1 - Churn definition
1.1 Mobile markets issues
• Mobile markets saturation
• Fierce mobile competition is increasing
• ARPU levels are still falling or stagnating
1.2 Defining Churn
• Churn definitions and types
• 2 major categories of churn: Involuntary & Voluntary churn
• Prepaid/post-paid churn and Rotational churn
• Churn comparison limits and costs
- churn tracking
- different definition and calculation lead to comparison difficulties
- customer value and customer segmentation
- reducing a high or a lower level of churn
2 - Churn landscape and analysis
2.1 Churn landscape
• Worldwide churn levels and trends
• Western Europe focus
- churn performance between operators and markets
- West-European churn levels
- performance in post-paid and prepaid
2.2 Churn analysis
• Churn is pervasive
• Churn is inevitable
• Churn is expensive: the loss of revenue, the cost of (re)acquisition
• Customer Lifetime Value (CLV)
• Churn is manageable: the increase of subscriber retention costs (SRC)
3 - Churn drivers
3.1 Deregulation and increased competition
3.2 Inadequacy between customer expectations and experience
• Price
• Handset renewal
• QoS
• Lack of carrier responsiveness
• Brand disloyalty
• Privacy concerns
• Lack of features
• New product or technology
• New competitors enter the market
• Billing or service disputes
4 - Minimizing churn
4.1. Churn management strategic approaches
• Offensive - continued expansion
• Offensive - predatory expansion
• Defensive - retention management
• Factors of effective churn management
4.2. Churn management tools and avenues
• Lock-in mechanisms
- contractual binding periods
- delay/price of cancellation process
- SIM-Locking and "locked" network provider settings
- handsets subsidies
- walled private garden
• Reactive management
- loyalty appeal campaigns
- parity campaigns
• Proactive approach
- data warehousing, mining, and visualization are key
- customer retention options
• Loyalty programs
- sponsorship
- clubs and chat rooms
- points and award programs
- preferred customer status
5 - Conclusions
• Churn prevention initiatives
• Major pitfalls in designing and measuring retention programs
- targeting customers having high churn problems and ignoring acceptance patterns
- targeting customers having high acceptance problems and ignoring risk patterns
- using offer acceptance rates as a measure of effectiveness
• Key issues in designing retention marketing programs
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