{"id":1133,"date":"2020-07-16T09:35:08","date_gmt":"2020-07-16T09:35:08","guid":{"rendered":"https:\/\/www.reloadly.com\/blog\/?p=1133"},"modified":"2021-10-05T11:17:39","modified_gmt":"2021-10-05T11:17:39","slug":"how-to-reduce-churn-in-the-telecom-industry","status":"publish","type":"post","link":"https:\/\/blog.reloadly.com\/blog\/how-to-reduce-churn-in-the-telecom-industry\/","title":{"rendered":"How to reduce churn in the telecom industry? Airtime APIs can help"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_46 ez-toc-wrap-left counter-hierarchy ez-toc-counter ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"ez-toc-toggle-icon-1\"><label for=\"item-69e91c16d1a70\" aria-label=\"Table of Content\"><span style=\"display: flex;align-items: center;width: 35px;height: 30px;justify-content: center;direction:ltr;\"><svg style=\"fill: #000000;color:#000000\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #000000;color:#000000\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/label><input  type=\"checkbox\" id=\"item-69e91c16d1a70\"><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-visibility-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/blog.reloadly.com\/blog\/how-to-reduce-churn-in-the-telecom-industry\/#The_Churn_Burn_Why_are_my_customers_leaving\" title=\"The Churn Burn: Why are my customers leaving?\">The Churn Burn: Why are my customers leaving?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/blog.reloadly.com\/blog\/how-to-reduce-churn-in-the-telecom-industry\/#How_to_Reduce_Churn_in_the_Telecom_Industry_While_Improving_Customer_Loyalty\" title=\"How to Reduce Churn in the Telecom Industry While Improving Customer Loyalty\">How to Reduce Churn in the Telecom Industry While Improving Customer Loyalty<\/a><ul class='ez-toc-list-level-3'><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/blog.reloadly.com\/blog\/how-to-reduce-churn-in-the-telecom-industry\/#1_Use_incentives_to_create_non-cash_mobile_rewards_programs\" title=\"1. Use incentives to create non-cash mobile rewards programs\">1. Use incentives to create non-cash mobile rewards programs<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/blog.reloadly.com\/blog\/how-to-reduce-churn-in-the-telecom-industry\/#Looking_at_how_to_reduce_churn_in_the_telecom_industry\" title=\"Looking at how to reduce churn in the telecom industry?\u00a0\">Looking at how to reduce churn in the telecom industry?\u00a0<\/a><\/li><\/ul><\/nav><\/div>\n<p><span style=\"font-weight: 400;\">There is an unavoidable question facing the mobile market today: How to reduce churn in the telecom industry? <\/span><\/p>\n<p><span style=\"font-weight: 400;\">The answer is multi-dimensional and requires developing customer retention strategies that interweave <\/span><b>incentive marketing, feedback channels <\/b><span style=\"font-weight: 400;\">and<\/span><b> airtime top-up software.\u00a0<\/b><\/p>\n<p><span style=\"font-weight: 400;\">Simply put, your churn rate can only be reduced with customer-centric marketing programs<\/span> <span style=\"font-weight: 400;\">that are <\/span><i><span style=\"font-weight: 400;\">specifically built for customer retention<\/span><\/i><span style=\"font-weight: 400;\">. Often, this effort is aided with the help of smart and scalable airtime API technology to retain subscriptions.\u00a0<\/span><\/p>\n<p><b>Placing such a large emphasis on customer retention shouldn\u2019t be surprising. <\/b><span style=\"font-weight: 400;\">Today, the pressure to create better customer experiences &#8212; as proven through the rise of CX\/UX marketing gurus &#8212; takes the center stage of all growth strategies applied by global mobile operators.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The telecom industry has traditionally experienced an <strong>average churn rate of 30% to 35%<\/strong>, while the cost per acquisition (CPA) typically ranges from five to 10 times higher than the cost of retaining an existing customer, according to the 2016 sector review <\/span><a href=\"https:\/\/books.google.es\/books?id=vzfVDQAAQBAJ&amp;pg=PA92&amp;lpg=PA92&amp;dq=telecom+it+costs+5+to+10+more+times+to+acquire+a+customer+than+to+retain+it&amp;source=bl&amp;ots=U3nat9l0FU&amp;sig=ACfU3U1ObhjBWUU-qLlY-UC7hujXHpf45Q&amp;hl=en&amp;sa=X&amp;ved=2ahUKEwjxoOOOjbvqAhWtzYUKHZoACkwQ6AEwCnoECAgQAQ#v=onepage&amp;q=telecom%20it%20costs%205%20to%2010%20more%20times%20to%20acquire%20a%20customer%20than%20to%20retain%20it&amp;f=false\"><i><span style=\"font-weight: 400;\">Big Data Applications in the Telecommunications Industry<\/span><\/i><\/a><span style=\"font-weight: 400;\">.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">It\u2019s a fact that makes for simple but stirring calculus.\u00a0<\/span><b>To sustain mobile subscription revenues, telecoms must focus more on reducing churn than they do on acquisition.