The telecommunications industry has undergone a significant transformation, with customer retention becoming a crucial factor for sustained success. Leveraging advanced technology and strategic marketing, companies like Airtel are setting benchmarks in customer engagement and satisfaction. To explore how Airtel is driving customer retention and maximizing Customer Lifetime Value (CLTV), let’s go into the intriguing career journey of Anshul Agarwal, who is currently leading Airtel’s Online Growth team.

Introduction

My journey into the digital realm began after completing my MBA, leading me through pivotal roles at Cognizant, where I worked as a digital marketing consultant with renowned brands like PepsiCo India. Transitioning to Network18, I played a vital role in the News18 Umbrella transition, showcasing my strategic prowess. Joining OYO was a deep dive into the startup world, where I embraced dynamic roles and contributed to the company’s exponential growth. Four years ago, I joined Airtel’s growth team, initially focusing on DTH growth and later expanding my role to encompass all lines of businesses within the digital ecosystem. 

The Role of Airtel as a Legacy Brand

Transitioning to Airtel, it’s essential to recognize our legacy as a pioneering brand in the telecommunications industry. Airtel’s rich history is characterized by innovation, customer-centricity, and a relentless pursuit of excellence. With a presence in over 18 countries across Africa and Asia, Airtel has established itself as a global leader in telecommunications. We have continually evolved to meet the changing needs of our customers, leveraging technology and strategic partnerships to deliver superior connectivity and digital experiences. With a strong focus on customer retention and satisfaction, Airtel stands as a beacon of reliability and innovation in the telecom sector, setting the benchmark for service quality and customer engagement.

Let’s delve into how Airtel has built upon its legacy:

• Building on Legacy: At Airtel, our continuous commitment to innovation and adaptation has defined our evolution, setting benchmarks for service quality, customer experience, and technological advancements. Over the years, we have witnessed our impact on India’s telecom landscape, shaping Airtel into a legacy brand with a rich history of pioneering initiatives and staying ahead of the competition.
• Leadership and Vision: Under my guidance, our focus remains on maintaining our status as a legacy brand while embracing modernization and growth. My understanding of market dynamics allows us to navigate the rapidly changing telecom industry with agility and innovation. This has been steering Airtel towards new horizons, including integrating advanced technologies, expanding digital services, and exploring emerging opportunities like 5G.

Airtel’s Growth Strategies and Innovations: An Insider’s Perspective

As an integral part of Airtel’s strategic planning, we have implemented several innovative strategies to drive growth and enhance customer experiences:

• Rural Expansion: Over the past year, we’ve rolled out approximately 30,000 sites in rural areas, recognizing them as pivotal for future growth.
• Influencer Outreach: Leveraging influencers has proven effective in educating and engaging rural communities, contributing to increased adoption rates.
• Bundled Services: Our bundled plans, such as the 699 bundle combining DTH and broadband services, offer customers cost-effective solutions and streamline their experience.
• Targeted Marketing: Utilizing predictive models and machine learning, we’re refining our targeting strategies, particularly in areas with limited coverage, to optimize marketing efforts.
• 5G Innovations: Introducing 5G-enabled devices that enhance data speeds, we’re overcoming infrastructure barriers and delivering reliable broadband services to more households.
• Premium Customer Focus: Our ‘Airtel Black’ bundle prioritizes high-value customers, providing them with premium services and a dedicated customer experience, ultimately increasing customer retention and lifetime value.

Strategies for Customer Retention

Retention is paramount for sustainable growth and profitability in telecommunications businesses like Airtel. As I oversee online growth, I understand the critical role retention plays in our annuity-based model. We aim to keep customers across all our lines of business, whether prepaid or postpaid, engaged and satisfied to ensure they stay with us for the long term. 

For us, retention involves two crucial aspects. Firstly, we work diligently to prevent service disruptions due to non-payment, as even a slight delay in recharging can lead to customer dissatisfaction and revenue loss at our scale. Secondly, we focus on minimizing churn, recognizing the significant risk posed by customers switching to competitors. This risk is particularly pronounced in a vast and diverse market like India, where network perception plays a pivotal role. We continuously analyze customer behavior and engagement metrics to identify potential churners and implement targeted retention strategies. We aim to provide seamless service, address customer pain points, and enhance overall satisfaction to ensure our customers stay with us and continue to benefit from our services over time.

Some strategies we use are:

• Understanding Customer Needs: At Airtel, we prioritize understanding and predicting customer behavior and needs through advanced data analytics. By leveraging data insights, we gain a deep understanding of what our customers want and need, allowing us to tailor our services and offerings to meet their expectations effectively.. This approach has enhanced customer satisfaction and loyalty, driving long-term relationships with our valued customers.
• Innovative Customer Retention Programs: We have implemented specific programs and initiatives to retain customers and ensure their continued satisfaction. These include personalized plans tailored to individual preferences, loyalty programs that reward customer loyalty and engagement, and continuous enhancements to our customer service to provide a seamless and enjoyable experience. By constantly innovating and adapting to evolving customer needs, we strengthen customer relationships and foster loyalty across our user base.

