TelecomHype

Cross post from telecompk.net.

Churn refers to the tendency of Internet and cell-phone subscribers to switch providers. It is the most common problem faced by telecommunication industry globally.

This post discusses on some of the churns faced by the telecom operators in Pakistan, their causes and how to detect and treat them.

Competition stimulation

The customer changes from operator to take advantage of an attractive offer. Like we have in our industry the acquisition trend. The first step to deal with this is by understanding the marketing campaigns of competitors and their impact on churns and then launching loyalty campaign to counterattack the competitor’s offer.

Internal churn

The customers migration for post-paid tariff plan to pre-paid tariff plan is sometimes seen as a churn. This is one common habit in our industry driven by needs of customers and financial constraints. Such migrations should now be considered as a churn but a record of reasons for such movements must be maintained.

Dissatisfaction with post-sales service

This includes all dissatisfactions with the post-sale services. e.g. billing complaints, technical issue complaints. This can be dealt with careful monitoring the complaints call to customer care centers and proactively resolving it.

Dissatisfaction with quality of services

This is mostly related to network coverage of the operator. e.g. call drop, voice distortion, cross talk etc. Improving on both the indoor and outdoor coverage will greatly reduce the chances of such a churn.

The figure above shows critical points in churn management along the customer life cycle.

[Reference: Churn Types - Prepaid and Postpaid a presentation by mmC Group]