Within a highly competitive and volatile market, Telecom Operators focus their efforts on Market Share by reducing churn while actively engaging in SIM activations to generate new clients and create a positive Net Add. However, securing their active base and maximizing the amount of revenue from every client is equally as important. Therefore, Telecom operators must also focus on their brand image and seek to maximize the revenue per customer spent regularly within their network rather than on a competing one. This is where the Wallet Share or Share of Wallet (SOW) comes in.
Wallet share: A go-to metric for customer experience and ROI
Telecom Operators might identify their most loyal customers by ranking them by the product (bundle) they are attached to and consume regularly or the amount of revenue they generate (over the past 30 days). Innovating with additional products and services to up-/cross- sell a client could prove fruitful since multi-product customers are likely to have a favorable view of the company. Also, new products can be promoted to loyal customers before a public release, which generates new revenue streams and enhances brand loyalty.
The benefits of increasing a customer’s Share of Wallet go far beyond boosting the revenue and indirectly impacts the telecom operator’s market share by:
Improving client retention
Enhancing customer experience (CX) and satisfaction
Creating a loyal base from which to offer new products in the future
Market share vs. Wallet Share
The first rule of any business is to retain customers and build a loyal relationship with them and thereby avoiding high customer acquisition costs. Increasing wallet share has proven to be less expensive, more efficient and therefore a more profitable strategy to boost revenue rather than attempting to expand the overall market share.
Therefore, instead of spending huge efforts and maintaining a balanced net add, Telecom operators’ prime focus must be on growing their active subscriber base in order to lock their revenue and stabilize their businesses.
Both market share and wallet share measure the growing revenue from customers. However, a growing market share means attracting new clients from the competition. On the other hand, the wallet share indicates growing revenue from existing clients by expanding the number of products being used – which might also be taken from the competition.
Improve the customer journey to sustainably increase your wallet share
Moving away from static segmentation and mass marketing approach has proven to be vital for Telecom Operators to enhance customer relationships.
Mobile subscribers are constantly exposed to multiple options in terms of mobile products and services from the various players in a highly competitive market, with limitless sources of comparison to make informed buying decisions. Nowadays, many factors directly affect the customer lifecycle as well, for better or for worse. With a bad user experience, subscribers shift to the competition with minimal effort and at zero switching cost.
With Intersec's contextual marketing solution, Telecom Operators efficiently run personalized, relevant, and targeted marketing campaigns, taking into consideration each subscriber’s unique lifecycle journey while pushing the right information and promotional offers based on their profile, interests, preferences, habits, behaviors, and lifecycle journey stage.
With Intersec, our most successful Telco clients:
Create highly customized experiences with their subscribers using a dynamic and targeted approach
Avoid harassment by only reaching out to customers who have expressed interest
Build in perks for differentiation and brand building
Send reminders and updates on products and services in ways that will be noticed
Ask for customer feedback to be always more relevant
Discover how True Digital has developed a fine segmentation of its subscribers with more than 300 demographic, geographic, behavioral or interest-based micro-segmentation labels thanks to the Intersec platform.