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Communication breakdown exists between telcos and customers, says Analysys

Customers are baffled by unclear bills and as a result telecoms companies risk lower revenues and increased churn, ...


November 6, 2006  


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Customers are baffled by unclear bills and as a result telecoms companies risk lower revenues and increased churn, according to a new report, The Next-Generation Bill: Commercial and Technical Strategies, published by Analysys, a telecom research firm based in the U.K.

The report argues that there is a gap between what telecoms companies believe customers value and what customers actually value.

Service providers put huge amounts of effort into developing new services and competing with each other on price, but much less into ensuring that bills are clear.

“What we are hearing repeatedly is that residential and business customers are increasingly frustrated by bills that make no sense,” says Teresa Cottam, the report’s author.

“Marketing strategies are falling at the first hurdle: people are so worried about the cost of new services that they don’t even try them. They dread receiving their bills because they are unpredictable, and become frustrated because they don’t know how to change matters.”

The report argues that the bill is a unique opportunity for telecoms companies to communicate with customers and offers several commercial opportunities.

“To deliver the optimal next-generation bill, service providers need to shake off outdated assumptions about their customers and gain a clearer understanding of their needs,” Cottam says. “If they do not change, powerful competitors from outside the telecoms industry are waiting in the wings to show them how.” br>