CUSTOMER MARKET SHARE VS REVENUE MARKET SHARE

[sunandaC]

CUSTOMER MARKET SHARE VS REVENUE MARKET SHARE.


Bharti Airtel managed to grab the sweet spot. One good strategy about Airtel is Grow consolidate and then back to the Growth cycle and the spiral continues.


 Bharti Airtel has 24.3% customer market share and 33.8% revenue market share.


 Vodafone India has 18.8% customer market share and 20.7% revenue market share.


 Reliance Communications has with 18.9% customer market share and pathetic 11.5% revenue market share.


 BSNL has subscriber share of 12.7% and mere 10.2% of revenue share


 Idea Cellular has 8.96% subscribers market share and 9% revenue market share


NOTE:--According to Mobile India, BSNL seems to have a turnaround in its operations as the company has added 81% more subscribers in July-2009, compared to June-2009.

 

[kartik]

Another way to evaluate this would be dividing the number subscribers by the revenue to get spend per subscriber.

The company with the best spend per subscriber can expect to dominate the telecom market / sector.

Logic being the company with a higher spend per subscriber is selling a lot of value add services to its base and the customers are happy with its services. These subscribers will champion the dis-satisfied customers or customers who do not derive the same value to join the bandwagon and inflate customer base + increased per customer spend.

Marketing expenses also get dictated by cost of acquiring a customer vis-a-vis spend per customer, which works in the favor of the operator with max revenue pc.