LOYAL CUSTOMERS!!!!!

A TELECOM FAIRYTALE……?????

Ramneek Kaur
Preety Menon
GNIMT, Model Town
Ludhiana
Once upon a time………
CUSTOMER LOYALTY….

WHY BEING CONCERNED?

Researches have shown
• The typical company gets 65% of its business from its existing customers

• It costs 5 times more to find a new customer than to keep an existing

customer happy.

• It takes 12 good service experiences to overcome a single bad one

• 7 of 10 customers who switch to the competition do so because of poor

service.

• 91% of unhappy customers won’t buy again from the company that
displeased them

• And unhappy customers will not only defect, they will grumble to 9 of
their friends
OBJECTIVES OF THE STUDY
• To know customer loyalty scenario in telecom
sector.
• To know the factor affecting choice of a cellular
carrier.

RESEARCH METHODOLOGY
• An online study was conducted by sending e-mails
to 300 mobile users in India irrespective of the
brand and 245 responses were received.
 Summary of major findings of the study

1. 75% respondents were satisfied with their

present service provider.
2. 56% respondents said that given a better deal
and low switching costs, they would never mind
changing their service provider; this shows that
satisfaction no longer ensures loyalty.
3. Emotional bonding with the number, circulation
of the number and bonding with the company
are the top ranking factors that restrict the
change of connection.
4.
• Referrals by friends and colleagues
• Value added services
• Network coverage
• Price
• Brand image
are the factors considered most important while
selecting a cellular carrier
5. Only 23% customers said that they recommend
their service provider to their friends, family and
relatives.

6. 13% respondents said that they do not make any

recommendation and stay neutral.

7. An alarming 64% said that they distract the people

instead of making recommendation which is of
grave concern; referrals being ranked as the most
important factor.
.
Creating

Emotionally

Invested

Customers

The magic potion!!!!

• Build staff loyalty:

Only a loyal, happy and satisfied workforce

can ensure loyal, happy and satisfied
customers
• Practice the 80/20 rule:

All customers are not created equal. Some

represent more long-term value to the firm
than others.
Know the loyalty stages and ensure that the
customers are moving through them
• Solicit feedback

Most of the customers never

complain.Seeking feedback and
acting upon that is utmost
important.
• Aggressively seek out
customer complaints:

90% complaints are

unarticulated and manifest
themselves in many negative
ways: unpaid invoices, lack of
courtesy to the frontline
service reps and, above all,
negative word of mouth
• Keep in touch-Customers Expect a
Seamless Relationship.

Keeping in touch helps in developing

lasting bonds.The best businesses are those
that believe in going the extra mile for their
customers.
• Win the Right Customers Back :

 Figure out which customers you want back

 Find out why they left
 Fix the problem
 Invite them to return
• Use Exit Barriers, Carefully:

One way to give the business a chance to

respond is to make it difficult for customers
to leave
• Develop a customer database and use it.

Give employees easy access to customer

and prospect information so they can
treat them like part of the family
• Listen to Front-Line Staff

Service people are the first ones to hear

what bothers customers.
Wishing

Happily ever
after………