Churn continues to provide a significant and costly challenge to the mobile industry. While some level of churn is inevitable, operators need to keep it to a minimum if they are to contain their costs of doing business.
In an attempt to find an effective means of reducing churn, mobile operators have adopted a number of different strategies and continue to seek fresh approaches. Many MNOs have introduced additional services that enhance or complement their basic communications services in the hope that these will engender greater loyalty and increase the stickiness of their services. Others have placed greater emphasis on improving customer service and customer experience.
In 2014 and 2015, the author published four MWP reports that looked at different approaches that had been adopted by MNOs in an effort to reduce the scale of the problem. These reports included case studies of operators that had employed multi-play, OTT partnerships, digital services or customer experience. The reports looked at approaches taken by operators in both advanced economies and in emerging markets, including Eircom, EE, Millicom, Telesom, TELUS, Tigo and Vodafone.
This report reviews the causes of churn and revisits the case studies examined by the earlier reports to establish which strategies have proved most successful in delivering further reductions in the level of churn or in maintaining low levels that had already been achieved.
2.1 Background to the Report
2.2 Report Content
2.3 Currency and Conversions
2.4 Further Questions and Feedback
3. Churn – The Continuing Challenge
3.2 Causes of Churn
3.3 Inclination to Churn
3.4 Customer Lifetime Value (CLV)
3.5 Churn Reduction Strategies
3.5.1 Getting the Fundamentals Right
3.5.2 Stickiness of Adjacent Services
3.5.3 Customer Experience
4.2 Eir (Eircom)
5. OTT and Digital Service Partnerships
5.2 Orange and Deezer, EE and Apple Music
5.2.1 Streaming Service
5.2.2 Churn and ARPU
5.3 Vodafone and Sky, Netflix and Spotify
5.4 Mobile Financial Services
5.4.2 Telesom ZAAD
5.4.3 Microinsurance from Tigo
6. Customer Experience
6.1.1 Churn and Customer Satisfaction
6.1.2 Business Performance