PAC. STAC. INFO – How to extract value and retain customers
From July 2019, Mobile Switching regulation meant that customers can change their providers by simply sending a text rather than the cumbersome process that was previously in place. The second biggest hurdle Ofcom wanted to overcome as part of this regulation was to ban network providers from double charging customers post the switch date.
This blog of mine looks at how telecom companies can extract value from these new short codes and retain customers. Let's first look at these terms.
PAC – Customers who want to switch and keep their number, can text ‘PAC’ to 65075 to their existing provider to get the ‘port authorisation code’, which they can then give to their new provider. The losing provider will respond by text within a minute. They will send the customers switching code (PAC), which will be valid for 30 days. The provider’s reply must also include important information about any early termination charges or pay-as-you-go credit balances.
STAC – Customers who want to switch but do not want to keep their number can text ‘STAC’ 75075 to their existing providers. STAC means – Service Termination Authorisation Code. The rest of the process is same as above.
INFO – Customers can text ‘INFO’ to 85075 if they are unsure of their ‘in contract’ status and any early termination charges that they may need to pay.
Of the 3 text codes above, the main benefit of the data analysis on customer retention comes from the last code, ‘INFO’. Customers requesting ‘INFO’ need not necessarily follow up contacting their provider with a ‘PAC’ or ‘STAC’ request. However, if a customer IS thinking of switching and unsure of the details, then INFO may be the first step. Analysis of a customer’s data, like their current MRC (Monthly Recurring Charge), their current offering (voice minutes, number of texts and amount of data), and their usage both in and out allowance along with the status of their contract, the length of contract period remaining and the amount of ETC’s (Early Termination Charges) to be paid can be used to traffic light a customer’s choice to switch. Based on this traffic light system, a telecoms firm may then be able to offer the customers on red more incentive packages as their contract period closes in. This targeted offering helps to retain customers and reduce churn.
The next code that could give insights into a customer’s choice to switch would be the ‘PAC’ code. The insights won’t help with the customers who have already requested to move, but those whose profiles are like the ones who have requested to move and what could be done to retain them. In this case, clubbed with all the data described for ‘INFO’, one must also consider the offerings in place from the competitors as a base for the analysis. This enables the losing providers to reach out to customers whose profile is similar and offer attractive offerings to retain and reduce churn.
In both the scenarios, the mission for the losing or about to lose provider is to leverage assets to offer tailor made products to the customer at a faster and better price than the competitor, to persuade the customer to stick around for a while. Remember that in the auto switching process, losing providers may not be contacted at all so being a step ahead of the customer with lucrative offers and products will help to retain the customer.
Part2 of Ofcom blog is here
We all like to retain our customers and keep them happy, so analysing a customer behaviour is a crucial step towards a long lasting and happy relationship .
About the Author: Sarbani is Managing Director of ei²® a consultancy specialising in #data #insights #performance