\u00a0<\/b><\/p>\n<p><span style=\"font-weight: 400;\">The solution will inevitably include customer experiences that <\/span><b>build loyalty<\/b><span style=\"font-weight: 400;\">, thanks in large part to new, easily programmable and scalable airtime top-up API technology.\u00a0<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"The_Churn_Burn_Why_are_my_customers_leaving\"><\/span><span style=\"font-weight: 400;\">The Churn Burn: Why are my customers leaving?<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Today, traditional telecom brands often don\u2019t have the right tools to keep ahead of their churn rates.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">This churn burn is further compounded by the entrance of younger telecoms that are more adept at deploying new technologies. Their success proves that telecom customers are increasingly willing to leave legacy brands if service sucks.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">A recent Accenture poll concluded that<\/span><b> 77% of telecom customers are more <\/b><a href=\"https:\/\/www.accenture.com\/t20170216T035010Z__w__\/us-en\/_acnmedia\/PDF-43\/Accenture-Strategy-GCPR-Customer-Loyalty.pdf#zoom=50\"><b>likely to churn<\/b><\/a><b> compared to three years ago<\/b><span style=\"font-weight: 400;\">. At the heart of this churn is bad customer experience, which can now spread like wildfire across social media. Frustration can easily manifest in a global, digital and pervasive way.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Indeed, the impact of social media cannot be understated. Today, an unsatisfied customer has many more channels to distribute his\/her discontent about telecom services.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">This poor experience influences others in a wider digital community, which then leads to higher churn.<\/span><\/p>\n<p><b>Discovering how to reduce churn in the telecom industry becomes an even more difficult battle in emerging mobile markets<\/b><span style=\"font-weight: 400;\">, where prepaid customers can change their mobile operators<\/span> <span style=\"font-weight: 400;\">as fast and easy as switching a SIM card and top-up vendor.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In emerging markets, churn rates are thus much more important to study than in developed markets. Ignore your churn too much, and you\u2019ll end up hemorrhaging your revenue base.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Let\u2019s take a quick look at how prevalent prepaid subscriptions are around the world:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">In Africa, about 95% of mobile subscribers have a <\/span><a href=\"https:\/\/www.reloadly.com\/blog\/api-mobile-money\/#How%20is%20mobile%20money%20enabling%20prepaid%20customers%20in%20Africa?\"><span style=\"font-weight: 400;\">prepaid service<\/span><\/a><span style=\"font-weight: 400;\">, making it the largest non-contract telecom market in the world.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">In <\/span><a href=\"https:\/\/www.statista.com\/statistics\/218145\/prepaid-and-postpaid-mobile-subscribers-in-latin-america-by-country\/\"><span style=\"font-weight: 400;\">Latin America<\/span><\/a><span style=\"font-weight: 400;\">, the mobile market is also still largely dependent on prepaid, with Nicaragua having the highest percentage of prepaid mobile subscribers at 94%, and Chile the lowest rate of such clients with 57%.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">India and Southeast Asia are also prepaid-dominated mobile markets. Indeed, <\/span><a href=\"https:\/\/www.quora.com\/What-is-the-percentage-of-prepaid-users-in-India-as-of-2015\"><span style=\"font-weight: 400;\">India<\/span><\/a><span style=\"font-weight: 400;\">, the world\u2019s second-most populous nation, has a telecom market compared with the African continent &#8212; 95% of Indian mobile users are on prepaid plans.\u00a0<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">These above-listed regions combined put the majority of the world\u2019s mobile users into the prepaid column. Without any contract holding them back, customers can easily change mobile operators. This means they have little loyalty to brands, and bad experiences can spread more rapidly.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">This makes for a potent combination. <\/span><b>Therefore, the mobile sector in the emerging market must work exponentially harder <\/b><span style=\"font-weight: 400;\">than their developed-world counterparts if they want to retain their customers from fleeing to the waiting arms of the competition.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Below, we outline the best strategies for winning your mobile customers\u2019 hearts, by keeping it.