The Telco Training Academy


Telco Churn


The telecommunications industry goes through major cycles, just like any other industry. It is interesting, though, that these cycles occur at different times and at different rates in different countries (because of the way deregulation and competition are handled).

If you are in one of the early deregulated markets, then you went through a very painful process of learning how to deal with new conditions as they arise. If you are lucky enough to be in a market where deregulation has proceeded at a slower pace, then you have the advantage of being able to anticipate much of what is going to happen.

Telco churn that is, the sudden defection of large numbers of customer to competitors is one of the major growth events in the life of a telco as the market matures. All wireless and long distance companies around the world have already experienced, are currently dealing with, or will soon encounter the churn phenomenon as their markets mature.

A telco that is new to churn has many lessons to learn before management of churn becomes a normal part of doing business.

Special Challenges - Churn

For a telco that has never had to deal with massive churn before, the situation presents unique opportunities. When churn conditions are right, there is no way that you can continue doing business as you always have. When churn comes, the entire organization has to change.

Churn, like all major market repositioning situations, is a challenge, not just to one department, person, or product, but is an assault on your entire company at all levels. To effectively deal with churn, you need to take an holistic view of what causes it and what to do about it.


Churn Solution / Value Proposition

TTA's Telco Churn and Market Share Erosion Solution provides:

  • Complete, exhaustive diagnosis of past and present churn activity

  • Comprehensive strategies for effectively addressing churn and aggressively neutralizing competitor advantages

  • Highly accurate forecasts of future (untreated and treated) churn activity

  • Comprehensive training of marketing, sales, customer service, and advertising teams in the use of advanced analytics and best practices techniques in the treatment of churn

  • Complete organizational and operational overhaul to optimize for churn management

  • Complete audit and plans for development of comprehensive churn management systems


Churn Management Solution

TTA has more experience helping telcos understand and develop effective techniques for management of telco churn than any other organization of our type. Our approach presents a comprehensive view of the churn situation from all perspectives and provides the information you need to make changes in your:

  • Strategies

  • Marketing programs, campaigns, and promotions

  • Pricing strategies

  • Channel assignments

  • Product alignments

Our Churn Management Solution makes use of our best practices in all areas of your organizational and operational environment to minimize the damage and maximize the long term benefit.


Churn Analytics

TTA has developed an extensive assortment of churn analytics, designed specifically for telcos in the wireless and long distance industry who face major customer defection problems. Our churn analytics approach includes the development of:

  • Exhaustive customer behavior-based segmentation

  • Segmentation of customers based on customer value, customer wants & needs, loyalty, channel preferences, media preferences, churn likelihood, churn reasons, and core telco requirements profile

  • Market research and detailed qualitative analysis

  • Customer valuation modeling

  • Customer prediction modeling

  • Customer propensity to churn modeling

  • Customer loyalty profiles (which customers are loyal and why) and what you need to do to make the best customers remain loyal

  • Financial and market share impact analysis on your most likely churn scenarios

Our churn analytics are unsurpassed in the industry. No one specializes in telco analytics of this sort the way we do, and the results are proof or our claims.


Churn Disciplines

Complementary to development of extensive churn analytics is our extensive application of best practices analysis in the areas of your organization, operations, budgets, and I/T systems. Our comprehensive review of your business disciplines and I/T disciplines, as they relate to your overall churn management capabilities, provide the second ingredient needed to put together a churn management strategy that will help you establish yourself where you want to be in the marketplace.

Our audit, review, and recommendations in the area of disciplines will include:

  • Strategy and vision review

  • Brand management

  • Customer intelligence

  • Customer management

  • Product management

  • Program, campaign, and promotion

  • Channel management

  • I/T practices, systems, and support


Churn Strategies

The ultimate objective of our efforts is a comprehensive strategy to realign your entire organization where everyone is addressing the churn situation in an efficient and cooperative way. Our recommendations will include:

  • Effective pricing positions

  • Effective marketing program, campaign, and promotion plans

  • Effective realignment of your departments and procedures to better address churn

  • Establishment of ongoing responsibilities for tracking and managing churn

  • Creation of analytics and metrics to monitor churn activity and program effectiveness

The TTA Churn Solutions present a complete understanding of the churn situation and a comprehensive roadmap for an organization that can deal with it. This complete roadmap can include:

  • Computer systems development recommendations, requirements, and implementation plan

  • Organizational adjustment recommendations, specifications, and implementation plan

  • Training plans for marketing, sales, advertising, and customer service staff in the effective handling of churn situations

  • Best practices coaching for those members of your team earmarked as being your churn management experts