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24th July 2008
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Home » Maximising Wireless Profit Program » 2007 » Churn Prevention Strategies » Strategies to Minimise Involuntary ChurnMay 2007 (24 pages)In this report we will quantify the size of the issue and the impact of involuntary churn within mobile operators. The report looks at both pre-paid and post-paid involuntary churners, what their respective drivers are and how operators can develop strategies to minimise their impact on operations.
This report will specifically examine:
- How different operators use changing measures and criteria to define the point at which they terminate (or involuntarily churn) their customers.
- What is the scale of involuntary churn for operators in differing phases of market development?
- Is involuntary churn purely about bad debt and fraud? Customers can, simply speaking, be considered bad debtors - however there may be many aspects that contribute to involuntary churn and not all of them may be detrimental to the operator.
- The drivers of involuntary churn and what risks each of them presents to a mobile operator.
- How approaches to minimising involuntary churn encompass many functional and process areas and what their relative importance is in defining a strategy for involuntary churn.
- Challenges associated with developing a strategically integrated approach to controlling involuntary churn and the benefit of involuntary churn awareness.
Price: EUR 2,500.00 / GBP 2,000.00 if you would like learn more about this report, or our other work in this topic area and how to subscribe, please contact us
| Table of Contents |
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| 1 | Overview | 1 |
| 2 | Introduction | 2 |
| 3 | Understanding Involuntary Churn | 3 |
| 3.1 | Churn Definitions | 3 |
| 3.2 | Operator Measures of Involuntary Churn | 3 |
| 3.3 | The Scale of the Problem | 5 |
| 3.3.1 | Post-paid Trends | 5 |
| 3.3.2 | Quantifying Involuntary Churn | 7 |
| 4 | Drivers of Involuntary Churn | 9 |
| 4.1 | Drivers Overview | 9 |
| 4.2 | Credit Levels | 9 |
| 4.3 | 'When Good Customers Go Bad' | 10 |
| 4.3.1 | Billing | 10 |
| 4.3.2 | Data Services | 10 |
| 4.3.3 | Roaming | 11 |
| 4.4 | Revenue Assurance and Debt Management | 12 |
| 4.4.1 | Level of Acceptable Debt Write-off | 12 |
| 4.5 | Strategic Change in Customer Base | 12 |
| 4.6 | Economic Conditions | 13 |
| 5 | Minimising Involuntary Churn | 14 |
| 5.1 | Debt and Credit Management | 14 |
| 5.1.1 | Collection | 14 |
| 5.2 | Risk Models | 15 |
| 5.2.1 | Competing Risks | 15 |
| 5.3 | Fraud Control | 16 |
| 5.3.1 | Technical Fraud | 16 |
| 5.3.2 | Subscription Fraud | 17 |
| 5.3.3 | Handset Fraud | 17 |
| 5.4 | Prepay Real Time Control | 17 |
| 5.5 | CRM | 17 |
| 5.5.1 | Proactive Customer Retention Strategies | 17 |
| 5.5.2 | Improvements in Channel Sales | 18 |
| 6 | Taking an integrated approach | 19 |
| 6.1 | Strategic challenges | 19 |
| 6.2 | Revenue Assurance | 20 |
| 7 | Findings and Recommendations | 23 |
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