Business Case - Reduce Customer Churn

Unsatisfactory Services

Subscribers are pushed to churn when services are

• not provided as they are demanded
• not covering what is demanded
• not available to the potential consumer
• not available when and to the extent they are demanded

Unsatisfactory Quality

Subscribers are pushed to churn when the service quality is unsatisfactory in respect to

• the service itself and its use
• cost and billing
• application of terms and conditions
• frequency of incidents
• outage time / speed of repair

Unsatisfactory Relationship

Unsatisfactory communication and contact with the service provider will push subscribers to churn when:

• A customer with a concern does not get through to customer care, has to wait unduly long, or is passed on
• His issue or complaint is not taken seriously
• The response is unfriendly or indifferent
• He does not get help
• Or his privacy is being violated

Influencers are exerting a pull factor to churn:

• Influencers (media, social networks, friends and opinion leaders) set the level of expectation
• Influencers may instigate envy for handsets or services

Competitors lure the customer away

• Handsets, services offerings, rates and terms may be perceived as more attractive by a customer

Churn Push Factors

Factors, where the operator has almost everything under his control, have to be addressed to ensure the satisfaction of the customer in order to reduce churn.

Churn Pull Factors

The larger the discrepancy between the operator´s offering and the claims of the competitors and influencers, the higher is the vulnerability

• A competitive offering, perhaps uniqueness in offering and services, and fast moving improvements mitigate the influence