CEO of Lifecycle Software, Mo Firouzabadian, recently discussed his thoughts on the cost of living crisis and what Communication Service Providers can do to help customers.
Millions of consumers within the UK are now facing a serious cost of living crisis, with bills only set to rise and institutional support at a minimum, the future is looking bleak for many. Telecom operators are also now starting to drive up their Prices and Broadband, further increasing the financial pressure on the public.
As inflation keeps rising within the UK, many telecom operators have felt they have little choice but to raise their prices in line with energy, gas and petrol suppliers. The result of this has seen phone and broadband bills rise at a rate that outstrips inflation, with a prediction they could rise by as much as 9.3%.
Consumers may not even now have a full understanding of the impact of these rises. A recent survey from Hyperoptic found that over 9 million customers were unaware of the upcoming bill shock they might be facing. More than half of customers surveyed also stated they thought these rises were unfair and that they wouldn’t have signed a contract with their provider if they were aware the prices would increase. Telco will however argue that the price rises are justified. With the increase in working and educating from home and entertainment streaming, broadband usage has seen an exponential increase. Providers, therefore, need to invest any money gained from price rises back into their networks to cope with the increased demand. This does not mean there aren’t mechanisms providers can put in place to protect themselves and their consumers.
Establishing price caps is a good way for customers to firmly establish what they are willing to pay a month and give them the flexibility to extend this limit if needed but not exceed it. Family plans or group plans are also handy for managing spending within a household. The group allowance means adding extra members can bring additional discounts for the overall deal.
Telecoms will also have to be wary of their customer retention throughout this period. Savvy shoppers will be looking at the best month-to-month offerings and taking out short-term (1 month) SIMs with a provider that best suits them. Telecoms wishing to avoid this churn would be best suited to deploying flexible plans, schemes and offers that are transparent on what a customer can expect to spend. Having a real-time charging option will also be advantageous, customers can then have an overview of what they are spending, where they are spending it and how much of their allowance remains. Research has comprehensively shown that customers prefer to have complete control and transparency over their spending behaviour. Implementing these strategies creates a simple win-win situation for Communication Service Providers where they can increase customer satisfaction whilst decreasing consumer churn.
To find out more about how Communication Service Providers can support customers during the cost of living crisis read the full article.
Read more about broadband and mobile firms' commitments to support customers here.