New Delhi: Loss making Vodafone Idea<\/a> (Vi) has removed 5-7% or about 25,000 of its retail partners<\/a> across the country to reduce costs of sales and distribution. People aware of the details said the cut off retailers were giving negative returns to the operator for a long time, in terms of customer acquisition costs. 据业内估计,Vi pan-India 4 - 5多数网络零售接触点,如同行Bharti Airtel和Jio的依赖。大多数零售商多品牌运营商,这意味着他们对所有的电信公司提供服务。几千是Vi的独家零售商,包括一些公司经营的零售商店。 新德里:亏损沃达丰的想法(Vi)消除了5 - 7%约25000名零售合作伙伴全国各地,以减少销售和分销的成本。人们意识到细节表示,切断零售商给操作员负回报很长一段时间,获取客户的成本。
According to industry estimates, Vi has a pan-India network of 4-5 lakh retail touch points, like its peers Bharti Airtel<\/a> and Reliance Jio<\/a>. Majority of the retailers are multi-brand operators, which means they offer services for all the telecom firms. A few thousand are exclusive retailers of Vi, including some company operated retail stores.
The removal has been done in the multi-brand retailer segment, with the company stopping payment of commission. The telco, which has been rapidly losing users to its rivals is adding new retailers so that its customer acquisition efforts do not suffer.
An ET query sent to Vi remained unanswered at the time of going to press.
Cash-strapped Vodafone Idea’s move come amidst consistent subscriber losses. Its subscriber base fell to 225.9 million in Q4 of FY23 from 243.8 million a year ago. Its net loss for the January-March stood at Rs 64,18.9 crore.
Brokerage Kotak said Vi’s selling, general and administration (SG&A) cost, which includes cost for customer acquisition, for Q4 increased 29% on-year but dipped 0.2% on-quarter to Rs1,456 crore. SG&A cost for FY23 was 45% higher than FY22.
The cost of acquiring a customer typically is between Rs 300-600 for a telecom firm, according to experts. The cost varies depending on the commission given by a telco to the dealers.
Vi has been giving the highest amount of commission to dealers to grab new customers (fresh acquisition as well as mobile number portability) in a bid to stop the slide in customer numbers. But while dealers were making good money, the company was not benefiting from the quality and quantity of customers acquired, said the people.
\"The telecoms sector has been plagued by rotational churn, which has significantly increased prepaid acquiring cost for operators. Building suitable intervention mechanisms and relooking channel incentives is likely to minimize cost of acquisition and improve quality,\" Prashant Singhal, EY Global TMT emerging markets leader told ET.
Vi chief executive Akshaya Moondra too had touched upon the point of high customer acquisition cost in the recent analyst call on the company’s fiscal fourth quarter results. He said Vi as well as other telecom firms have been trying to improve the quality of gross additions.
“At some level if you see the industry spending anywhere between Rs 12,000 to Rs 14,000 crore a year towards customer acquisition cost. And what you see as a net addition to the industry is very little,” Moondra had said.
He further added that the company has made some interventions to see that the incentives being paid to the channel partners are done on a more realistic basis. “They are giving us negative cash if you do an analysis over a six-month or a 12-month period. So, we have taken actions to stop doing business with partners who are contributing to loss rather than adding value to us,” the top executive said.
The company has done a lot of analysis and detailing around expenses being incurred on customer acquisition, a large part of which was being utilised on supporting rotational churn. The rotational customers usually shuffle between operators choosing best value deals. “We have also identified that and taken actions so that those kinds of acquisitions are not incentivized. You reduce the incentive which is being paid for subscriber who are habitual rotational churn,” Moondra had said.
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沃达丰断开一些零售合作伙伴来节省成本
据业内估计,Vi pan-India 4 - 5多数网络零售接触点,像同行Bharti Airtel和依赖Jio。大多数零售商多品牌运营商,这意味着他们对所有的电信公司提供服务。几千是Vi的独家零售商,包括一些公司经营的零售商店。
等查询发送到Vi时仍然悬而未决的新闻。
现金拮据的沃达丰(Vodafone)想法的举动来在一致的用户损失。其用户数量降至2.259亿年第四季度的FY23从一年前的2.438亿年。其净亏损1 Rs 64, 18.9卢比。
经纪科塔克说,六世的销售、一般和管理费用(品类),其中包括为客户获取成本,第四季度同比增长29%,但一季度下降0.2% Rs1,456卢比。比FY22品类FY23成本高出45%。
获取客户的成本通常是电信公司的Rs 300 - 600之间,根据专家。成本变化取决于委员会由电信经销商。
六世已经给经销商委员会的最高数量获取新客户(新收购以及手机号码可移植性),以阻止客户数量下滑。但当经销商赚好钱,该公司并没有受益于客户的质量和数量,人们说。
“电信行业已经受到旋转搅动,这大大增加了运营商预付费收购成本。建立合适的干预机制和与之通道激励措施可能会降低收购成本和提高质量,“Prashant Singhal,新兴市场是全球TMT领袖告诉等。
Vi首席执行官Akshaya Moondra也感动的点高客户获取成本在最近的分析师呼吁该公司第四财季业绩。他说Vi以及其他电信公司一直试图改善总质量的增加。
“在某种程度上,如果你看到这个行业支出每年Rs 12000到14000卢比之间对客户的采购成本。和你所看到的网络行业非常少,“Moondra说。
他进一步补充说,该公司已经做了一些干预措施,激励被支付渠道合作伙伴是更现实的基础上完成的。“他们给我们负的现金,如果你在6个月或12个月期间的一个分析。所以,我们已采取行动停止做业务与合作伙伴是谁造成损失而不是增加价值,”前高管表示。
公司已经做了大量的分析和详细的费用在客户收购,其中很大一部分是利用支持旋转搅动。运营商之间的旋转客户通常洗牌选择最有价值的交易。“我们还发现,并采取行动,这样的收购并不鼓励。你减少支付的激励用户习惯性旋转搅动,“Moondra说。
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New Delhi: Loss making Vodafone Idea<\/a> (Vi) has removed 5-7% or about 25,000 of its retail partners<\/a> across the country to reduce costs of sales and distribution. People aware of the details said the cut off retailers were giving negative returns to the operator for a long time, in terms of customer acquisition costs.
