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Mobile Telco Churn: Managing Fickle Customer Loyalty

Mobile Telco Churn Managing Fickle Customer Loyalty Many of today's mobile telecommunications companies are doubling loyalty and retention budgets but fall short vwhen it comes to churn management programs. Here's how proactive retention initiatives decrease churn while increasing profitability. Contributors to Churn Churn is a cost of doing business - but it doesn't have to be so costly. Fraud or Service Quality New $ Price х Billing Errors Privacy Issues Competitor Rates of Churn 17. The average mobile customer switches service providers months 44% 27 of customers switch providers each year months Prepaid customers last 17 months every 27 months Why Battle Churn? 10x It is more costly to find and add a customer than to maintain and grow an existing one. up to 7% $200- 600 Churn rate per month Cost per churn event Reacquisition cost: 10x cost of churn event OO 6 (+50% Marketing budgets for customer retention will increase more than 50% by 2015 How Big Data Can Help By mining unstructured data, we can predict the level and likelihood of customer churn-with 60% accuracy-and give the carrier an effective roadmap for countering churn and retaining the most profitable customers. 35% 61% For one U.S.-based telecommunications firm, Alacer found that just 35% of customers delivered 61% of monthly cumulative profit. Alacer created churn predictors that triggered proactive marketing efforts, helping retain these profitable customers. SOURCES Strategy Analytics, "Wireless Operator Performance Benchmarking Q4 2011" http://www.gartner.com/newsroom/id/1929014 Become proactive. Learn how Alacer can improve your profitability. =Alacer ACCELERATE.

Mobile Telco Churn: Managing Fickle Customer Loyalty

shared by peachiedog on Jun 16
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Marketing programs for wireless carriers are increasingly focused on customer retention. Here's why battling churn is so important - and how big data can help.

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