A retail channel in telecom refers to the network of physical anddigital outlets where telecom products and services, such as SIM cards, prepaidvouchers, e-top-ups, and mobile devices, are sold to end customers. Thischannel includes company-owned stores, authorized resellers, independentretailers, and online platforms where customers can access telecom services.
Despite the rise of online shopping, physical retail stores remaincrucial in the telecom industry. A 2022 survey found that while onlinepurchases are preferred for their convenience, many consumers still experiencedoubt and anxiety when buying devices online without human interaction.
The shift towards an omnichannel model, where physical and digitalchannels integrate seamlessly, is becoming increasingly important. Thisapproach allows customers to interact with telecom providers through multipletouchpoints, enhancing their overall experience.
Why Retail Channels are Important and WhoTracks Them?
Retail channels play a crucial role in driving telecom revenue byensuring products and services are accessible to customers across variousregions. They serve as the primary touchpoint between the telecom operator andits customers, influencing sales, brand visibility, and customer satisfaction.Typically, Revenue Operations (RevOps), Sales Teams, and Channel Managerswithin the telecom company are responsible for monitoring and optimizing retailchannel performance.
Some of the Key research from leading companies indicate the value andimportance of a telecom retail channel.
triPica: Found that while 39% of consumers said they preferred to shopfor telecom services online, a significant 63% of those who did shop in storespreferred operator-owned shops (i.e., official retail stores). This indicatestrust and a desire for direct interaction with the provider.
EY: Their research highlights that while digital channels are growing,27% of customers still prefer phone calls to contact centers, suggesting a needfor human interaction, which retail stores can also provide.
UniformMarket: Their 2024 omnichannel statistics show that 36% ofshoppers start their journey in a physical store. This demonstrates thatretail remains a key touchpoint for discovery and initial engagement, even ifthe final purchase happens online.
It's widely acknowledged that physical stores are crucial for devicesales, especially for showcasing new models, providing hands-on demos, andoffering immediate support for setup and troubleshooting.
Why Should Retail Channel Performance BeTracked and How It Affects Revenue
Tracking retail channel performance is essential for maximizing revenue,ensuring efficient product distribution, and maintaining customer satisfaction.A well-monitored retail channel helps identify underperforming locations,optimize stock allocation, prevent revenue leakage, and improve customerservice. Poor channel management can lead to stock shortages, missed salesopportunities, and inefficient use of resources, all of which can impactprofitability.
Top 10 KPIs for Telecom Retail ChannelPerformance
- Sales Volume per Retailer: Measures the total units sold by each retailer, highlighting performance and sales potential.
- Revenue Contribution per Channel: Tracks the total revenue generated by each sales channel for better financial insights.
- Stock Availability and Turnover: Monitors how efficiently stock is managed and replenished across retail outlets.
- Transaction Success Rate: Measures the percentage of successful transactions for prepaid vouchers and top-ups.
- Customer Acquisition Rate: Tracks the number of new customers acquired through each retail channel.
- Churn Rate: Monitors the percentage of customers leaving the network and identifies potential retention gaps.
- Channel Coverage: Assesses the geographic reach and availability of services across retail points.
- Retailer Engagement and Activity: Evaluates how actively retailers participate in promotions and sales strategies.
- Fraud Detection Rate: Monitors and prevents fraudulent activities within the retail distribution network.
- Operational Efficiency Score: Combines error rates, stockouts, and manual interventions to assess overall efficiency.
How Estel Technologies Helps You Track KPIs
Estel Technologies offers advanced solutions, including DMS(Distribution Management System), VMS (Voucher Management System), and eTop-Upplatforms, to help telecom companies track and optimize retail channelperformance effectively.
- DMS: Monitors stock levels, distributor activity, and sales performance in real-time, ensuring better stock allocation and reducing stockouts.
- VMS: Provides complete visibility into voucher distribution and redemption, tracking sales volume, fraud rates, and revenue contribution per channel.
- eTop-Up: Enables digital recharge tracking with real-time data on transaction success rates, sales volume, and customer acquisition.
By leveraging Estel's platforms, telecom operators can gain a unifiedview of their retail operations, ensuring data-driven decisions, enhancedrevenue performance, and a more efficient sales network.
Tracking KPIs like sales volume, revenue,stock availability, and customer acquisition/churn is vital for telecom retail.These metrics enable performance measurement, strategic decision-making (e.g.,resource allocation, network optimization), improved customer relationshipmanagement, and enhanced operational efficiency. Implementing systems fromreputable software companies like Estel technologies automates data collection,provides real-time reporting and advanced analytics, integrates data fromvarious sources, improves accuracy, and offers scalability for better retailmanagement.
