Mobile Number Portability and Customer Retention: Rohit Kumar Sarang Sarthak Parnami Satya Prakash

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Mobile Number Portability and Customer Retention

Rohit Kumar Sarang Sarthak Parnami Satya Prakash

What is Mobile Number Portability?


Without Mobile Number Portability, consumers are forced to change their number if they change service providers A fundamental

barrier for new entrants


Research conducted by the Singapore regulator in 2005 indicated that

64% of consumers considered it critical to keep their number when switching mobile service providers
A 2005 survey in Canada found that 80% of mobile

subscribers want the option to keep their number

Some Highlights in Indian Context


Mobile Subscribers in India : 874.68 Million Active mobile subscribers is 70% at 588.13 Million
Idea leads with 92.33% active users. MTNL has 34.39% active.
Mobile Number Portability (MNP) requests increase from 8.54Mn subscribers at the end of April 2011 to 10.57Mn subscribers at the end of May 2011 More than 60 countries have already adopted Mobile Number Portability

India will be 8th country in Asia to launch MNP

Reasons why customers switch operators


47 18 11
Subscription Plan Price
Free Goodies/ Headphones Rewards Customer Service Offers/Promotions Brand Image Bundled Services IDD Services Auto-Roaming Billing Others

Factors (%age)

9 9 8 6
3 3 3 1

10

20

30

40

50

Two Weeks after MNP Launch


(31st January ,2011)
Top Gainers In Mobile Number Portability Net Operator Port-In Port-Out Gain
Vodafone Idea Cellular Aircel Airtel Tata Tele GSM 94747 74978 36650 77240 41448 44041 43011 14574 60970 25360

Top Losers In Mobile Number Portability PortOperator Port-In Out Net Gain
BSNL Reliance Tata Tele CDMA 13522 1664 1573 343 61315 35663 26251 23264

50706 31967 22076 16270 16088

-47,793 -33, 999 -24,678 -22,921

Reliance CDMA

AdWords CPC and AdSense CPC for Mobile related keywords went up 200 % with the launch of MNP in India

Major Telecom Providers In India and prevailing scenario


Bharti Airtel - Neutral
Market leader and Most popular among the high spending group Least competitive tariff plans but it offers wide range of VAS 90% penetration in rural India Pricing competition and innovation to play the major role

Idea - Negative
No unique services Innovative adverting and focus on 3G services Follower in the GSM space

Reliance Communication - Positive


Leader in the CDMA telecom services Presence in GSM segment as well Best available tariff plans after TATA Tele services Most popular telecom operator in rural areas

Contd..
MTNL Positive
First one to launch 3G technology MNP implementation will turnaround the company as 3G demanding customer switch to the MTNL

TTML - Positive
Ranked No. 1 in the overall customer satisfaction (by TRAI) Most popular in less spending subscribers group Tata DoCoMo becoming popular TTS offers cheapest plans in India Existing customer is less likely to switch as company is providing competitive plans and likely to offer value added services.

The Defenders: Airtel and Vodafoneoperator = Biggest Risk AIRTEL : Largest


Providing more value to existing customers through "My Airtel My Offer "Start Stop The "My Airtel My Offer"

Customised services suited to individual requirements Based on the customers' past usage, current recharge behavior and VAS preferences

VODAFONE
Focus on Value Added Services through the Zoo Zoo campaign Wide variety of VAS Voice SMS Fashion Tips Dating Tips Phonebook backups Innovative Advertising and Brand Image building through VAS

Customer Engagement and Retention


Customer Engagement = Retention strategy There are a few dos for a strong customer engagement strategy: Focused Value Added Services
It is imperative that the service provider builds a system that studies individual subscribers at a granular level Ensure customization of offerings with continued and tangible value to the user.

Technology:
Systems and Data: Revisit information you have on your customers Scalable and Updated Databases System to unobtrusively collect and validate information Customer information systems are integrated to provide marketers a singleview.

Customer Engagement and Retention


Insights
Create analytics-driven, actionable consumer insights. Use call behavior, past interactions with the company and basic transaction data as the source. Customer focus intent Contd.

Consumer Awareness
Educate your customers and empower customer decisions that are best suited for him/her in the long run

Personalize:
Customize interaction at every possible touch-point Be it an SMS, an electronic mailer, an outbound call or a visit to website Every interaction has to be meaningful. The right offer at the right time through the right channel

Impact of MNP on Mobile Operators


Benefits
It increases competition by allowing consumers to switch service providers, giving a chance for new players to compete Fair chance to all the service providers It can bring consolidation to the industry and higher level of maturity

Drawbacks
Increase in attrition rate Increases price competition High pressure on margins as marketing and sales costs could increase Increasing costs on improving Quality of Service as a way to keep customers satisfied

Impact of MNP on End users


Benefits
Free mobility from one service provider to another, without losing their mobile number Attractive offering either for retention or change Player will have a higher pressure on enhancing their offering and quality of service

Drawbacks
Depending the regulation porting charges can be expensive for low ARPU segments Often, waiting time is too long and the process can be complex resulting in a lot of hazzle for end users

Thank You

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