Churn Prediction and Mitigation

The telecom industry continues to face growing pricing pressure worldwide. While regional differences apply, wireless penetration is reaching a saturation point across multiple markets. In addition, the longstanding ability to differentiate products and services based on handset selection and network quality is disappearing, and product lifecycles are shortening. Simultaneously, wireline businesses are facing increasing competition from cable operators and a rising risk of disruption from OTT players. All of these powerful trends are forcing telecom companies to respond through more competitive offers, bundles, and price cuts.

Given these challenging industry dynamics, managing the customer base to reduce churn should be among any senior telecom executive’s highest priorities. And our work with telecom companies around the world reveals that those companies that implement a comprehensive, analytics-based approach to base management can reduce their churn by as much as 15%.

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