The churn rates in the telecom industry are constantly on the rise, mostly due to increasing competition and elimination of switching costs. Customer loyalty in the telecom industry is almost extinct as service providers are battling to provide better service at a lower cost. To drive profitability, companies have to burn the candles at both ends by sweating blood to earn new customers and satisfying the existing ones to stay with them. The latter is evidently a more cost-effective option, which is why companies are adopting robust customer churn analysis solutions to retain profitable customers.
Acquiring New Customers Vs. Retaining Existing Ones in The Telecom Industry
The telecom giants in their early days were indulging in a fierce battle of reduced call rates, promotional offer, and compelling monthly plans to win over new customers. Later on, as the telecom industry approached its saturation point, companies realized the importance of reducing the churn rates. It costs hundreds of dollars in advertising and administrative expenses to acquire a single customer in the telecom industry. In contrast to that, when a single customer leaves, the company not only loses on the future revenues but also the resources spent to acquire the customer in the first place. Retaining the customer base also provides the company with opportunities to up-sell and cross-sell the products. For instance, the majority of the telecom companies have started a new offering called ‘Triple Play’ services to their customer combining TV, broadband, and phone services.
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How can Quantzig’s team of churn rate experts help vendors in telecom industry?
- Offer predictive churn modeling techniques to forecast the likely future behavior of the customers
- Help devise marketing automation tools to segment clients by a margin and adjust offers and solutions accordingly
- Provide a concise dashboard comprising vital user data such as monthly recurring charge, contract duration, handset prices, and number of active subscribers
Why Should the Telecom Industry Opt for Customer Churn Solutions?
The customer churn solutions from Quantzig offers predictive models that accurately forecast the customers most likely to churn so that proactive steps can be taken to prevent such event. The models assess the telecom traffic in real-time to detect changes in usage patterns and experience levels. Such data helps telecom service providers to boost Average Revenue Per User (ARPU) through personalized offers and tailored bundles.
Today, managers have access to a large stream of data, and decision-making on the basis of gut-feeling, the rule of thumb, and guesswork are largely eliminated with the advent of data analytics.
“Without big data analytics, companies are blind and deaf, wandering out onto the web like a deer on a freeway,” said a leading data analytics expert from Quantzig.
For more than 14 years, we have assisted our clients across the globe with end-to-end data management and analytics services to leverage their data for prudent decision making. Our firm has worked with 120+ clients, including 55+ Fortune 500 companies. At Quantzig, we firmly believe that the capabilities to harness maximum insights from the influx of continuous information around us is what will drive any organization’s competitive readiness and success. Our objective is to bring together the best combination of analysts and consultants to complement our clients with a shared need to discover and build those capabilities and drive continuous business excellence.