CSPs Face Customer Retention Problems

New research from Oracle outlines many of the challenges that service providers face in serving and retaining customers.

The study demonstrates that a lack of integration between departments and business systems is the main problem. The study, called “Fostering Customer Intimacy for Communications Service Providers in Europe and the Middle East,” was conducted by Vanson Bourne. It involved a survey of 46 senior customer management executives for various communications service providers and 3,750 consumers across Europe and the Middle East (EMEA).

In addition to the lack-of-integration issue, the research found:

• Two-thirds of CSPs (65 percent) admitted that customers are unable to resolve queries by calling just one number. The vast majority of CSPs’ systems leave them unable to effectively retain customers.
• More than three-quarters of CSPs (80 percent) currently do not have the systems and processes in place to identify and retain customers reaching the end of their contracts.
• More than half (53 percent) of consumers stated that their mobile providers had never contacted them at the end of their contract to entice them into a new one.
• The public indicated a clear preference for Web-based customer service, but CSPs are falling short in this area.
• Eighty-three percent of consumers chose the Internet as their first or second choice for communicating with their providers.
• Less than half of CSPs (46 percent) offer the ability to view account trends and money-saving tips online, while a mere 13 percent provide online support agents via instant messaging – two of consumers’ most desired features in an online channel.

“With technology and communications at the heart of their businesses, communications service providers want to be adept at capitalizing on new modes of delivering personalized service. The research shows, however, that the industry faces a number of challenges in delivering a seamless and consistent experience across its customer service channels,” said Bhaskar Gorti, senior vice president and general manager, Oracle Communications.