Telcos Hike Marketing and Sales Spend, To Retain Subscriber Base

by Lingraj Sahu

Vodafone Idea along with other Telcos has been experiencing a continuous increase in costs related to marketing, content, customer acquisition, and service for a considerable period of time.

In today’s world, telecommunication is an essential part of our lives. From staying in touch with loved ones to conducting business, we rely heavily on our mobile phones, internet connections, and other telecommunication services. With this increasing reliance on telecommunications, it comes as no surprise that competition between telecommunication companies is at an all-time high. One of the main strategies employed by telcos to maintain their competitive edge is to retain their subscribers. And to achieve this goal, these companies have been increasing their marketing and sales spending.

A recent report published by the Global System for Mobile Communications Association (GSMA) revealed that the average cost of acquiring a new mobile customer is around $200. On the other hand, retaining an existing customer can cost around $50. This significant difference in cost is the reason why telcos have been increasing their marketing and sales spending. By retaining their existing customers, these companies can save a considerable amount of money on customer acquisition costs.

Furthermore, the report also highlighted that retaining customers is crucial for telcos in terms of revenue generation. According to the report, a 5% increase in customer retention can increase a telco’s profitability by as much as 75%. This finding is particularly important as telcos face increasing competition from over-the-top (OTT) services like WhatsApp and Skype, which offer communication services over the internet.

To retain subscribers, telcos have been using various marketing and sales strategies. One of the most effective strategies is offering loyalty programs to their customers. These programs can include discounts on services, freebies, or access to exclusive content. For example, telcos can offer free access to popular video streaming services like Netflix or Amazon Prime Video as part of their loyalty programs. Such programs can help retain customers and encourage them to upgrade their service packages.

Another strategy employed by telcos is improving their customer service. Providing customers with quick and efficient support can help build trust and loyalty. For instance, telcos can use chatbots or virtual assistants to help customers resolve their issues faster. In addition, providing customer service through multiple channels, such as email, phone, and social media, can also improve customer satisfaction.

Moreover, telcos have been focusing on providing value-added services to their customers. For example, telcos can offer cybersecurity services, such as antivirus software or virtual private networks (VPNs), to their customers as an added benefit. This can help differentiate their service packages from their competitors and provide customers with added value.

To promote their marketing and sales efforts, telcos have also been using various advertising channels. Digital advertising has become increasingly popular, with telcos using social media platforms like Facebook, Instagram, and Twitter to reach their target audiences. Telcos have also been using programmatic advertising, which uses artificial intelligence to optimize ad placements and target audiences more effectively.

In addition to digital advertising, telcos have also been using traditional advertising channels like television, radio, and print media. These channels are still effective in reaching a broad audience, particularly in regions with limited access to the internet.

In conclusion, to retain subscribers, telcos have been increasing their marketing and sales spending. By retaining customers, telcos can save on customer acquisition costs and increase profitability. To achieve this goal, telcos have been using various strategies, including loyalty programs, improved customer service, value-added services, and targeted advertising. With increasing competition from OTT services, telcos must continue to innovate and adapt to retain their subscribers and remain competitive in the market.

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