One of the telecommunication companies in Indonesia is experiencing a declining market share. Initially, it was suspected that the market was saturated, and the switching cost was low. Additionally, there is a symptom gap from the declining customer satisfaction index (CSI) internal company data from 7.58 to 7.53. The study hypothesized that the decline in market share was due to a potential decline in customer satisfaction. Customer satisfaction can be measured through experiences [1]. Customer experiences have become a top priority in telecommunications. Competition pressures have increased since two big players conduct an acquisition and merger. PT.XYZ was declining by -11%, and PT IST is expanding by 62%. This had hypothesis PT.IST aggressively attracted subscribers of PT XYZ and stole the share. It was found that PT XYZ’s average revenue per user (ARPU) is increasing by 1% while the number of subscribers is decreasing. 

There is a potential indication that it is hypothesized suggesting that the market share decline is attributed to the customers with lower ARPU, while current subscribers have more quality ARPU. Additionally, there is also hypothesized that company is implementing a pricing strategy such as price up, which could lead to customer dissatisfaction and lead the customer to switch to a provider that gives similar quality at a more acceptable price. The complaint about the network diminishing strengthens the issue. Previously customer chose PT.XYZ had two components: the quality of the network and brand equity. Moreover, lately, it was only brand equity.

It was emphasized from Net Promotor Score (NPS) data that apart from the decline in CSI, the significant number of promotors indicated that consumers keep recommending PT XYZ products related to brand equity. Even though customer feels dissatisfied, it keeps recommending the product because of their willingness or intention to influence others. NPS is frequently viewed as a reliable indicator of business growth. Zaki et al. [2] found no correlation between loyalty metrics and industry revenue changes. It is emphasized through studies by Grisafe [2], High NPS Scores do not ensure customer retention, and the metric can delude managers by diverting their attention from necessary actions such as retaining customers and determining their lifetime value. It concludes that the NPS needs to diagnose the factors effectively and have linear results for business growth. Zaki et al. [2] explained that the study conducted by Morgan and Rego [3] reveals that increasing the number of net promotors does not necessarily result in enhanced firm performance, given that promotors may not substantially increase their purchase or influence new customers. However, the researchers emphasized the importance of monitoring customer complaints as it provides insight into customer satisfaction as a valuable predictor of future business performance.

By focusing on customer satisfaction improvement, the company can understand and address the factors contributing to customer dissatisfaction and enhance the customer experience. Increased customer satisfaction and positive customer experiences can directly impact market share growth. Satisfied customers are more likely to become loyal, recommend the company to others, and exhibit high loyalty and retention. Moreover, the satisfied customers will indirectly affluence the new customer or customers who were already leaving the provider. However, it should be noted that customer satisfaction and market share growth only sometimes occur linearly. Other factors such as industry trends, market trends, and improvements in competitor product quality also influence the outcomes. Therefore, continuously monitor customer satisfaction, make strategic adjustments, and maintain a competitive edge to achieve sustained market share growth. Allowing customer satisfaction to decline is also detrimental to the company's performance and may contribute to further market share decline. 

Therefore, customer satisfaction is crucial to anticipate or prevent these phenomena and snowball into more market share loss and eventually declining ARPU. Furthermore, this study aims to examine the factors that lead to customer dissatisfaction and determine whether there is impact to market share decline and propose a business strategy to regain market share through customer experiences.

In response to the research questions, this study will adopt a comprehensive framework built upon the core of literature reviews. Citilci and Akbalik [4] emphasized the significance of assessing the dynamic environmental factors to establish competitive advantages in the industry. This study will employ PESTLE analysis, Five Forces Analysis and Competitor analysis. VRIO Analysis, Gap Analysis and Root Cause Analysis will be utilized to examine internal factors. By integrating findings from external and internal, the study will construct a SWOT analysis and TOWS analysis to identify internal strengths, weaknesses and external opportunities and threats. These will be a foundation for developing potential strategic choices [5].       

Companies must know their market position. Kotler and Keller [6] stated that Kotler perceptual maps as a tool to gain valuable insight into customer views and preferences. The study will identify the current position of PT XYZ's product or brand in the market while uncovering the underlying market expectations. Customer experiences play a pivotal role in regaining market share. According to Kotler et al. [7], satisfaction refers to an individual's emotional response after interacting with a product based on its perceived performance relative to their expectations. Kotler and Armstrong [8] highlight that a combination of products, services, information, and experiences is offered to a market to satisfy customers. Customer satisfaction positively impacts critical performance indicators, such as market share [9]. Rego, Morgan, and Fornell [3] study reveals that customer satisfaction becomes a significant predictor of future market share when switching costs are considered. Thus, Satisfied customers are likely to become loyal, making repeat purchases and sharing positive experiences as brand ambassadors. In contrast, dissatisfied customers switch to competitors and actively criticize the product, creating negative sentiment. Greater satisfaction and financial returns will be gained by focusing on Customer Lifetime Value [10].

