| When the number of service providers are | | | | quickly migrate. |
| increasing and government regulations increasingly | | | | Added with this, the telecom companies are |
| tightening, it's becoming difficult for the telecom | | | | witnessing falling ARPU (average revenue per |
| companies to retain customers. Added with | | | | user). It looks like subprime lending, where an |
| introduction of mobile number portability (MNP) it | | | | economically poor customer like (milkman, washer |
| will be more difficult for the telecom service | | | | man, vegetable vendor, rikshawala, loaders etc;) is |
| providers to retain customers. The external | | | | given connection without understanding the long |
| environment; social, political, economical and | | | | term customer profitability to the company. Here |
| technological changes are happening faster than | | | | a customer takes a connection but makes |
| ever. There are new products, services and new | | | | restricted calls added to this the price is cheaper |
| tariffs in the market every two weeks and the | | | | per call. In this situation, though the customer |
| customers are getting confused faster than ever. | | | | base is huge they fail to take ARPU higher. The |
| In this confusion there are many customers who | | | | huge customer base itself is economically weaker |
| change their service providers rapidly. | | | | just like subprime customers in the banking |
| Lets look at why a customer leave a service | | | | industry. |
| over the other service provider? The main reason | | | | Where does knowledge management fit in for the |
| is price, the more lucrative the price offer the | | | | telecom companies? Earlier companies were trying |
| more chances prevail that customers would leave | | | | to collect, capture, replicate enterprise, employee |
| a connection. It's noticed that 60-80% of the | | | | and business knowledge capital. However, now |
| customers leave due to lesser tariffs. | | | | that customer is the prime asset, companies are |
| The second main reason is the kind of customer | | | | trying hard to capture the customer data. Though |
| service provided and how customer is treated by | | | | there are business intelligence tools, one |
| the customer support personnel. Many a times | | | | department uses one tool the other another. |
| when a complain is raised they are not resolved | | | | Whereas knowledge management can be applied |
| within expected time and customers services | | | | through out enterprise through streamlined |
| representatives are not able to meet the demand | | | | processes facing customer services area like |
| and expectations of the customer issue, they just | | | | billing, fault repair, new campaigns, complaints, self |
| try to close the issue rather than solve it. Hence | | | | service, cross sell and up sell. When knowledge |
| in frustration customer migrate to other service | | | | management processes are aligned with the |
| provider where customer services are better and | | | | customer processes, companies would be able to |
| they are listened carefully. Here frustration is the | | | | understand the customer better and know the |
| primary cause of churn. | | | | customer lifestyle and behavior in a more |
| The third main reason of customer jump to | | | | meaningful way. Once the company understands |
| another service provider is the quality of service | | | | the customer better it would be able to serve it |
| being provided, for example if there is lot of | | | | better. In the scenario of better service |
| network disturbances and call drops, a customer | | | | customers will remain with the service provider |
| would get irritated and look for better service | | | | for long. Knowledge management will also allow |
| providers which can give disturbance free service. | | | | companies to provide personalized services to the |
| People would go for better quality. | | | | customers, as needs and wants of customers |
| The fourth main reason for the customer churn is | | | | differ from one customer to another. |
| the changing technology, the next generation is | | | | If companies fail to capture the customer data |
| knowledgeable and fast moving with the trend, | | | | through knowledge management processes, they |
| they have economic power and want to posses | | | | would fail to get into the lives of customers and |
| newest and latest features, which can provide | | | | hence fail to provide services suitable to them. |
| them the whole world of features in their mobile. | | | | The wrong services and messages would only |
| The moment they find that there is something | | | | enhance frustration and churn. |
| more in another service provider's features they | | | | |