How to reduce churn and cut costs with a cloud-based platform

Customer churn is a growing problem for Communications Service Providers (CSPs)—and an expensive one. Consumers have more choices and they expect more from their providers. To win in today’s hyper-competitive industry, CSPs need to rethink their customer experience. And the cloud can help.

27%

Why customers leave

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The pandemic has accelerated a trend that’s been building momentum for some time: cord-cutting. The multitude of OTT content available from numerous providers is driving the massive shift away from paid TV subscription services, and interest in voice services has been waning as well. As the percentage of single-play customers continues to grow, so do the churn rates.

20%

The blended churn rate among CSPs is above 20% per year.

The percentage of US cable TV subscribers plan to cancel their subscriptions by the end of 2021. That’s nearly double the 15% who reported doing the same in 2020.

The percentage of US consumers who canceled a contract with a CSP in the past two years cited customer service as the primary reason.

39%

In the modern home, where more people and devices are competing for the same limited WiFi bandwidth, congestion is a growing problem. And the higher reliance on the home network means more calls for customer support. Yet customer support is a weak spot for CSPs, who rank at the bottom among four dozen industries for customer satisfaction.

Consumer Experience Management Platforms: gamechangers for CSPs

A cloud-based Consumer Experience Management (CEM) Platform helps CSPs proactively resolve customer issues and meet the evolving needs of the smart home. The platform enables CSPs to shift from legacy ecosystems that rely on hardware and firmware to agile, scalable delivery platforms that take advantage of the unlimited compute power, storage, and memory available in the cloud.

Cited the long wait to have their issue resolved.

Among customers who canceled their CSP service

Said the reason was due to having to call more than once.

Said they would have stayed if they believed the provider’s service would improve in the future.

A CEM Platform can eliminate many of these frustrations. By intelligently managing the customer's home network and optimizing it via the cloud, CSPs can prevent connectivity issues in the first place. And when issues do occur, the platform identifies them in real time so the CSP can provide troubleshooting tools and automated workflows for resolving the customer problem.

Plume’s CEM Platform*

Churn reduction.

30%

Customer lifetime increases.

30%

Customer lifetime value increases.

70%

Saving costs and boosting revenues with a CEM Platform

Person talking on the phone while writing down on a notepad in front of a laptop.

Erosion of revenues due to OTT market competition. Backlog of services and products awaiting release. Increased operational expenses for customer calls and truck rolls.

A CEM Platform solves problems not only for customers but also for CSPs. Among the CSP challenges are:

•

CSPs that want to lead in today’s competitive landscape need to not only improve the customer experience and demonstrate their customer commitment, but also to find new revenue streams and optimize their OpEx.

Plume’s CEM Platform*

Reduces OpEx for truck rolls by up to 67%.

Reduces OpEx for call-in rates by up to 51%.

Increases ARPU by up to $10-$15.

Eliminates 97% of installation and activation costs.

Accelerates the rate of future developments by 67%.

To reverse the rapidly growing churn trend, CSPs need to refocus on their customer needs. A CEM Platform enables CSPs to rapidly meet the changing consumer needs and demands—and gain a competitive edge.

Sources: “New Survey Shows 27 Percent of U.S. Households Plan to Cut Cable TV Subscriptions in 2021,” Trade Desk “Total Cost of Ownership Study,” Plume “Reasons for Customer Churn in the Telecom Industry: 2019 Survey Results,” TechSee “American Customer Satisfaction Index Telecommunications Report 2019-2020,” ACSI “Reasons for Customer Churn in the Telecom Industry: 2019 Survey Results,” TechSee

*All statistics are taken from the Plume Total Cost of Ownership Study and represent the greatest percentages measured for each category. Long-term phone call and cost records from November 2018 to August 2019 for over 2 million customers were analyzed in the first half of 2019 to measure the operational benefits of the Plume CEM platform deployment.

Learn more about how Plume helps CSPs improve service, reduce operating expenses, and increase their capability to upgrade and deploy new services.

Download the TCO study