Customer Success Strategy for Afghan Telecom Corporation

1. 7-AFTEL- Customer Success Development
Strategy
Written and Researched By: Nizamuddine Muslih
Email: n.muslih@afghantelecom.af
nizam.muslih@gmail.com
Contact: +93708131411 /+93744416275 Copy Right Reserved

2. AFTEL- Customer Success Development Strategy
To satisfy the AFTEL Customers success is one of the more misunderstood concepts
in marketing and sales.
Like “anger” or “delight,” it isn’t something that you can quantify, and it most
definitely isn’t a metric.
But it is something that AFTEL can illustrate using very precise methodologies.
Here talking about customer success key performance indicators (KPIs). These are
hard numbers that, like a fine-tipped paint-brush, can help you achieve a full and
detailed portrait of seven things:
1: Churn Rate
2: Recurring Monthly Income (RMI)
3. Customer Satisfaction Index (NPS)
4: A positive experience for the client (CS)
5: The Renewing Fees or Rate
6: Retaining Customers Costs
7: Value over the course of a customer relationship (CLV)

3. 1: Churn Rate
 To determine how many clients you've lost in a certain period of time, use the
concept of customer churn.
 A churn rate of 1% means that if you have 500 clients at the beginning of the
month and lose 5 of them, you have lost 5% of those customers.
 We can't tell you whether this is good or bad because we don't know what your
industry's average churn rate is.
 Do not include new customers acquired during the time period in the churn rate
calculation (unless those customers churn within the period).
 You can use the churn rate to see how long your customers stay with your
company.
 In other words, it's not meant to show whether or not you're gaining more
customers than you're losing.

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Also keep in mind that there are two ways to look at customer churn rate:
1: Customer churn: The number of customers who have stopped doing business
with a company.
2:Churned gross value (CVG): The total amount of money in the system.
 We recommend looking at both because it will help you determine how well
you're maintaining low- and high-spend consumers, respectively.. A churn rate
can also reveal if the clients you keep are spending enough to compensate for
the losses incurred by those who have left.

5. 2: Recurring Monthly Income (RMI)
 The critical performance indicator of monthly recurring revenue is how much money
you can expect to make each month. If you're in the SaaS or subscription-based
business, this KPI is very useful for letting you know if your clients like what you're
selling.
 The higher your MMR month over month, the more customers you're gaining than
you're losing. It's not uncommon for a customer success team to keep its churn rate
lower than its rate of new client acquisition in order to achieve this result.

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 Customers (new and old) are spending less money, which could be a sign that you're
not providing them with the results they expect from your business.
 Multiply the total number of active customers by the average revenue per customer
to get the MRR number.
 Expansion MMR can also be used to determine the revenue generated by one-time
purchases, such as an upsell or an add-on.
 Expansion MMR tells you if clients are satisfied enough with your service to justify
investing additional money on top of their regular monthly subscription fee.

7. 3. Customer Satisfaction Index (NSI)
 How likely are your customers to recommend your service to someone else? Net
Promoter Score answers this question.
 To calculate Net Promoter Score, you first have to collect the data to the question,
“On a scale of 1 to 10, how likely are you to recommend this product or
service?” Use a form tool such as Survey Monkey, Jot Forms or Google Forms to
help you create a rating scale response of 1-10. We also recommend including a
space for an open-ended explanation for their rating.
 Once you’ve distributed your survey and collected the feedback, you can start
analyzing the results. The scoring ranges are as follows:
 0-6: Detractors.
 7-8: Passives.
 9-10: Promoters.
 From there, subtract the percent of detractors from the percent of promoters.

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 Take, for example, a sample of 100 respondents, of which 60 are proponents, 30
supporter passives, and 10 critics.
 In this scenario, you would have 60% promoters, 30% passives, and 10% detractors.
The NPS drops from 60 to 50 when you take away the ten percent score reduction
factor (NPSDR).
 The higher your NPS, the more likely your customers are to recommend your
company to their friends and colleagues.
 Your brand's success is evident by the fact that your customers are happy with your
product or service. Surely you wouldn't recommend a product that doesn't perform.
 Open-ended responses from NPS surveys or any customer survey can provide
actionable insights into what you can do differently to ensure future customer
success.

9. 4: A positive experience for the client (CS)
 NPS is similar to a customer satisfaction score.
 The only difference is that this KPI better reflects customer satisfaction.
 Customer satisfaction data is best collected by incorporating surveys into your
product or service delivery, just like the Net Promoter Score (NPS).
 For example, you may ask customers to rate their satisfaction with your brand
following each customer service interaction.
 You can also ask customers to rate their experience at the end of each scope of work,
contract or shortly before renewal.
 You can also ask customers to rate their experience.For example, you can use
multiple choice responses (e.g. "Rate your experience on a scale of 1 to 10").
 (e.g., 1-2 being bad, 3 being satisfactory, 4-5 being great).

10.  Just figure out how many of your responses are positive and divide that number by
100 to get your CSAT score.
 You get the most out of a customer satisfaction score when you give customers a
reason to explain their rating.
 You can't tell if your customer success is suffering from a lack of quantitative
customer success metrics, for example.
 For reporting purposes, however, customer satisfaction (CSAT) is a valuable metric.
Continued …

11.  Renewal rate is the best metric for measuring customer loyalty, especially for B2B
service providers like SaaS.
 Simply divide the number of customers who renew by the number of customers who
are up for renewal in a given period of time to get the renewal rate..
 Then, multiply that result by 100 to obtain a percentage representation of your
renewal rate.
 The fact that a high percentage of your customers renew their contracts or service
agreements indicates that they have had a positive experience working with your
company.
5: The Renewing Fees or Rate

12.  But it’s important to weigh renewal rate against other factors such as MRR.
 Just because a high percentage of your customers are renewing, doesn’t necessarily
mean they’re spending as much money or even more.
 Conversely, if 1 of 3 customers cancels, but the other customers renew at a higher
price, you may actually end up with a higher revenue renewal rate, even if your
customer renewal rate is down period-over-period.
Continued …

13.  A high CSAT, NPS, MRR, renewal rate and churn rate can be achieved at a high cost
to your company.
 The cost of customer retention will give you an idea of how cost-effectively you're
achieving customer success..
 It's a lot of work to calculate customer retention.
 When calculating the cost of your customer success program, you must first take into
account all of the costs associated with that program (month, quarter or year).
 The customer success costs are then divided by the total number of customers during
that time period.
6: Retaining Customers Costs

14.  The goal is to figure out how much money you’re spending on each customer in your
attempt to retain them.
 Example: $50,000 spent over one year / 100 customers = $500 per customer to retain
them per year.
 The best way to think of customer retention cost is as a relative metric. Focus on
period-over-period improvements in retention cost.
 One period’s worth of customer retention cost is just data.
 Comparing customer retention cost against specific customer success initiatives over
time, on the other hand, is actionable information.
Continued …

15.  Is your company's average customer worth the money they bring in for you over the
course of their entire relationship with you?
 When you know how much your typical customers are worth over time, you can
better determine how much you should invest in them.
 CLV can be calculated by multiplying the average purchase price by the average
frequency of purchases.
 Once you have that number, multiply it by the average life span of a customer
relationship.
 For instance, say your average customer spends $1,000 twice per year and they
typically remain a customer for 3 years. The equation would look like this: 2 x 1,000
x 3 = $6,000.
7: Value over the course of a customer relationship (CLV)

16.  In order to arrive at net revenue, you can deduct the cost of customer retention from
CLV.
 Customer retention costs can be calculated by multiplying the average lifespan of a
customer by $500 per year.
 Then subtracting that amount from $6,000 is a simple calculation. It would be $6,500
– $1,500, or $4,500 in this case.
 CLV, like other customer success metrics, is a relative metric that only makes sense
when viewed in relation to other metrics.
 Making smart investments in customer success should be your ultimate goal if you
want to see an increase in your CLV over time.
Continued …

17.  The goal of KPIs is to keep tabs on the company's progress and spot areas for
improvement in the way customers are treated.
 They're not meant to be a determinant of your success or failure.
 There are a number of metrics you should be tracking, interpreting, and creating an
actionable picture of your customer success program.
 Hopefully, you'll be left with a more upbeat portrait than Domestic Networks
 Regardless of the outcome, you'll have gained some knowledge.
Finally, a final word on the subject of customer success metrics:

18.  With so much competition in the telecommunications industry today, it's imperative
that you focus on providing excellent service to your customers if you want to be
successful.
 To improve customer experience, the telecom industry is in third place, according to
a 2017 Forrester report.
 In addition to emphasizing the importance of customer service, the report
recommends that telecommunications companies focus on improving the worst
customer experiences rather than refining the best.
 We've outlined five ways that telecoms can improve customer satisfaction and
loyalty in the following sections:
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19.  The first step is to get to know your customers.
 Consumers' expectations have risen as OTT service providers offer innovative digital
content and services at lower prices.
 Is there any way you can turn this around in your favor?
 It's as simple as knowing what your customers want and delivering on that promise.
 According to a survey conducted in 2013, customers had the following expectations
of telecommunications providers:
 A more user-friendly way to communicate with your service provider is preferred by
50% of telecom customers who feel lost when dealing with automated service
systems.
 Approximately 35 percent of customers prefer to communicate with a personable and
empathetic associate.
 Customer service representatives who repeatedly say things like "your call is
important to us" or "that's our policy" to customers are known to irritate them.
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