Engaging market scenarios can be developed through scenario analysis. Scenario analysis helps businesses adapt to market dynamics [11]. Companies can increase their market share by acquiring new customers, expanding commerce with existing customers, and retaining existing customers [12]. Protecting market share is essential for maintaining a dominant position [7]. Regaining lost market share requires defensive strategies such as launching new products or strategically targeting competitors [7]. These strategies emphasize long-term profitability over short-term gains [5]. Strategies for marketing that increase customer satisfaction and financial returns.

Regardless of market share, quality is crucial for customers [13]. Successful strategies to gain market share include product differentiation, modification, and aggressive marketing campaigns [14]. Companies implementing strategic processes and distribution innovation practices attract more customers and achieve a higher market share. Customer satisfaction plays a significant role in determining market share [15]. This conceptual framework in Figure 1 provides PT XYZ with a clear path towards regaining market share lost by increasing customer satisfaction and enhancing customer experiences. These can be accomplished by analyzing external and internal factors, identifying underlying causes, and developing strategic recovery plans.

Figure 1: Conceptual framework to regain market share loses

This study uses a mixed-method approach, combining qualitative and quantitative techniques [16,17]. Qualitative methods help interpret phenomena, while quantitative methods involve numerical evaluation [17]. Semi-structured interviews are followed by a confirmatory phase using a questionnaire to collect primary data using an importance ranking scale to gain insight into the most critical factors for customers. Secondary data from sources like Annual Reports and Badan Pusat Statistik (BPS) data are also analyzed. The study aims to understand customer experiences, satisfaction factors, and reasons for churn. This approach will provide valuable insights to inform strategy and improve customer satisfaction for PT XYZ. 

The study will begin with 15 participants, aged 18 to 45, who are users of PT XYZ for exploratory research. Then, 100 respondents will be randomly selected for quantitative data collection using an online survey. The respondents must be current or past customers of PT XYZ and will be asked about dissatisfaction factors, churn, and switching preferences. The survey aims to identify the primary factors contributing to the decline in customer satisfaction at PT XYZ and the reason for leaving the company.

The interview transcripts' content analysis identified several root causes for the decrease in customer satisfaction at PT XYZ. Network, product, and channel variables emerged as the primary factors. The main reasons reported by respondents were signal instability and price increases, leading to higher consumer costs. In summary, although network and product play significant roles, it is essential to highlight that price is the primary source of dissatisfaction. The sample data suggests that PT XYZ has raised prices and is now perceived as costly.

Table 1 highlights the connection between decreasing customer satisfaction and market share at PT XYZ. It reveals that other factors related to non-customer experiences, such as advocacy, brand reputation, and situational conditions, affect PT XYZ's market share.

Figure 3 illustrates a relationship model demonstrating the indirect influence of customer experiences on non-related customer experiences. However, additional research is required to validate this model with structural equation modelling (SEM). SEM will analyze the association between attitudes and reasoning, as Tempelar et al. [18] suggested.

Market Perception

The analysis of customer perceptions using Likert scale ratings reveals that PT XYZ is perceived as the most expensive telecommunication provider but also offers high-quality services. The positioning of PT XYZ implies that the company may cater to consumers who place a high value on quality and are willing to allocate resources toward premium cellular services as illustrates in Figure 4. Maintaining customer expectations and delivering a value proposition aligned with this perception is crucial to sustaining positive customer satisfaction. The second finding was looking for a comparison to a competitor. The product quality is almost par, while in terms of pricing, it is lower. The study found that this would become a significant threat to PT XYZ. When the network quality is comparable to that competitor, the impact of the channel on declining satisfaction is insignificant. Additionally, the market is shifting towards price sensitivity, where customers expect lower prices without compromising quality. If a company recognizes customers' changing perceptions and preferences, there is a risk of losing market share to competitors, even with the competitors' aggressive actions. It emphasizes the need for continuous monitoring and adaptation to guarantee the company's continued competitiveness and responsiveness to customer demands. Paying Attention to these signals can substantially impact the market position and success of a business. Perceptual map can be used as guide telecommunication companies in strategic decision-making regarding pricing and positioning to enhance customer experiences.

