Point of Churn Best Practice

Point of Churn Best Practice published by Mobile Market Development Ltd in April, 2009. This report consists of 41 PAGES and the price starts from US $ 3500.

Introduction

Abstract

Customer churn is an inevitable part of the mobile market and in a fully competitive market, always will be, but with churn resting at levels of 20% - 40% in many mature, competitive markets, operators need to find ways to reduce or mitigate the financial impact, especially in a period of economic downturn. The point of churn (notice given on a contract or request to port a number) is a critical moment - if the MNO can save a higher proportion of its customers about to defect than its competitors then, given the small number of new mobile customers available, it will make a significant contribution to increasing market share, with all the attendant benefits to stakeholders that brings.

It is not enough though just to increase retention effort across the board as this will serve to increase costs the retention effort must be carefully directed and designed to save those customers that represent the greatest potential future value (while letting those that deliver marginal or negative profits move to competitors).

This report highlights the tactics and strategies which operators can deploy to reduce customer loss at the point of churn. It examines the factors which influence customer save rates and highlights the best practices that have enabled selected MNOs to retain the majority of their customers when they reach the ' point of churn' . The report provides concrete illustrations and recommendations that MNOs should consider to optimise their performance in this increasingly important area.

Table of Contents

• 1. OVERVIEW
• 2. INTRODUCTION
  • 2.1. Background to the Report
  • 2.2. Currency and Conversions
• 3. CHURN IN MATURE MARKETS
  • 3.1. The Size of the Churn Problem
  • 3.2. Growing Retention Costs
  • 3.3. Why Customers Churn
    • 3.3.1. Customer Care
    • 3.3.2. Long Contracts and Penalties
    • 3.3.3. Tariffs and Device Costs
    • 3.3.4. Devices
    • 3.3.5. Billing and Service Disputes
    • 3.3.6. Valuing Existing Customers
    • 3.3.7. Service Quality
    • 3.3.8. Operator Perceptions vs. Customer Realities
  • 3.4. Mobile Number Portability
  • 3.5. Proactive vs. Reactive Retention
    • 3.5.1. Evolution
    • 3.5.2. To Save or Not to Save?
  • 3.6. Proactive Retention
  • 3.7. Reactive Retention
• 4. RETENTION AT THE POINT OF CHURN
  • 4.1. Realistic Save Targets
  • 4.2. Best Practice Case Illustration I - Vodafone UK
  • 4.3. Best Practice Case Illustration II - 3 UK
  • 4.4. Best Practice Case Illustration III - O2 UK
  • 4.5. Vigilant Churn Tracking
    • 4.5.1. Case Illustration I: Research Based Feedback:
    • 4.5.2. Case Illustration Il: Web Based Feedback
  • 4.6. Further Foundations for Efficient Retention
    • 4.6.1. Customer Centricity across Customer Touch Points
    • 4.6.2. Progressive Complaint Handling
    • 4.6.3. Beware: Churn Barriers that Stimulate Churn
    • 4.6.4. Record Customer Engagements Accurately
    • 4.6.5. Retention Agent Empowerment
    • 4.6.6. Handset Subsidies & Tariff Discounts
    • 4.6.7. Tariff Optimisation
  • 4.7. Reactive Prepay Churn Measures
• 5. RECOMMENDATIONS

Related Reports