Academic

A Case Study Approach:

Retaining customers with high churn risk is one of the toughest challenges in the telecommunication industry today.  The annual churn rate range for businesses in the telecommunication industry is 20% to 40%.In order to better manage high churn, companies need to understand the factors pertaining to customer churn.

We provide an overview of the research in customer churn analysis in the telecommunication industry and a framework for churn analysis. Methods for identifying the final churn model, together with the key factors that contribute to churn are presented.

Based on our churn analysis results, we describe how we develop a retention plan that may reduce churn and increases the business profitability. Different budgets were allocated to different customer segments, based on the customer segment spend.

An illustration of the effects of the marketing retention strategy, together with a demonstration of a “What-if” tool to help the business make decisions with respect to the management of churners for revenue maximization.