According to industry estimates, Vi has a pan-India network of 4-5 lakh retail touch points, like its peers Bharti Airtel<\/a> and Reliance Jio<\/a>. Majority of the retailers are multi-brand operators, which means they offer services for all the telecom firms. A few thousand are exclusive retailers of Vi, including some company operated retail stores.
The removal has been done in the multi-brand retailer segment, with the company stopping payment of commission. The telco, which has been rapidly losing users to its rivals is adding new retailers so that its customer acquisition efforts do not suffer.
An ET query sent to Vi remained unanswered at the time of going to press.
Cash-strapped Vodafone Idea’s move come amidst consistent subscriber losses. Its subscriber base fell to 225.9 million in Q4 of FY23 from 243.8 million a year ago. Its net loss for the January-March stood at Rs 64,18.9 crore.
Brokerage Kotak said Vi’s selling, general and administration (SG&A) cost, which includes cost for customer acquisition, for Q4 increased 29% on-year but dipped 0.2% on-quarter to Rs1,456 crore. SG&A cost for FY23 was 45% higher than FY22.
The cost of acquiring a customer typically is between Rs 300-600 for a telecom firm, according to experts. The cost varies depending on the commission given by a telco to the dealers.
Vi has been giving the highest amount of commission to dealers to grab new customers (fresh acquisition as well as mobile number portability) in a bid to stop the slide in customer numbers. But while dealers were making good money, the company was not benefiting from the quality and quantity of customers acquired, said the people.
\"The telecoms sector has been plagued by rotational churn, which has significantly increased prepaid acquiring cost for operators. Building suitable intervention mechanisms and relooking channel incentives is likely to minimize cost of acquisition and improve quality,\" Prashant Singhal, EY Global TMT emerging markets leader told ET.
Vi chief executive Akshaya Moondra too had touched upon the point of high customer acquisition cost in the recent analyst call on the company’s fiscal fourth quarter results. He said Vi as well as other telecom firms have been trying to improve the quality of gross additions.
“At some level if you see the industry spending anywhere between Rs 12,000 to Rs 14,000 crore a year towards customer acquisition cost. And what you see as a net addition to the industry is very little,” Moondra had said.
He further added that the company has made some interventions to see that the incentives being paid to the channel partners are done on a more realistic basis. “They are giving us negative cash if you do an analysis over a six-month or a 12-month period. So, we have taken actions to stop doing business with partners who are contributing to loss rather than adding value to us,” the top executive said.
The company has done a lot of analysis and detailing around expenses being incurred on customer acquisition, a large part of which was being utilised on supporting rotational churn. The rotational customers usually shuffle between operators choosing best value deals. “We have also identified that and taken actions so that those kinds of acquisitions are not incentivized. You reduce the incentive which is being paid for subscriber who are habitual rotational churn,” Moondra had said.
<\/p><\/body>","next_sibling":[{"msid":101025035,"title":"CM Jagan launches 4G internet services in remote areas of AP","entity_type":"ARTICLE","link":"\/news\/industry\/cm-jagan-launches-4g-internet-services-in-remote-areas-of-ap\/101025035","category_name":null,"category_name_seo":"industry"}],"related_content":[],"msid":101031649,"entity_type":"ARTICLE","title":"Vodafone Idea disconnects some retail partners to save on costs","synopsis":"According to industry estimates, Vi has a pan-India network of 4-5 lakh retail touch points, like its peers Bharti Airtel and Reliance Jio. Majority of the retailers are multi-brand operators, which means they offer services for all the telecom firms. A few thousand are exclusive retailers of Vi, including some company operated retail stores.","titleseo":"industry\/vodafone-idea-disconnects-some-retail-partners-to-save-on-costs","status":"ACTIVE","authors":[{"author_name":"Kiran Rathee","author_link":"\/author\/479258445\/kiran-rathee","author_image":"https:\/\/etimg.etb2bimg.com\/authorthumb\/479258445.cms?width=100&height=100","author_additional":{"thumbsize":false,"msid":479258445,"author_name":"Kiran Rathee","author_seo_name":"kiran-rathee","designation":"Reporter","agency":false}}],"analytics":{"comments":0,"views":2724,"shares":0,"engagementtimems":13520000},"Alttitle":{"minfo":""},"artag":"ET Bureau","artdate":"2023-06-16 07:34:01","lastupd":"2023-06-16 08:29:35","breadcrumbTags":["Vodafone Idea","kotak institutional equities","bharti airtel","reliance jio","retail partners","bharti airtel","reliance","Vodafone Idea news","Vodafone Idea retail partners","Vodafone Idea cost savings","telecom news"],"secinfo":{"seolocation":"industry\/vodafone-idea-disconnects-some-retail-partners-to-save-on-costs"}}" data-news_link="//www.iser-br.com/news/industry/vodafone-idea-disconnects-some-retail-partners-to-save-on-costs/101031649">
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