7 ways to retain customers in the telecommunications field

In many sectors, including telecommunications, it is the digital world which has allowed consumers to set the bar higher; the average consumers today who are tech-savvy demand an accurate and immediate response, though they interact with organisations through various intermediaries they expect consistency across all touchpoints and most importantly a tailored service. For telecommunications companies, the change requires developing strategies for customer retention which are in order to meet the user expectations that have evolved. It is a time when simply providing traditional loyalty schemes and being reactive is not satisfactory anymore – telecoms have to innovate their business model through digital transformation, service personalisation and being more active.

This paper examines the issues faced during customer retention in the telecommunications field such as employing state of the art information and communication technologies in elevating customer affinity and minimising cost of customer acquisition while sustaining competition in an oversaturated market.

Where in one era hyper-personalisation was a competitive advantage, personalised offers have become a basic necessity, and mass marketing and generic offers are not entirely effective. One size doesn’t fit all anymore. As per a recent Epsilon research article released in 2024, 80% of consumers will prefer to conduct business with firms that provide them a personalised experience. Telecom operators can use Big Data analytics and AI to cater to their customers’ individual needs and purchasing behaviour while also improving loyalty and customer satisfaction.

Telecom operators can use predictive analytics to enhance service delivery and move from reactive support to more proactive support. Machine learning algorithms can analyse customer data surrounding customers to identify the risk of churn and employ strategic retention measures aimed at different customer segments.

The current day customer seeks to have an integrated experience with any service or product and for it to be a singular experience, whether off or online. McKinsey & Company, for example, illustrated the effectiveness of an omnichannel approach in business by aiding a regional bank to increase its sales of products by more than 25% within half a year. Such strategy integrated both the digital and conventional channels of the bank's operations which were directed towards providing the client with a storyline that was not complicated. The same applies to the telecom operators, who need to ultimately build an omnichannel engagement framework that delivers consistent and contextualised experiences for clients across all channels.

As society grows more digital, obtaining and more importantly, keeping the customer's attention is tougher than before. A strong case can be made through gamification, for it engages a basic human component, competition, achievement and recognition. Gartner predicts that in 2025, 70% of companies will make use of gamified technologies in at least one business application, highlighting its increasing relevance in attaining customer engagement. Ageing customers can be gamified by implementing tiered loyalty schemes which reward desired behaviours, increase a sense of belonging and ultimately increase customer lifetime worth. 

Emphasis on earning rewards or challenges for specified behaviours and actions which is desirable:  Let’s take an example where customers who advance the cause of the telecommunication company are also rewarded for it by the telecommunication company. For example, the customer is rewarded for paying bills on time with loyalty points or badges and feels more appreciated; telecommunication companies can reward all of their customers for such actions. Customers will earn points for completing such tasks and actions. Later on, these points can be used to receive various enticing rewards in return, including but not limited to having portions of their monthly bills written off, receiving extra data, being able to access premium content or get new mobile device on special personalised terms. This makes for an endless cycle of engagement where customers are utilising more of the telecommunications services and in turn, becoming loyal customers of the brand.

Enhanced tiered program for greater customer loyalty over time: To make customers loyal over the long run, it would be ideal if the telecommunication companies introduced a tiered loyalty program. Customers receive points and move-up levels, which means they are given better and better benefits. These might encompass preference to the customer service department, first access to new devices or promotions, and special events and even personalised offers that suit their interests. It does not only encourage them to be active, but creates a feeling of exclusiveness and appreciation which will build up the customer’s attachment towards the brand. 

Competition makes customers associated with a brand being a community:  Gamification can also help customers feel that they are part of a community. With the help of challenges or contests, or leaderboards, telecommunication companies stunningly can fuel competition and interaction. Just think how customers will try to be the first ones in accumulating points by finishing the most tasks or answering the most telecommunication related published quizzes. Not only engaging, but this helps in making the customers meet other customers, and speak out their experiences, helping create a platform, and love for the brand. Also, there comes a chance of connecting the gamified loyalty program with social media groups for the customers to communicate, share gaming tips, and comment.

For operators of telecommunications, it is safe to state that online communities/social media constitute a preservation tool, where feedback is received, certain issues are solved and a brand presence is created. Community or engagement has a high impact on the purchasing behaviour of the customers as evidenced by social media reports. For example the 2024 Sprout Social survey which reveals 91% of consumers believe social can connect people, and 78% want brands to use social to bring them together. Unlike partisan public figures, brands find themselves uniquely positioned to foster connections between people online.

In the current digital era, there is a category of customers who understand technology and wait for nothing, they understand the importance of being able to sort their issues themselves without having to endure long phone calls or unnecessarily waiting. The need for such self-service greatly resounds within a Forrester study, where a whopping 72% of customers mentioned that they would much rather self-serve as opposed to going through standard support. This makes strong self-service options not only a nice to have, but a must have if any modern telecom strategies are to have customer retention as a focus. Clients’ self-sufficiency abilities to resolve issues in a short time span can augment telcom satisfaction, reduce churn and cut occupancy within the customer service teams. 

To respond to the customers’ increasing urge for self-service, telecom companies should consider the following: 

1. Well managed knowledge bases and lists of frequently asked questions: 

2. Future AI-controlled support tools that will further simplify the troubleshooting process:

3. 24/7 support with AI-powered chatbots:

In order to remain competitive in a digital-first ecosystem with constant changes, telecom companies need to create processes of gathering and acting on customer feedback repeatedly. Adopting feedback cycle processes embeds iterative advancement in the institution, furthermore, i.e., this would ensure that the company evolves to meet the customer’s changing requirements and the quality of services offered does not drop.

In the world dominated by the internet, retaining customers is no longer a straightforward task, it requires a paradigm shift which is a versatile and research based strategy with the aim to centralise the client. This mindset change allows telecom operators to use different tools of digitalisation that turn every customer contact into a chance to strengthen loyalty, add value, and win in the competitive market. The evolution to success is through understanding the requirements of the customers, anticipating what they would need, and ensuring telecom operators provide suffi/cient support so that customers keep up with the pace of digital evolution.