longer driving value? Which value-added services can you integrate into your bundle offering to improve portfolio attractiveness and increase the attach rate? How can premium and budget players navigate price pressure in competitive markets? For more insights, read part 1 of our blog series here.
Cross-selling and upselling in telco to drive customer retention and profitability
Cross-selling and upselling in telco is essential for customer retention and profitability. Our study shows that retaining customers is five times cheaper than acquiring new ones and accounts for 95 percent of profits. The aim is to ensure that customers are happy, loyal, and paying – by driving NPS. This includes reducing churn and boosting ARPU, which builds customer lifetime value. To achieve this, telcos need to leverage effective customer base management and convergence with FMC and MMC. Customers are highly responsive when telcos use value-for-money strategies and optimize offers for different customer segments. This fosters customer loyalty and helps build long-term relationships. For more insights, read part 2 of our blog series here.
Unlocking digital-age sales capabilities and leveraging FTTH growth
For better growth in 2024, telcos must prioritize effective sales optimization measures and continue with an efficient FTTH network expansion that results in reasonable take rates. While only around 60 percent of customers contact customer service at all, only about 40 percent of those who do can have their issues resolved within the first contact, highlighting the additional optimization potential. At the same time, rolling out FTTH and driving adoption is becoming increasingly challenging due to rising costs and plateauing take rates, which is why telcos need to ensure they focus on the right regions and sustain ARPUs through value selling, while staying competitive. For more insights, read part 3 of our blog series here.
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