Modern communications companies stand at a crossroads. The traditional model of generating revenue from data is yielding fewer returns as consumers use more data in general and seek unlimited data use at a fixed price point. So, telecommunications companies are turning toward innovation to drive future revenue: 5G networks, the Internet of Things and integration with other industries like financial services and healthcare providers.
But transitions like these take time; surviving in the present is a matter of maximizing revenue and convincing consumers to choose your services—and stick with them over time. Here are four marketing tips for communications companies considering their acquisition and retention strategies as we move into this new era.
Specify Campaign Objectives
Trying to do everything at once will only overwhelm your marketing team and dilute their efforts. A better strategy is to lay out specific objectives ahead of time. For example, you may aim to hold the majority market share within a given geographical area by a certain date. You may aim to grow your customer base by X percent if you’re primarily focused on acquisition. A company prioritizing retention may aim to reduce customer churn by a certain percentage.
It is essential telecommunications marketers are on the same page from the outset. Define objectives, share them widely and make sure subsequent campaigns align. Then track key performance indicators (KPIs) to measure their success over time.
Identify Reasons for Customer Churn
Customer churn is costly for telecommunications companies. According to one study, the lost revenue from a single churned customer is around $1,117. Plus, it costs money to acquire replacement customers. As a result, large carriers lose millions of dollars per month from customer churn alone, although small- and medium-sized companies certainly feel the pinch as well.
In order to staunch the flow of lost customers, companies need to truly understand customer churn—not just how many people are leaving, but potential causes and solutions. Marketing data analytics plays an important role here, as the ability to query billions of rows of data gives marketers valuable insights in real time.
Produce Genuinely Helpful Content
Helpful, customer-focused content never goes out of style. Providing valuable content at the right time, whether it takes the form of written word or video, is key to engaging customers wherever they are in the funnel. Effective content marketing for communications companies requires understanding questions customers will have about their devices and services. For example, HuffPostcites one email marketing campaign by Verizon targeting new customers with educational materials on how to make the most of their new mobile devices. The campaign had a high click-through rate of 35 percent because it addressed a genuine need for new phone owners.
Optimize Growth Based on Target Audience
It’s always a good time to hone in on your target audience. Marketers may even discover untapped potential markets based on company data and broader market trends. For example, the B2B communications market is actually growing more quickly than the consumer market—2.6 percent growth annually compared to 0.6 percent, respectively. But marketing toward organizations will look very different than appealing to a subset of consumers.
This is why it’s so important to define your target audience ahead of time so you can craft marketing messaging that converts based on decision-makers’ wants and needs, whether that’s the head of a household or the head of a business.
These four marketing tips for communications companies will help organizations create highly targeted, data-driven campaigns with specific goals in mind. Doing so has the potential to reduce ad spend while boosting the effectiveness, as reflected in company KPIs.