|
20th August 2008
[Guest]

Print this page...
|
|
|
Home » Maximising Wireless Profit Program » 2003 » Extracting Higher Value from the Consumer Contract Segment » Reducing the Cost of Customer Acquisition and RetentionApril 2003 (31 pages)
In 2000, Mobile Market Development conducted an International Benchmark study examining a number of key performance indicators across over 50 mobile operators worldwide. The study revealed that customer acquisition and retention costs typically accounted for at least 25% of mobile operator operational expenditure. For most operators in developing world markets, this figure has undoubtedly declined over the last two years. The share of opex accounted for by customer acquisition and retention is probably now much closer to 15%.
One of the reasons for this has been increased market maturity which has seen the number of new connections being added, reduce substantially. Additionally, the two years have many operators take proactive steps to reduce the cost incurred on a per connection basis. In this section of the report we highlight a wide range of initiatives taken by operators in the hope of substantially reducing customer acquisition and retention costs. We also track the impact of these initiatives over time and indicate whether they have had a lasting positive impact on the operational profitability of the operators involved.
Price: EUR 1,250.00 / GBP 1,000.00 if you would like learn more about this report, or our other work in this topic area and how to subscribe, please contact us 1 Handset Subsidies: Reducing the cost of Customer Acquisition 1
1.1 The Argument for Subsidy Removal 2
1.2 Subsidy Reduction Triggers 5
1.3 Exploiting Legal or Regulatory Arguments for the Removal of Subsidies 5
1.4 Challenges Associated with Subsidy Reduction 6
1.4.1 Overcoming Dealer Anxiety and Retaining Dealers to Retain Customers 6
1.4.2 Improving Supply Chain Management 6
1.4.3 Dealing With Customer Shock 7
1.4.4 Other Preparatory Steps 8
1.5 Need to Pressurise Manufacturers for Better Quality Handsets 8
1.6 Further Findings 9
1.7 Australia 11
1.7.1 Details of Handset Subsidy Reduction/Removal 12
1.7.2 Parallel Churn Prevention Measures 13
1.7.3 Impact on Financial Performance and Market Share 14
1.7.4 Channel and Other Impacts 14
1.7.5 Update 15
1.8 France 16
1.8.1 Channel and Other Impacts 18
1.9 Germany 19
1.10 Greece 19
1.10.1 Background 19
1.10.2 Details of Handset Subsidy Reduction/Removal 20
1.10.3 Impact on Financial Performance 21
1.10.4 Related Initiatives 21
1.10.5 Impact on Handset Replacement Cycle 23
1.11 Ireland 23
1.11.1 Background 23
1.11.2 Details of Handset Subsidy Reduction/Removal 23
1.11.3 Impact of Subsidy Reduction 25
1.12 Portugal 25
1.12.1 Background 25
1.12.2 Details of Handset Subsidy Reduction/Removal 25
1.12.3 Related Initiatives 26
1.13 Impacts 27
1.14 Spain 28
1.14.1 Background 28
1.14.2 Parallel Initiatives 28
1.14.3 Telefonica - Financial Impact of Handset Subsidy Reduction 29
1.14.4 Competitor Reaction 30
1.14.5 Impact on Churn 30
1.14.6 Impact on Handset Lifecycle/Equipment upgrades 30
1.14.7 Impact on Connection Levels 30
1.15 Netherlands 31
1.15.1 Background 31
1.15.2 Details of Handset Subsidy Reduction/Removal 31
1.15.3 Channel and Other Impacts 32
1.15.4 Subsidies Beckoning Once Again 32
1.16 Denmark - Orange 33
1.16.1 Background 33
1.16.2 Details of Handset Subsidy Reduction/Removal 33
1.16.3 Competitor Reaction 33
1.16.4 Other Impacts 33
1.16.5 Subsidy Reintroduction 34
1.17 Other Markets 34
1.17.1 South Korea 34
1.17.2 Hong Kong 34 |
|