Mobile operators must better serve customers

21.08.2006
"Mobile operators are used to managing success and launching services where the customers just arrive. But in an increasingly tough market they now need to go out, determine what their customers want, and then develop and offer services to meet that demand," so says Ian James, senior consultant within Ericsson SA.

The cellular telecoms business is probably the most successful business ever, he adds. Demand for mobile phones and SIM cards is universal, even amongst those who today do not have access to, or cannot afford to join the ever-expanding mobile community. But in a rapidly saturating market, with competition intensifying, mobile operators are finding it increasingly difficult to hang on to their customers.

Churn rates are estimated to be between 15 percent and 25 percent, meaning that any given operator is losing up to a quarter of its customer base to a competitor every year. Furthermore the launch of new, advanced data services, using technologies such as GPRS, MMS and 3G are not being met with the same enthusiasm experienced with traditional voice and SMS services.

Mobile operators are finally being forced to focus on actively retaining customers and growing the average revenue per user (ARPU).

"Operators need to ensure that they are not doing anything to chase their customers away, and, at the same time, give them reasons to stay," says James.

Research conducted by The Yankee Group and Accenture shows that: