Forum – Creating customer insight
THE CASE STUDY
A brand was losing market share to a dangerous and new type of competition. Customer insight led to a radically different competitive strategy.
THE NEW COMPETITION
A European fixed-line telecommunications company was being attacked by cable operators and was losing customers at a rate of 50,000 per month. This was a serious haemorrhaging of revenue – €200 million per year – which in a fixed-cost business meant that most of this loss fell straight to the bottom line.
The cable operators offered cable television and cheaper cable telephony. According to the company's competitor intelligence the line rent could be 25%, or as much as 43%, less than that of the fixed-line company. And there were significant savings on call charges too.