Mobile Churn Management - The Golden Opportunity?
IDATE, August 2008, Pages: 55
Retaining customers is one of the most critical challenges in the maturing mobile telecommunications service industry. This report addresses what is the next major battle for mobile operators. It defines what mobile churn is and establishes key issues in minimizing churn and achieving optimum customer loyalty and retention strategies
Key questions
- Why did Churn Management take a strategic dimension among mobile operators?
- What are the costs and causes of churn?
- How to tackle customer churn?
- What are the main actions to leverage customer loyalty and reduce churn?
1. Introduction
1.1. Mobile markets are close to saturation in advanced economies
1.2. Fierce mobile competition is increasing
1.3. ARPU levels are still falling or stagnating
2. Defining churn
2.1. Churn definitions and types
2.1.1. Two major categories of churn
2.1.2. Churn comparison limits and costs
2.2. Churn landscape and analysis
2.2.1. Worldwide churn levels and trends
2.2.2. Churn analysis
2.3. A multitude of churn drivers
3. Minimising churn
3.1. Churn management strategic approaches
3.1.1. On the offensive - continued expansion
3.1.2. On the offensive - predatory acquisition
3.1.3. On the defensive - retention management
3.1.4. Factors of effective churn management
3.2. Churn management tools and avenues
3.2.1. Lock-in mechanisms
3.2.2. Reactive management
3.2.3. Proactive approach
3.2.4. Loyalty programmes
3.2.5. Wrap-up/ conclusion
List of Tables & Figures
Table 1: Competitive intensity in EU5
Table 2: Examples of switching costs for mobile telephony in France
Table 3: Overview of delays in MNP processes in Western Europe
Table 4: Comparison of national baseline situations
Table 5: Overview of customer retention tools
Table 6: Overview of handset subsidy policy in South Korea
Table 7: A1 retention propositions
Figure 1: Mobile subscribers net additions in EU27
Figure 2: Mobile penetration as % of population in EU27
Figure 3: Selected ARPU trends of Vodafone Western European subsidiaries
Figure 4: What is happening in Western European mobile markets?
Figure 5: Taxonomy of churn
Figure 6: Resulting growth of average subscriber tenure after 1% reduction in annual churn rate
Figure 7: Worldwide net monthly churn rates by region
Figure 8: Net monthly churn in the world
Figure 9: Monthly blended churn rates in UK
Figure 10: Churn levels in UK and the Netherlands compared with Western European average
Figure 11: Monthly blended churn rates in Spain
Figure 12: Monthly blended churn rates in the Netherlands
Figure 13: Monthly blended churn rates in Germany
Figure 14: Monthly blended churn rates in the USA
Figure 15: Blended versus prepaid churn rates for Vodafone group subsidiaries in Western Europe
Figure 16: Blended versus prepaid churn rates for Orange Group subsidiaries in Western Europe
Figure 17: Orange subsidiaries monthly churn rates in Western Europe
Figure 18: Vodafone subsidiaries monthly churn rates in Western Europe
Figure 19: T-Mobile subsidiaries monthly churn rates in Western Europe
Figure 20: Churn reduction is a high priority objective to increase profitability
Figure 21: Resultant incremental CLV with different hypotheses of churn reduction and ARPU level
Figure 22: Resultant incremental Customer Life Value with different hypotheses of churn reduction and different ARPU level
Figure 23: General pattern for mobile distribution
Figure 24: Comparison between churn rates and SAC/SRC for selected Western European MNOs
Figure 25: Cumulated mobile ported numbers as % of total mobile customer base
Figure 26: Taxonomy of churn and reasons for churning
Figure 27: Gap between customer expectations and experience and MNO objectives
Figure 28: Learn, earn or churn - the steps towards customer loyalty
Figure 29: Effective customer value management
Figure 30: Levels of churn prevention initiatives
Figure 31: The customer lifetime cycle
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