Turbocharging customer loyalty: The need for CRM strategies

Adgully Bureau |

In an age where data drives customer service and customization, it is sad to experience a situation where a leading telecommunications company fails to make use of the wealth of information at its disposal.

In view of the customer service week a few days ago, I would like to share the experience I had recently with one of the largest telco companies in the GCC region, and it was a stark reminder of how poor customer service and a lack of personalization can drive customers away and benefit competitors.

A few weeks ago, I received a call from this telco company, in which they attempted to offer me an upgraded mobile package. In theory, this should have been a straightforward and potentially beneficial interaction for both of us. However, it soon became apparent that they had not taken the time to study my profile or understand my needs before reaching out to me.

The first issue was their insistence on pushing me towards a higher-tier package, even though a careful analysis of my data usage would have shown that I was not utilizing all the data included in my current plan. It was evident that the company's representatives had not taken the time to examine my consumption habits or preferences. This oversight, in my opinion, highlights a fundamental flaw in the telco company's approach to customer engagement.

This incident serves as a stark example of a major telco company's failure to develop a customer relationship management (CRM) strategy that resonates with its customers. When a company of this stature, which has access to a treasure of data about its users,

neglects to employ it to customize its offerings and improve customer experience, it undermines not only its reputation but also the loyalty of its customers.

As a marketing professional with over 25 years of experience, I am well aware of the importance of understanding the customer's needs and preferences, developing messages, customer journeys and strategies that resonate with them, and ultimately, creating brand experiences that enhance their daily lives. This experience left me deeply disappointed, especially coming from a telco company that has access to all the necessary customer data to do better.

The outcome of this encounter was double:

• First, I decided to re-evaluate my mobile package and opted for a more cost-effective option that better suited my needs, still staying with the same telco company.

• Second, the poor customer service and the inability of the telco company to provide a tailored offering led me to explore alternative options for my home internet needs. I found myself actively considering packages from other service providers, and finally decided to opt for another telco company.

This is a clear example of how a poorly executed customer retention strategy can not only damage the relationship between a company and its customer but can also carelessly promote the interests of its competitors.

It highlights the need for telco companies, as well as businesses in general, to invest in data-driven, personalized CRM strategies.

My recent experience with one of the biggest telecom companies in the GCC region was a reminder that even giants in the industry can fail when it comes to understanding their customers and providing a level of service that aligns with their preferences. This episode should serve as a cautionary tale for companies that have access to a wealth of customer data, urging them to leverage that information to create meaningful, customized interactions and secure customer loyalty.

Failure to do so not only risks alienating existing customers but also presents opportunities for competitors to swoop in and provide a more personalized, customer-centric experience.