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5th February 2012
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Home » Maximising Wireless Profit Program » 2003 » Churn Prevention Strategies in Cellular Markets/CRM » O2 Germany: Customer Retention through Contract ExtensionJune 2002 (6 pages)
Extended 24-month contracts have been the norm in the German market for several years. Shorter 12-month and 3-month contracts are available from O2 (Formerly Viag Interkom) and T-Mobile. In practice, few customers select 12-month contracts because minimal handset subsidies are available with these contracts. In contrast, substantial subsidies are offered to customers entering into (or extending to) a 24-month contract. The shorter contracts account for less than 5% of all contracts.
Longer contracts ensure that most customers are 'under contract' and this helps to ensure that churn is maintained at below 20% across the German postpay contract market. The subject of this case study, O2, has a contract churn rate of approximately 18% and this is similar to the level of churn experienced by its competitors in the German market.
Price: EUR 1,250.00 / GBP 1,050.00 if you would like learn more about this report, or our other work in this topic area and how to subscribe, please contact us 1 O2 Germany - Customer Retention through Contract Extension 1
1.1 Background 1
1.2 The O2 Experience of Contract Churn 1
1.3 Dealer Channel Contract Extensions 2
1.3.1 Contract extension offers 2
1.4 Customer Care Channel Contract Extensions 3
1.5 Improving the Contract Extension Process 3
1.5.1 Reacting to Cancellation Notices 3
1.5.2 Proactive High Value Customer Contract Renewals 4
1.6 Improving Contract Extension Performance via Campaign Management 4 |
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