\u00a0<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"How_to_Reduce_Churn_in_the_Telecom_Industry_While_Improving_Customer_Loyalty\"><\/span><span style=\"font-weight: 400;\">How to Reduce Churn in the Telecom Industry While Improving Customer Loyalty<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h3><span class=\"ez-toc-section\" id=\"1_Use_incentives_to_create_non-cash_mobile_rewards_programs\"><\/span><b>1. Use incentives to create non-cash mobile rewards programs<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Incentive marketing in the form of mobile airtime and data rewards is today widely used by telecom marketing managers to <\/span><a href=\"https:\/\/www.marketingdive.com\/press-release\/20190716-blackhawk-network-study-consumer-reward-programs-deepen-engagement-and-bui-1\/\"><span style=\"font-weight: 400;\">\u201ccreate customer loyalty,\u201d<\/span><\/a><span style=\"font-weight: 400;\"> a 2019 BlackHawk network study found. This is especially true in emerging telecom markets, where prepaid reigns supreme and brand loyalty does not.\u00a0<\/span><\/p>\n<p><b>In prepaid telecom markets, mobile incentives are thus more important than brand identity.\u00a0<\/b><\/p>\n<p><span style=\"font-weight: 400;\">This is precisely why in emerging markets in Africa, Latin America and Southeast Asia, mobile rewards have become the most important weapon to reduce churn in the telecom industry.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u201cThe reward of staying with a network or upgrading of contracts has worked well in the telecoms industry,\u201d says Debbie Ghillino, Chief Happiness Officer of <\/span><a href=\"https:\/\/www.theincentivecompany.co.za\/\"><span style=\"font-weight: 400;\">The Incentive Company<\/span><\/a><span style=\"font-weight: 400;\">, a full-service incentive house in South Africa.\u00a0 \u201cBy rewarding a customer\u2019s loyalty, the company can retain customers, which is their largest challenge.\u201d<\/span><\/p>\n<p><i><span style=\"font-weight: 400;\">[Read our entire coverage about the impact of <\/span><\/i><a href=\"https:\/\/www.reloadly.com\/blog\/incentive-marketing-telecom\/#Universal%20desire%20to%20reduce%20churn%20through%20loyalty\"><i><span style=\"font-weight: 400;\">incentive marketing<\/span><\/i><\/a><i><span style=\"font-weight: 400;\"> on the emerging market telecom industry on the Reloadly blog.]<\/span><\/i><\/p>\n<p><span style=\"font-weight: 400;\">These days, however, it is tempting to consider non-cash mobile rewards strategies as a matter of \u201cgiveaways\u201d and \u201cfreebies.\u201d But this mindset would mislead you.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u201cDriving loyalty isn\u2019t necessarily about giving out the most points or the largest gift card; it\u2019s about ensuring resellers feel valued, appreciated, and confident in the company, and of course, rewarded for their sale,\u201d says Lincoln Smith, Chief Strategy Officer of <\/span><a href=\"https:\/\/www.hmiaward.com\/\"><span style=\"font-weight: 400;\">HMI Performance Incentives<\/span><\/a><span style=\"font-weight: 400;\">, a Massachusetts-based incentive solutions company.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">This means that customer retention is about building a relationship with your customer and, in the case of resellers, your entire network. Incentives can help provide talking points from which to build this long-term communication, while new API technology, like the airtime API platform provided by Reloadly, can make it easy to transparently share profits with your resellers.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">However, when it comes to distributing these rewards programs across your network, <\/span><b>ensuring your incentives reach customers in disparate geographies using different currencies and mobile operators is a big challenge.\u00a0<\/b><\/p>\n<p><span style=\"font-weight: 400;\">This is where an API can be useful, once again. Reloadly\u2019s airtime top-up API helps solve this problem by allowing you to access a global network of over 500 mobile operators in one platform.\u00a0<\/span><\/p>\n<p><i><span style=\"font-weight: 400;\">Using Reloadly\u2019s API, you can now send <\/span><\/i><a href=\"https:\/\/www.reloadly.com\/mobile-rewards\"><i><span style=\"font-weight: 400;\">mobile rewards<\/span><\/i><\/a><i><span style=\"font-weight: 400;\"> in your local currency of choice, easily organize your <\/span><\/i><a href=\"https:\/\/www.youtube.com\/watch?v=3SANU9-OFOA\"><i><span style=\"font-weight: 400;\">network of resellers<\/span><\/i><\/a><i><span style=\"font-weight: 400;\"> to share profits, and enable bulk transactions with top-up values starting from just $0.50.\u00a0<\/span><\/i><\/p>\n<p><b>2. Constantly answer customer feedback on all channels. Especially social media<\/b><\/p>\n<p><span style=\"font-weight: 400;\">The truth is that &#8212; even in prepaid-based markets &#8212; churn does not happen suddenly. There is a journey that your customer goes through that eventually leads them to finally make the switch.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">This is the dissatisfaction journey &#8212; basically, the unwinding of the buyer\/sales funnel journey.