Comprehensive solution suite to help improve customer loyalty, increase revenue growth opportunities and retain the most profitable customer relationships while reducing retention spend.
As the global economy emerges from the downturn, communications service providers are putting in place a new growth and innovation agenda. Pressure is intensifying to drive subscriber growth, reduce churn and increase value per subscriber more efficiently and effectively. Yet pursuing top-line growth through customer acquisition will be a major challenge as traditional products mature, markets become increasingly penetrated and competition intensifies. Convergent offers and multi-product bundling are difficult to design and manage, and costly to bring to market. The costs of retaining customers are rising, yet one traditional truth remains: It is less expensive and more profitable to grow the business with existing customers than to attract new ones.
For this reason, many service providers are seeking to improve their capabilities in the area of customer lifecycle management. This business capability looks to more effectively manage all the customer touch points during the entire lifecycle of the relationship with the customer. How Accenture can help The Accenture Customer Lifecycle Management offering is a comprehensive suite of analytics tools, methodologies and implementation services, as well as market-leading outsourcing capabilities. Our solutions and services can help enable chief marketing officers to improve customer loyalty, increase revenue growth opportunities and retain their most profitable customer relationships while reducing retention spend. This Accenture offering focuses on the enablement of several key capabilities: • New customer acquisition: We help our clients design and price offers to grow their share of profitable new subscribers and to better penetrate new markets, geographies and customer segments. • Growth and retention of the customer base: Accenture can help enable service providers to attain deeper insights into their customers, proactively manage customer satisfaction and target growth and retention offers to grow the value of the customer base.
A key component of our offering is our marketing acquisition and retention services. Our assets and resources in this area help communications companies improve their demand generation strategies, which in turn help enable them to grow their customer base and improve customer retention by enabling a more targeted customer experience. We also help our clients understand at a more detailed level where they are investing in marketing execution and how those investments can be reallocated to reengineer the marketing process and drive improved returns. A number of innovative and market-tested assets support our work in this area. For example, we have developed tools for customer lifetime value segmentation and for improving the customer experience. We also offer pricing solutions and marketing diagnostics. Based on our experience with clients, Accenture’s customer lifecycle management offering can deliver a range of potential measurable benefits:
We also worked with an Asian communications provider on an innovative precision targeting solution to cut costs while helping to reduce customer churn. The program included churn risk assessment, customer value optimization and an offer rule engine. Based on this work, the company reduced churn 40 percent, realized a 15 percent reduction in retention costs and generated US$36 million in additional earnings per year. For a major European provider, Accenture implemented a market-leading decision management solution to deliver outbound batch and real-time inbound “next-best activity” decisioning consistently across all customer-facing processes and channels. The company has realized an increase of approximately US$3 million (£2 million) in gross operating margin per month through an increased retention rate, decreased retention spend and reduced dilution spend.