Enhancing Customer Experiences

The strategic objectives in this study are to improve customer satisfaction and regain market share. The content analysis identified network (N), product (P), and channel (C) as the key factors contributing to customer dissatisfaction network (N), product (P) and channel (C). There are some suggestion strategies to increase customer satisfaction through customer experiences as explained in below:

Network Experiences 

To enhance competitive advantage, PT XYZ should invest in network infrastructure and expand coverage to achieve a robust network coverage. Allocating capital expenditure to areas where the competitor's low market share would strengthen the network's dominance. Rapid network optimization and integrated platform solutions should be implemented to enhance network experiences and address customer complaints effectively.

Figure 2: Root cause analysis declining customer satisfaction index

Figure 3: The variables of declining satisfaction to market share

Table 1: Root Cause Analysis of Market Share Losses

Product Experiences 

PT XYZ can offer aggressive acquisition packages with competitive prices and highlight its premium quality as a strong differentiating factor. Implementing a loyalty cashback program based on customer lifetime value can incentivize customer retention. Additionally, implementing a subscriber retention program with personalized offers based on customer lifetime value can help ringfence subscribers and enhance their loyalty.

Channel Experiences

Implementing a comprehensive customer experience platform (CX Platform) can effectively address major dissatisfaction factors, including network issues, product complaints, and channel problems. Additionally, providing differentiated services based on lifetime value can enhance customer experience and satisfaction.

Figure 4: Perceptual Mapping

Figure 5: Matrix for Regain market share

Lamb, Hair, and McDaniel [12] suggest three approaches for companies to increase their market share: acquiring new customers, expanding business with existing customers, and retaining them. This analysis focuses on regaining lost market share and protecting existing market share. It is crucial for a company to not only gain additional market share but also safeguard its current share to prevent erosion by competitors. The market share scenario matrix (Figure 5) helps identify whether the company needs to focus on gaining or protecting market share.

This matrix shows four combinations of strategies and proposed business strategies to regain market share by enhancing customer experiences. As held by market dominance, PT XYZ should conduct a defensive strategy to protect the current market share and deliver aggressive maneuvers attacking the opponent. According to Kotler et al. [7], One strategy for preemptive defense is to introduce a range of novel products or to focus on competitors across the market strategically. PT XYZ might launch a preemptive defense by increasing the quality and adding the inflow through acquisition, carefully targeting competitors’ weaknesses and measuring customer lifetime value.

This research advises PT XYZ to refrain from introducing aggressive offers with reduced pricing, despite the price being the leading cause of dissatisfaction. Implementing such a strategy would result in a reduction in revenue margin and a decrease in the ARPU of current subscribers. Instead, the primary advantage as a differentiator should be the quality of the service offered. To summarize the finding, PT XYZ should focus on preserving and enhancing customer experiences as its main competitive advantage. Prioritizing excellent network coverage and meeting customer needs will foster loyalty and attract new customers through positive word-of-mouth recommendations. Price concerns can be addressed by delivering superior value and quality.

The first finding, the decline in customer satisfaction at PT XYZ, can be attributed to network, product, and channel factors. Signal instability and price increases are the primary sources of customer dissatisfaction. While network and product play essential roles, price is the primary cause of dissatisfaction. The decline in customer satisfaction at PT XYZ impacts its market share. 

The second finding reveals that besides customer experiences related to network, product, and channel, other factors such as advocacy, brand reputation, and situational conditions also affect the market share of PT XYZ. Finally, to enhance customer experiences and regain market share, PT XYZ should prioritize network, product, and channel improvements. The business strategy should focus on both acquiring new market share and safeguarding existing market share. By implementing these strategies, PT XYZ can effectively address customer needs and protect its position in the market. 

There is suggestion for further research, The relationship model that explains how customer experiences indirectly influence unrelated customer experiences requires further validation. Conducting a structural equation model analysis can provide more insight into this relationship. Additionally, quantifying the elements or variables contributing to declining customer satisfaction through factor analysis can help understand their interrelationships.

Acknowledgment

The authors would like to extend their gratitude and acknowledgments to the Bandung Institute of Technology and MarkPlus, Inc for their valuable support in conducting this study. Furthermore, the authors would also like to express deepest gratitude to Allah SWT for His blessings and guidance throughout this thesis journey. Without His mercy and support, I would not have been able to complete this project. I realized, like many others before me, that this thesis could not have been completed without commitment and support from my husband and kids, the assistance of many devoted advisors, colleagues, and acquaintances.

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