Telecom Sector Churn Analytics Study: How Quantzig Helped a Renowned Client Efficiently Forecast the Attrition Levels of the Customers

Jan 13, 2018

The client: Telecom services provider

Area of engagement: Churn analytics

Despite the growing competition, service providers in the telecom industry are focusing on reinvesting in their network upgrades and digital advances to deliver a wide array of services to the customers. The telecom sector is primarily engaged in operating and providing access to facilities in terms of voice, data, text, and video. Moreover, businesses in the telecom sector are focusing on redefining their current business models to gain a competitive edge over their competitors. To deal with the issue of minimal revenue growth and tightening profit margins, telecom companies are revitalizing their operations and reducing complexity to encourage commercial offerings and improve the quality of the services rendered. Additional factors such as affordability of services and the rising demand for high-speed internet facilities will further contribute to the growth of the telecom sector.

Although the telecom sector is witnessing promising growth, owing to the presence of a considerable number of over-the-top players, some factors may influence the growth of the telecom sector over the next few years. Get in touch to find out how these factors will impact your business.

Rising competition from OTT services: Over-the-top players offer applications and streaming content directly to the customers with the help of internet services. In recent years, the players have shown their dominance even in the communication services such as messaging and voice. A recent survey also states that OTT services contribute to more than 80% of all messaging traffic. With the presence of a considerable number of players, the traditional network services providers are finding it difficult to stay relevant in the marketplace.

A radical decline in the voice revenue: The recent years have witnessed a gradual decline in the way of communication from the traditional voice and text to internet messaging. With the presence of WiFi, the use of internet messaging applications has increased; thereby, showcasing a radical decline in the voice revenue.

The presence of 5G network: In this competitive environment, the telecom sector is witnessing the entry of 5G service providers. The consumers are becoming more informed and are expecting agility in their network services. With 5G services offering ultimate browsing experience as compared to the current settings, prominent leaders are planning to offer 5G network solutions to meet the target requirements. This may turn out to be a challenge for the traditional service providers who specialize in offering 4G services.

Request a FREE proposal to gain detailed insights into the challenges, trends, and new opportunities that are set to impact the telecom industry.

To address such challenges and offer reliable solutions to the customers, organizations are utilizing churn analytics solutions. Churn analytics offers real-time information to the businesses in terms of the number of customers and their probability of attrition. It is mainly concerned about analyzing the customer behavior tendencies to determine the specific point when the customer no longer uses the services.

The Business Challenge

The client, a renowned service provider in the telecom industry, wanted to analyze the customer acquisition rates and devise effective strategies to retain the most profitable customers. The client also wanted to ensure possible measures to increase customer loyalty, and consequently increase customer revenue. With the help of a churn analytics solution, the telecom sector client wanted to develop a machine learning model to analyze customer acquisition costs and undertake short-term actions to reduce churn rates. The primary concern of the client was to understand the root cause of the attrition and redirect their marketing actions to encourage customer relationships.

Telecom Sector

The Solution and the Business Impact

Strategies we recommended based on our analysis to retain the most profitable customers and reduce attrition levels

The churn analytics solution offered by Quantzig assisted the telecom sector client to make short-term plans by promising special offers to retain the ideal customers. The client was further able to measure the feedback from the customers and address these queries to promote customer interaction and loyalty. Moreover, the churn analytics solution also helped the client effectively segment the customer based on their behaviors and redirect their marketing campaigns to reduce the probability of churn. The solution also sought ways for the client to determine the profitable customers and differentiate the churners from the non-churners segment.

Want to know more about the benefits of churn analytics? Request more information from our experts.

Churn Analytics Solution Predictive Analytics

The engagement offered by Quantzig helped the telecom sector client gain insightful knowledge on the behavior-based actions and social information of the customers. The solution also offered custom features to the customers who are more likely to churn. The solution also offered real-time information on how to determine the likeliness of clients abandoning the services.

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