Mahindra Comviva, the global provider of mobility solutions, assesses an upsurge in consumer churn due to low consumer engagement in Latin America especially Mexico.
With an in-depth understanding of Latin America market, Mahindra Comviva has drawn some key insights on customer churn. Basis a preliminary study taking into account customer churn percentage and assuming Subscriber Acquisition Cost (SAC) as USD 5.
Four leading MNOs in LATAM are facing challenging market conditions and revenue decline. The operators have suffered a total revenue loss of $30 billion due to customer churn.
The telecom industry is in a time of intense transformation with the market landscape changing due to rapid technology adoption, increasing use of smartphones and rising internet penetration. Telcos experience high subscriber churn rates due to network congestion and increasing competition from Over-The-Top (OTT) services.
As companies battle it out to gain market share, their key challenge is to curb losses by retaining existing customers and generating additional revenue from the retained customers. The other markets in LATAM facing highest revenue loss from churn are Brazil, Argentina, Mexico, Chile and Columbia.
Commenting on the current industry landscape, Amit Sanyal, Assistant VP & Head of Consumer Value Solutions at Mahindra Comviva said, “With the growing competition, it is crucial for operators to focus on innovative services and promotions to drive customer stickiness. Technology and Innovation are core to Mahindra Comviva’s strategy and as an industry expert, we understand the need to address the challenge of customer churn. Our Customer Value Management offerings will support operators to achieve customer retention and improved customer service goals by offering services to gain insight into vast amounts of data in real time.”
Increasing focus on Customer Experience Management coupled with Analytics driven marketing through actionable consumer behaviour insights would help Telecom operators improve customer engagement increase uptake of products and services plans to help enhance experience, usage & stickiness with the service provider.
Mahindra Comviva’s new cutting edge products embedded with prescriptive and predictive analytics will reward operators in LATAM with increased profitability. Actions driven by big data analytics are meant to enhance overall lifetime value of subscribers thus augmenting higher brand loyalty. Mahindra Comviva’s Revenue Plus Suite is an analytics driven, multi-channel contextual marketing platform which will empower telcos to roll out contextual, interactive and intelligent real time services. It enables them to design personalized tailor made services which will make them stand out in this highly cluttered market and deliver a highly differentiated, engaging and enriched customer journey.