Tuesday, June 14, 2011

Total life time value of the customer and EBITA margin

I strongly believe the more time customer spend on the network, it tends to be more and more profitable. Shares overhead, complaint might reduce, experiment with VAS, cross selling, operaor can explore new avenue of monetizing such loyal customer data base

Therefore increasing his convenience of staying with us should be our primary responsibilities as U&R, marketing person. Increasing his loyalty with service meant increasing his participation for creating better user experience. Let him feel the pride, happiness of co-creating things/services with us.

Imagine why there is Yahoo! Avatar, why there are n number of templates and modular options available in the most of the networking, social networking sites for personalization or customization. This is the journey from craftsmanship to mass production to differentiation/ branding and now to mass customization leading to personalization. This is something where users become addicted to. This is the power of co-creation and therefore increases stickiness like making it inseparable part of your life or lifestyle if I may call so..

This may not increase ARPU at a time or may lead to decrease.. (but this decrease will still be lesser than new aquisition ARPU) but the huge down side (of course positive) is for the cost. Cost will reduce drastically..and hence fully support the objective of healthier EBITA
If I may, Relationship with new customer is like maintaining Girl friend or boy friend.. but higher the AoN, relation tunrs out to be like Indian husband and wife.. love to hate and hate to love but does not  live without each other.. ;)

It is very interesting and softer aspect of U&R, product and marketing. There can be definitive objectives based on cross functional team  participation, chalked out short term to strategic long term actionables. Love to discuss and increase my understanding by sharing your understanding. Let us get in touch for common objectives we share..

No comments: