RCS as a Key Subscriber Retention Tool
There’s been a lot of discussion about the value of RCS. Something that’s very clear to us is that something is often overlooked – the value of RCS as a key element of a successful subscriber retention strategy.
Consumers have shown strong interest in OTT messaging applications available as downloadable applications. That’s partly because some of them are pretty cool, but it’s also partly because they want new functionality but it hasn’t been matched by offers from their mobile network providers. Default messaging clients haven’t kept up with perceived advances available elsewhere. In the absence of any new features, they have gone in search of a richer experience, even though this means a compromise in terms of reachability – after all, not all users have access to the same features.
RCS-e changes that, as it offers a rich messaging experience, complemented by features that users want and it’s potentially available to all. The difference is that, instead of having to go and find these features, they will be available natively. If the user can obtain something desirable from their network provider, there’s going to be less incentive to seek it elsewhere.
All of which adds up to a powerful tool to aid customer retention. MNOs need customers to use their voice and data bundles and, hopefully to require additional call minutes, texts, and so on. Customer acquisition costs are very high – MNOs need to both keep customers they win and to ensure that they use the services available rather than opting for those elsewhere. If the right features are available to them, then there is less incentive to migrate to other services. This, coupled with the ubiquity of RCS-e is a game changer: RCS-e users will be able to communicate with each other, but also with users who don’t have the service, which isn’t the case with the OTT applications that are available.
RCS-e needs to be considered from a strategic level. It helps MNOs ensure that customers fully utilise the available services and provides a strong incentive to continue using them. After all, why seek out an alternative if what you already have gives you rich features and functionality?
-- Brent
