Editor’s Note: Welcome to our weekly Reality Check column where C-level executives and advisory firms from across the mobile industry share unique insights and experiences.
Leading wireless brands know that successful customer relationship strategies start within the first 90 days of a new subscriber coming aboard, as this is when carriers have the best opportunity to not only turn new customers into brand advocates, but also enable them with self-service tools and cross-sell them on value-added products that help to drive brand loyalty. This secures competitiveness and ensures the customer stays with the provider for the long term, resulting in high loyalty and lifetime value.
However, this is easier said than done.
The reality for the wireless industry today is that the first three months are also commonly the most costly from a care perspective, as this is when the greatest volume of contact center inquiries are received, usually related to the first month’s bill. Despite significant investments in technology, customer support staff and processes, virtually every wireless carrier continues to struggle with this same problem: customers experience first-bill shock and confusion. Hundreds of thousands of support calls are accumulated on a monthly basis, each averaging handle times of more than eight minutes and costing five to eight dollars. This translates into significant customer care expenses and severely hinders a carrier’s ability to expand the relationship. Bill confusion and its related subsequent calls are typically the most negative experience for customers, who are then at risk to churn. And still, bill delivery is the primary recurring touch point that a company has with a customer. What’s a wireless carrier to do?
Enter video bills
Industry leaders are now transforming the static billing experience into a positive communication touch point with the use of personalized, real-time video. Online video – the most engaging digital medium – pulls the customer’s individual data to explain account and usage information in an easily digestible manner and walks the customer through her statement line by line.
Personalized, real-time video bills deliver the engaging “wow” experience that allows the customer to feel valued by the brand and also effectively help carriers address the drivers of churn by proactively combating negative customer experiences. Such videos are designed to deliver experiences that educate customers about device features or plans, proactively explain the first bill to avoid sticker shock, highlight value-added services to help customers get the most from their wireless account and recommend actions that deliver a greater experience and relationship with the brand.
Video bills proactively address frequently asked questions, but the ability to tailor the video based on an individual customer’s previous activity is what’s key. For instance, inquiring about how to enroll in autopay may be a common question, but if a customer is already enrolled, this message is irrelevant. To increase this customer’s satisfaction with the brand and improve his experience would be about a service he is not enrolled in, such as paperless billing or a mobile app. This tailored support and personalized education for the customer also increases loyalty through the uptake in value-added services.
Additionally, the real-time component – in which the video is generated the moment the customer clicks play – is crucial for accuracy and privacy. A customer who immediately pays his account balance after viewing a video bill should not see the same balance if he re-watches the video. If the video and balance were not accurately updated in the moment, this would drive further confusion for the customer, who would likely then call the contact center to understand the inaccuracy – the opposite intended performance of a video bill. Real-time capability is key for absolute accuracy and the best viewer experience.
The top wireless providers have delivered video bills over the last few years, with AT&T as the trailblazer. While each carrier has different program goals, ranging from churn reduction to call deflection to lifting net promoter scores, AT&T video bills specifically deliver “a significant reduction in bill-related calls,” says the wireless giant’s Senior Executive Vice President of Technology and Network Operations, John Donovan. The effectiveness of video bills is matched only by high levels of engagement and customer satisfaction, as more than 85 percent of viewers find the bills helpful.
Beyond the bill
Carriers have proven that video bills are effective and engaging at the monthly bill payment recurring touch point, yet carriers are continuing to explore other opportunities within and beyond the first 90 days to maximize the customer experience.
Instead of waiting 30 days for the first billing cycle to hit, wireless brands have immediately sent personalized videos to welcome new customers. When a customer purchases a new service plan or device, wireless providers can use account details to proactively onboard him with personalized education on key elements and any actions to take Whether the video content sets expectations on the device’s arrival date, details the nearest retail location for tech support or explains the rewards and loyalty program, a welcome video results in a proactive and positive first customer experience with the brand. Last year, U.S. Cellular launched a similar program to welcome new customers by explaining their specific plan and educating subscribers on value-added services and its loyalty rewards program.
Further in the customer relationship, a carrier has the opportunity to analyze the customer’s current wireless data usage and service patterns as well as recommend tailored plans that best serve the account holder’s needs. Paying less for a current plan or changing to a new wireless plan are instances in which the provider can proactively engage at-risk customers in support of retention initiatives that promote transparency, ensure an optimal brand experience and boost average revenue per user.
Wireless carriers have the opportunity to deliver differentiated experiences at multiple touch points that are informative, relevant and engaging to the customer. Not only will this aid in combating churn and inbound calls, but it will also help to gain the customer’s trust and increase his brand engagement, lifetime loyalty and value.
