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TIM Italy: Reducing High Value Customer Churn

At the end of March 2002, TIM was the market leader with a customer base of 24.1 million, followed by Omnitel Vodafone with 17.7 million, Wind with 8 million and Blu with 1.9 million.

The absence of handset subsidies in the Italian market helped maintain churn rates at a relatively low level of around 12% per annum up to a couple of years ago. However, more recently, the increase in competition (Blu launched in May 2000) and the increase in market penetration have both contributed to an increase in churn rates.

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1	TIM Italy: Reducing High Value Customer Churn	1

1.1	Overview of the Italian Market	1

1.2	CRM within the Organisational Structure & Objectives	2

1.3	CRM Processes & Systems	3

1.4	Customer Knowledge	4

1.5	Customer Profiling	5

1.5.1	Customer Satisfaction	5

1.6	Customer Loyalty, Development and Retention Focus	6

1.7	Milleuna and Club Prime Loyalty Program	6

1.8	Customer Development	10

1.9	'Last Minute' Initiative	12

1.10	Measurement & Justification	13

1.11	Relationship Management	15

1.12	Future Developments	15

1.13	Competitor Loyalty Programs	16

1.13.1	Omnitel OmniOne Program	16

1.13.2	Wind Avenue Rewards	17

1.13.3	Blu Class Rewards Program	17