Increasing Customer Lifetime Value (CLTV)

At Airtel, we emphasize strategies to enhance customers’ lifetime value by focusing on:

• Cross-Selling and Up-Selling: At Airtel, we adopt cross-selling and up-selling strategies to increase customer reliance and loyalty. By offering complementary services and personalized upgrades, we enhance the overall value proposition for our customers. For instance, Airtel may offer broadband or postpaid services if a prepaid customer shows high data affinity. On the other hand, if there’s a high content affinity, we nudge the customer towards a broadband plus DTH combo, enhancing the value proposition and increasing CLTV.
• Unified Experience: We excel in integrating various services seamlessly, providing a unified experience that boosts customer satisfaction and encourages engagement with multiple offerings. By seamlessly integrating telecom services, digital entertainment, and business solutions, they create a strong customer bond, leading to higher retention rates and increased CLTV over time.

Technology and Personalization

We utilize advanced technology to personalize customer interactions and services, leading to:

• Personalized Customer Interactions: We prioritize personalized customer interactions achieved through sophisticated data analytics and AI-driven tools. This strategic approach allows us to tailor interactions to customers’ unique preferences and behaviors, thereby enhancing engagement levels and fostering stronger relationships over time. By consistently delivering personalized experiences that resonate with our customers, we increase customer satisfaction and drive higher Customer Lifetime Value (CLTV) as customers become more deeply integrated into our ecosystem.
• Enhanced Engagement: We strongly emphasize enhanced engagement through personalized services and communications tailored to each customer’s preferences. This proactive approach significantly boosts customer engagement, leading to greater loyalty and a longer lifespan. As a result, our efforts directly impact Customer Lifetime Value (CLTV), as engaged and loyal customers contribute substantially to our overall revenue growth and success.

Afterword

Looking ahead, I am excited about Airtel’s future goals. We are committed to driving innovation across our services, leveraging emerging technologies to create more customer value. Market expansion is also a key focus, as we aim to reach new segments and geographies, expanding our footprint and relevance in the telecom industry. Additionally, enhancing customer service remains a top priority, with continuous efforts to improve responsiveness, efficiency, and overall customer experience.

Here’s what we can look forward to:

• Fiber to the Home (FTTH) Expansion: We’re working on Fiber Wireless Access (FWA) to broaden broadband reach and break infra barriers. We’ve piloted “add to bill” exits for devices, aiming to enhance broadband sales, with Delhi being the recent pilot hub.
• Digital Acquisition and Customer Journey: We’re witnessing a significant rise in digital telco purchases, targeting 500 million digital purchasers by 2030. This shift necessitates focusing on personalized marketing and predictive analytics, where AI/ML plays a crucial role.
• AI/ML Integration: We aim to leverage AI/ML for predictive analytics, create localized campaigns, and automate language translations for better customer engagement. These efforts align with our goal of providing personalized experiences.
• Channel Allocation and Customer Experience: We prioritize communication channels based on customer affinity to prevent over-communication and maintain a positive customer experience. This includes stringent governance models to limit communication frequency.
• Preparation of a Cookie-less World: Investing in data clean rooms and collaborating with partners like Facebook and Google are part of our strategy to navigate the cookie-less future and ensure effective digital marketing strategies.

Reflecting on our achievements at Airtel, I am proud of the strides we’ve taken to drive growth and customer satisfaction. Our strategic initiatives have yielded tangible results, including maximizing CLTV, integrating services seamlessly, and personalizing customer interactions. We’ve seen increased engagement, higher customer loyalty, and a stronger market position, all contributing to our continued success and impact on the industry. Moving forward, I am confident that we will build upon these successes and continue to deliver exceptional value to our customers.

As we navigate the rapidly evolving telecommunications landscape, Airtel remains committed to innovation and customer-centricity. Our focus on understanding customer needs, leveraging cutting-edge technology, and implementing strategic retention programs has positioned us as a leader in the industry. By continually enhancing customer experiences and embracing new opportunities, we are shaping a future where connectivity and engagement go hand in hand.

The journey doesn’t end here. Airtel’s relentless pursuit of excellence ensures that we will keep pushing boundaries and setting new standards in customer retention and lifetime value. We look forward to building stronger relationships with our customers and driving sustainable growth for years to come.

Thank you for reading about our journey and strategies at Airtel. We are eager to hear your thoughts and feedback. Listen to the full podcast on Spotify or YouTube, and leave a comment to let us know what you think. For more insights and updates, follow our blog and connect with us on social media. Together, let’s shape the future of telecommunications and customer engagement.

Anshul Agarwal

AVP – Growth at Airtel

With over 12 years of marketing experience, Anshul is currently leading Airtel’s Online Growth team. Previously, he spearheaded OYO’s global referral program and played a pivotal role in their US market launch. At Network18, he excelled as a Brand Manager, boosting brands like CNN-News18 and FirstPost. Anshul’s mission? Driving growth and innovation in the marketing sphere.