Question 1 Based on the above case study, Multichoice is said to have lost many customers. This has challenged management to be more innovative in identifying additional revenue streams. As a marketing student, know of the importance of retaining existing customers. Prepare an argument, using practical examples, in which you counsel Multichoice management on the importance of customer retention for the overall success of their businesses. Question 2 Based on your advice/ report provided in the question above, management has decided to conduct in-depth research on customer satisfaction. Q.2.1 Making use of practical examples, outline some benefits that can be derived by Multichoice making use of customer satisfaction surveys. Q.2.2 Customer satisfaction can also be measured using alternative approaches such as mystery shopping and the customer satisfaction index (i.e. interviews with customers). Discuss whether the use of a customer satisfaction index will be beneficial to Multichoice. CASE STUDY - IT'S NOT ALL DOOM AND GLOOM FOR MULTICHOICE The South African broadcaster has lost more than 100,000 customers, while many others are downgrading their packages. The rising cost of living coupled with more hours of load-shedding and high unemployment has led many consumers to terminate their pay TV subscriptions while others are downgrading to more affordable packages. In June 2023, MultiChoice reported that it had lost more than 100,000 subscribers at the end of March (2023), adding that customers are more selective when signing up to avoid periods of excessive load-shedding. MultiChoice has 9.3-million subscribers in South Africa (SA), 57% of whom are subscribed to cheaper packages such as Family, Access, and Easy View. The broadcaster said blackouts have hammered its SA subscriber base and activity levels, with a noticeable effect when load-shedding reaches stage 4 and above, "even when consumers have disposable income". The company's premium segment, which includes Compact Plus packages, recorded a 6% decline in subscribers to 1.3 million, but MultiChoice CEO Calvo Mawela said the losses are slowing. "It is plateauing. We managed to arrest [the decline] to reasonable levels," he said. The premium segment, which costs about R900 a month, has been on a downward trend for several months as consumers switch to international streaming platforms. However, Mawela said eight out of 10 people on streaming platforms have kept their DStv subscription. The hardest hit DStv segment is the middle market, which includes Compact, while the mass market continues to demonstrate room to grow, said Mawela. The mid-market has been the most exposed to the macroeconomic pressures." The changing mix of subscribers, combined with the lower level of subscriber activity, has resulted in monthly average revenue per user (ARPU) declining 5% from R269 to R256. As the SA business matures, MultiChoice is focusing on generating additional revenue streams in areas such as sport betting, insurance, and internet service to offset declining ARPU and margin pressure. MultiChoice will also launch the new-look Showmax after a partnership with international production group NBCUniversal Media. Showmax competes directly with Netflix, Disney, and Amazon Prime Video.