Successfully managing the customer experience is essential in order to win and retain customers.
This is particularly true for emerging-market economies, where more and more businesses are seeking to remain competitive by attracting new customers, while retaining existing customers, says Tanja Ferreira, head of customer solutions at KPMG.
Ferreira's comments are based on the findings of a "mystery shopping" survey by KPMG, which focused on the $770 billion global prepaid market. The aim of the study was to learn how mobile operators across the world are performing in the area of customer experience.
The study was conducted across 106 providers of prepaid mobile services in 25 countries - including SA, Nigeria and Kenya - and multiple channels across the value chain. According to the study, African market challenges are unlike those experienced in other regions - one of the biggest differences being the prevalence of prepaid offerings over contract services.
This means that top-up transactions most commonly occur at retail stores, ATMs and kiosks, rather than via the mobile operator's branded retail store or call centre. Also, the study found that not all operators in Africa offer an online top-up service, which influences top-up preferences.
"While operators in Africa have found more innovative ways of taking SIMs and top-ups to the market through informal channels, this means there are fewer direct points of contact at which to manage the complete customer experience," notes Johan Smith, head of KPMG's Africa telecommunications group.
"The survey highlighted that customers also associate their experience of going through the informal channels with the brand of the mobile operator - the onus is then on the operator to invest in broader programmes focused on driving consistency in the customer's experience with the brand, its products and services, regardless of the channel being used."
According to Smith, one of the first interactions customers have with an operator is registering their SIMs, which is commonly categorised by long queues, a lack of product knowledge and complex pricing plans. In SA, prepaid SIM cards make up about 80% of the mobile market, says Ferreira. The first interaction a South African customer has with the operator is during the RICA SIM card registration process, which is often a tedious experience for the customer, she points out.
Structuring deals or benefits that are more appealing, yet still competitive and profitable, is how operators in the African market should be looking to differentiate themselves, adds Smith.
"While this study benchmarked the prepaid market, the lessons gained are just as valid for all the other services offered by players in the market," Smith concludes. "Today, consumers don't need a reason to leave an operator, but they do need a compelling reason to stay with one. As the number of available mobile product and service options increase, delivering a best-in-class customer experience becomes less straightforward. However, it undoubtedly needs to be a top priority to win and retain customers."
Share