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">First, your customer has a bad experience. Maybe they ignore it or complain.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Then, they\u2019ll make a more drastic move. The customer will write on a forum or social media, either directly to your brand or to the public.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Smart brands have learned how to control this part of the conversation. By hiring a social media team to constantly monitor and address issues, you can reduce churn in the telecom industry.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Don\u2019t have the budget for a dedicated social media team? Chatbots are increasingly getting smarter and can help provide crucial interaction at this phase of the dissatisfaction journey.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">One thing is for sure: If nothing is done, a poor ability to answer your customer\u2019s complaints can lead to a domino effect of negative fallout.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Once a bad customer experience gets viral, you can say bye, bye to your brand equity.\u00a0<\/span><\/p>\n<p><b>3. Anticipate churn by investing in better technology\u00a0<\/b><\/p>\n<p><span style=\"font-weight: 400;\">Telecom customer churn is an inevitable fact of the industry. But you do not have to kowtow to the churn burn. Instead, anticipate that churn happens and that investments in new technology can provide better airtime top-up experiences.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Today, there are powerful analytics and insights tools that can help you predict customer behavior and predict churn. Using this data, you can then map out your best-case scenario strategy to reduce churn and boost profitability.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In emerging telecom markets, it helps to understand the unique economy of each nation. By truly getting a grasp of the on-the-ground market, you can better anticipate churn by offering features that encourage retention.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">For example, Venezuela and Argentina have the world\u2019s most volatile currencies &#8212; the Venezuelan bolivar and Argentinian peso, respectively. This means that the ability to hold <\/span><a href=\"https:\/\/www.reloadly.com\/products\/airtime\"><span style=\"font-weight: 400;\">airtime credit<\/span><\/a><span style=\"font-weight: 400;\"> is an incredibly appealing sales proposition because the e-wallet where their international credit is stored will be less volatile than their country\u2019s central bank.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In this way, you have provided a means to use <\/span><a href=\"https:\/\/www.reloadly.com\/blog\/incentive-marketing-telecom\/#Use%20of%20airtime%20credit%20and%20data%20as%20currency\"><span style=\"font-weight: 400;\">airtime and data as a currency<\/span><\/a><span style=\"font-weight: 400;\">.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">By knowing and testing the market like this, you could outshine the competition and create a customer base that would love your product for its convenience, versatility and cost-effectiveness.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">With Reloadly\u2019s airtime API, you can send airtime and data bundles to over 160 countries in the world. (This includes Venezuela and Argentina, by the way).\u00a0<\/span><\/p>\n<p><i><span style=\"font-weight: 400;\">[Read more about how <\/span><\/i><a href=\"https:\/\/www.reloadly.com\/blog\/how-airtime-is-used-as-money\/\"><i><span style=\"font-weight: 400;\">airtime is used as money<\/span><\/i><\/a><i><span style=\"font-weight: 400;\"> on our blog.]\u00a0<\/span><\/i><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Looking_at_how_to_reduce_churn_in_the_telecom_industry\"><\/span><span style=\"font-weight: 400;\">Looking at how to reduce churn in the telecom industry?\u00a0<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Now you have some sound advice to reduce churn. To take things to the next level, contact a <\/span><span style=\"font-weight: 400;\">Reloadly<\/span><span style=\"font-weight: 400;\"> airtime top-up <a href=\"mailto:hello@reloadly.com\">API specialist<\/a> today.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Reducing churn in the telecom industry can be done by introducing new incentive marketing strategies. <\/p>\n","protected":false},"author":13,"featured_media":1134,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[168],"tags":[145,197,198,170],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v15.7 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Want To Reduce Churn In The Telecom industry? APIs Can Help | Reloadly<\/title>\n<meta name=\"description\" content=\"Looking to reduce churn in the telecom industry? 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