How can TELUS balance offering competitive pricing for its mobile plans while maintaining high-quality customer service?

Introduction

Balancing competitive pricing for mobile plans while maintaining high-quality customer service is a critical challenge for TELUS. This trade-off involves weighing the financial implications of lower-priced plans against the resources required to deliver exceptional customer support. I'll analyze this scenario using a structured approach, considering various stakeholders, metrics, and potential outcomes.

Step 1

Clarifying Questions (3 minutes)

• Based on the current market dynamics, I'm thinking TELUS might be facing increased competition. Could you provide more context on the competitive landscape and our market share trends?

Why it matters: Helps understand the urgency and scale of the pricing pressure Expected answer: Increased competition from new entrants, slight market share decline Impact on approach: Would influence the aggressiveness of pricing strategy

• Considering our revenue model, I assume we have a mix of prepaid and postpaid plans. What's the current split, and which segment are we primarily targeting with this initiative?

Why it matters: Different segments may have varying price sensitivities and service expectations Expected answer: 70% postpaid, 30% prepaid, focusing on growing the postpaid base Impact on approach: Would tailor pricing and service strategies to postpaid customer needs

• Looking at user behavior, I'm curious about our customer churn rates and the primary reasons for churn. Do we have data on how price and service quality factor into customer retention?

Why it matters: Helps prioritize between price and service quality based on customer preferences Expected answer: Price is a factor, but poor service quality is the leading cause of churn Impact on approach: Would emphasize maintaining service quality while finding cost efficiencies

• From a technical perspective, I'm wondering about our current customer service infrastructure. How scalable is our system, and are there opportunities for automation or AI integration?

Why it matters: Identifies potential for improving service efficiency without sacrificing quality Expected answer: Legacy systems with limited AI integration, scalability challenges Impact on approach: Would consider tech investments as part of the long-term strategy

• Regarding resources, what's our current customer service team capacity and budget allocation? Are there any planned changes or constraints we should be aware of?

Why it matters: Helps understand the flexibility we have in adjusting service levels Expected answer: Team at 90% capacity, budget constraints due to potential price reductions Impact on approach: Would focus on optimizing existing resources and processes