Telecom Churn
- 1. CHURN MARKET SURVEY REPORT 1. 40% of customers globally plans to switch provider in next 12 months 2. Key factors affecting voice service: 1. Operators cost and billing (49%) 2. Network and service quality (25%) 3. Key factors affecting data service: 1. Slow download speeds (20%) 2. Data throttling (17%) 3. Applications that don’t work (16%) 4. Report by Ovum forecasts: ARPU will continue to decline across all markets.
- 2. OBJECTIVES 1. Mitigate rising churn rate at Mobicom 2. Save high revenue customers Current strategy: Retaining customers on Reactive basis Proposed Strategy: Proactive retention programs through usage enhancing marketing programs a. Proactive Retention Strategies b. Usage based promotions - for both voice and data. c. Rate Plan Migration d. Bundling strategy e. Artificial churn/spinners or serial churners With support: marketing head and retention manager
- 3. TOP LINE QUESTIONS OF INTEREST ~ Senior Management 1. Top five factors driving likelihood of churn at Mobicom 2. Validation of survey findings. 1. Whether “cost and billing” and “network and service quality” are important factors influencing churn behaviour. 2. Are data usage connectivity issues turning out to be costly? 3. Recommend rate plan migration as a proactive retention strategy?
- 4. TOP LINE QUESTIONS OF INTEREST ~ Senior Management 4. How to use churn model for prioritize customers for a proactive retention campaigns in the future? 5. What would be the target segments for proactive retention campaigns? 6. Mobicom would like to save their high revenue customers besides managing churn. Which subscribers should prioritized?
- 5. Flow of Analysis 1. Understanding Data Quality 2. Variable Profiling 1. Continuous Variables 2. Categorical Variables 3. Data preparation 1. Outlier Treatment 2. Missing value imputation 3. Derived variables 4. Dummy variable creation 4. Model Building (Logistic Regression) 5. Creating customer segments
- 6. TOP LINE QUESTIONS OF INTEREST ~ Senior Management Top five factors driving likelihood of churn at Mobicom When family have 7 unique subscriber ~ Roll out family bundles Number of days since last retention call ~ Address grievances at the earliest Ethnicity ~ Special plans for people Asian ethnicity Area ~ Roll out new plans for people from North West/Rocky Mountain Area and South Florida Area
- 7. TOP LINE QUESTIONS OF INTEREST ~ Senior Management Impact of “cost and billing” on influencing churn behavior Finding: Not important (have almost 0% impact on churn behavior) Impact of “network and service quality” on influencing churn behavior Finding: Number of days since last retention call is important. Thus, address grievances at the earliest to mitigate churn behavior. Impact of “data usage connectivity” on influencing churn behavior Finding: Only 10%-15% customer make data calls. Thus, improve data connectivity and service. Note: Lack of data availability
- 8. TOP LINE QUESTIONS OF INTEREST ~ Senior Management Recommend rate plan migration as proactive retention strategy Finding: Weak impact on churn behavior. Thus, not recommended. Only case to case basis consideration may be done. Recommend churn model to prioritize customer for proactive campaign in future Finding: Yes, recommended Use model to predict customer predict churn rate & extract target customer list Target Segment for proactive retention campaign Shown in BOLD Score vs. Revenue High Low Medium High 1673 1083 1365 Low 1765 3049 2021 Medium 2297 3634 2538