Churn reduction consumer customers

12.05.2015  • Growth- & Value-Strategy

Client:
Austrian mobile network operator

Challenge:
Compared to competitors, the company’s churn rates were much higher and could not be compensated on the gross add side. The aim of the project was to identify and to conceive measures for improving the situation as well as to supervise and support the implementation.

Core issues:

  • Which measures could be taken to reduce the churn rate and which ones would offer the highest value proposition?
  • How could control of SRC and SAC be improved in order to increase the net adds?
  • Should contract extensions be addressed in a proactive way, and what would be a suitable proactive contract extension strategy?
  • How could the existing customer retention program be extended to become a state-of-the-art tool of communication?Our input:
  • Detailed analysis of the existing clients in terms of churn risk
  • Survey of the churn scoring model and the customer communication along the customer life cycle
  • Generation of ideas for churn reduction measures including assessment, prioritization and preparation of decisions
  • Detailed elaboration of the resolved measures
    Supervision of implementation and support of implementation

Results:

  • Considerable churn reduction already at the end of the project (i.e. within 3 months)
  • Improved internal understanding with regard to churn reasons
  • Customer communication along the entire life cycle with a strong focus on the segment

Increase of efficiency thanks to higher degree of automation in campaign selection and implementation