Home » Maximising Wireless Profit Program » 2003 » Churn Prevention Strategies in Cellular Markets/CRM » Bouygues Telecom: Evolution of Upgrade and Loyalty ProgramsJune 2002 (28 pages)
Handset subsidies for contract customers have long been a feature in this market together with service provision, and both factors have conspired to stimulate churn levels with customers aware that they can easily avail of new handsets by swapping operators every 18 or 24 months, so long as they are prepared to lose their number.
Churn analysis carried out by Bouygues Telecom suggests that as much as 30% of the voluntary churn in the contract base is caused by the desire for a better handset. The company started to address this problem as early as 1997 with the introduction of a loyalty program based on handset replacement.
In the sections below we look at the way Bouygues Telecom handset replacement programs have evolved over the years. We also analyse the way the company has managed to improve churn rates through the improvements in the efficiency of its proactive and reactive retention activities.
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1.1 Background 1
1.2 Customer Loyalty in the Organisational Structure 2
1.3 Retention Strategies 3
1.4 Optimisation of the Retention Focused Channels 3
1.5 Evolution of Bouygues Telecom Loyalty Programs 5
1.5.1 Avantages 5
1.5.2 Idylo 6
1.5.3 Current Loyalty Program 6
1.6 Churn Reduction Impacts 9
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