CUSTOMER RETENTION STRATEGIES

Memory Ndoro-Mandiya
Marketing & Sales Director
NetOne Celllar !"#t$ %td
1
"ersonal CRM &ondation
We strve to deght our customers so
that they w never thnk of eavng
us...unt death do us part. Memory
Ndoro-Mandya
Cstomer Retention Strategies O#er#ie'

Keepng your customers from gong to your compettors. (Beng

possessve of your customers)

A cose bond between subscrber and operator s cmate

enough for ncreased and sustanabe operator revenue
generaton as we as mproved customer satsfacton.

Budng reatonshps wth your corporate cents, ndvduas,

government and wder spectrum of customers.{Recognsng
Dversty)

Zmbabwean teecoms andscape s hghy compettve. One

cannot operate wthout any promoton for customer retenton.
3
Some (ig)lig)ts in *im+a+'e,s
Telecoms

Fastest growng ndustry recoverng from the ost

decade.

Increased nvestments towards broadband servces

supported by optc fbre networks.

OTT payers have eroded teecoms revenue.

Increasng nternet penetraton, currenty at 31%,

we above the regona average of 13%.
(Source- POTRAZ)

Ths acceerated growth n the ndustry was aso

acheved as MNOs prepare for the hostng of
(UNWTO) Genera Assemby from 24-31 Aug 2013.
S+scri+er Data recorded -.
./01
Ser#ice Total S+scri+ers "enetration Ratio
Mobe Voce 10 914 770 86.6%
Data and Internet 3 266 411 31%
Fxed Voce 346 211 2.75%
(Source- POTRAZ)
Telecoms Indstry Using
"orter,s 2 &orces
NetOne 3ackgrond

GSM Mobe Teecoms Company

Launched 1996

Whoy owned by the Government

Other operators are prvate owned

Offers broadband,

Prepad roamng wth MTN n SA

Under 2.5mon subscrbers

Popuaton of Zmbabwe 12mon

Has a fuy fedged CRM network

NetOne S+scri+er Mi4

NetOne adopted a wordwde trend n ts subscrber mx:

o
90% and 10% of Prepad and Post Pad respectvey

A consderabe share of the post pad market. The argest

n Zmbabwe.

Most strateges are geared towards prepad market

NetOne has adopted a 360degree vew of customers,

accessbe through a contact centre, webste, deaershp
network, post offces, reta outets, mobe kosks,
franchse outets and street vendors
8
%i5e Cycle Stages
A customer has life cycle stages
06 Contact
")ase
Gan new subscrbers through CRM,
and provdng choce
.6 Ac7isition
")ase
16 Retention
")ase
86 %oyalty
")ase
Bud a database of customers
through market segmentaton-
Understandng Needs.
Keepng your customers from gong
to your competton (Beng
possessve of your customers)
Degree of devoton/emotona
attachment/fathfuness to a product
whch strengthens the brand and
the consumer
2As to'ards Addressing
S+scri+er Needs
i6 Ac7isition9

bud customer database of subscrbers

through Management Informaton Systems
(MIS)

understand ther purchase condtons

offer them post-purchase reassurance

promote the prce-vaue reatonshp

estabsh the foundaton for a ong-term

reatonshp

know the assocated costs 10

2As !cont$
ii6 A#aila+ility9

products and servces 24/7, 365

nnovatve products and VAS

network quaty

targeted market segments

Responsbe Busness
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iii6 Accessi+ility9
broad and vared dstrbuton network,
network coverage,
24/7/365 Ca Centre.
customer touch ponts such as onne, sef
servce, shops, reta dstrbuton chan,
franchse outets etc
subscrbers need to bud confdence n a
network by easy accessng the customer
touch ponts.
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2As !cont$
i#6 A55orda+ility9

vaue for money

segment and package based prcng

*Ths s a key retenton pont
#6 Attaina+ility9

mpementaton and montorng of pans

technoogy and human capta. There

must be a feedback oop between
servce provder and consumer
2As !cont$
Dollar a Day "romotion-:iral Cam;aign 0
O+<ecti#es
Customer retenton
Subscrber acquston
Revenue growth
Reduce nterconnecton costs
The cost of attracting a new customer is said
to be 6 times the cost of retaining an existing
customer. (Kotler: 1997)
"romotion Mec)anics

Launched the Doar a Day Promo on 1 |uy

2012 whch st remans the ker promoton.

Recharge wth $1 and get 1MB free data

"%US 1hour free tak tme on-net cas from
tme of recharge unt 1800hrs same day
"%US free net cas From 1801hrs to 0600hrs
the next day

$5 recharge partcpated n gvng 2 times

the above benefts
"romo Im;act

After the frst month NetOne recorded a 30%

revenue coecton growth.

New SIM card saes shot up 245% from a prevous

monthy average of 35K to 123K n August 2012

Prepad ARPU grew to $5 from $3

Massve apprecaton of the promoton was recorded

from our customers on soca meda, rado, oca
press and through Ca Centre.

Promo has snce evoved nto a package

"romo Im;act !Cont$
Reduced churn
Increase n subscrber base
Increased revenue
Renewed market confdence n the
brand
Increased traffc n customer touch
ponts
Reduced nterconnecton costs
DAS( &OR CAS(- :iral Cam;aign .
O+<ecti#es
Revenue growth from SMS
Generate exctement wthn the
brand
Acquston strategy
- cash przes
Retenton
Promoton ntay ran from 10 |une
to 10 September 2012.
"romo Im;act
3 mon SMSes n 3 months
Grand prze of ZAR 232 500
($25k)
Cas) "ri=es

Up to ZAR
24 000
($2.5k)
weeky
przes

Up to ZAR
46 500
($5k)
monthy
przes
Social Res;onsi+ility
Dis+rsements
NetOne C)arity S)ield
The NetOne Charty Shed s a 3 year
partnershp wth the oca PSL.
NetOne poneered team seecton
from subscrbers va SMS to seect
the four teams that batted t out for
the tte.
Retention ;)ase
To reca;

Create ong-term, commtted and oya

customers.

Deveop a servce phosophy.

Increase the responsveness to customers.

Identfy goba trends whch have an mpact on

your customers and cose servce gaps.

Measure customer satsfacton.

Reward postve customer behavour.

Know your retenton-reated costs.

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..see you at the UNWTO General Assembly August 2013 at the Zimbabwean side .........!e There