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Value vs. Volume: Carving Out a Systematic Path to Profitability

An investigation into how data can help to define and transform telecom customer base value

 

The world of telecoms is almost unrecognisable today compared to twenty years ago. That change has accelerated even more dramatically in recent years. From the pandemic putting additional pressure on the need for connectivity, to increased market saturation as newer entrants enter the marketplace, and a seemingly constant stream of mergers and acquisitions, the telecoms landscape is in a constant state of flux.

The continued commodification of many traditional services – such as broadband, text, voice and data – has put added pressure on providers to transform and add value through content and add-ons. At the same time, changes in regulation have made it easier to switch providers, increasing customer churn and forcing many providers into profit- destroying price wars.

Against this backdrop, it is harder than ever to carve a path to profitability. This is driving a shift in mindset towards the need to grow base value, as opposed to just growing the base. This subtle but fundamental change is helping many operators to plug revenue gaps, reduce churn and increase ROI. However, a fundamental lack of understanding around customer value management, and failure to take a systematic approach, is holding telecoms organisations back from being truly value-driven.

To build a better understanding of these issues, we surveyed 200 professionals with responsibility for customer value base management from across the USA, UK and rest of Europe to gain insights into how far along this journey from volume to value they are.

LEARN MORE ABOUT CUSTOMER LIFETIME VALUE IN TELECOMS


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