Mobile Churn Management

Table of Contents

1. Introduction

• 1.1. Mobile markets are close to saturation in advanced economies
• 1.2. Fierce mobile competition is increasing
• 1.3. ARPU levels are still falling or stagnating

2. Defining churn

• 2.1. Churn definitions and types
  • 2.1.1. Two major categories of churn
  • 2.1.2. Churn comparison limits and costs
• 2.2. Churn landscape and analysis
  • 2.2.1. Worldwide churn levels and trends
  • 2.2.2. Churn analysis
• 2.3. A multitude of churn drivers

3. Minimising churn

• 3.1. Churn management strategic approaches
  • 3.1.1. On the offensive - continued expansion
  • 3.1.2. On the offensive - predatory acquisition
  • 3.1.3. On the defensive - retention management
  • 3.1.4. Factors of effective churn management
• 3.2. Churn management tools and avenues
  • 3.2.1. Lock-in mechanisms
  • 3.2.2. Reactive management
  • 3.2.3. Proactive approach
  • 3.2.4. Loyalty programmes
  • 3.2.5. Wrap-up/ conclusion

List of Tables & Figures

• Table 1: Competitive intensity in EU5
• Table 2: Examples of switching costs for mobile telephony in France
• Table 3: Overview of delays in MNP processes in Western Europe
• Table 4: Comparison of national baseline situations
• Table 5: Overview of customer retention tools
• Table 6: Overview of handset subsidy policy in South Korea
• Table 7: A1 retention propositions

• Figure 1: Mobile subscribers net additions in EU27
• Figure 2: Mobile penetration as % of population in EU27
• Figure 3: Selected ARPU trends of Vodafone Western European subsidiaries
• Figure 4: What is happening in Western European mobile markets?
• Figure 5: Taxonomy of churn
• Figure 6: Resulting growth of average subscriber tenure after 1% reduction in annual churn rate
• Figure 7: Worldwide net monthly churn rates by region
• Figure 8: Net monthly churn in the world
• Figure 9: Monthly blended churn rates in UK
• Figure 10: Churn levels in UK and the Netherlands compared with Western European average
• Figure 11: Monthly blended churn rates in Spain
• Figure 12: Monthly blended churn rates in the Netherlands
• Figure 13: Monthly blended churn rates in Germany
• Figure 14: Monthly blended churn rates in the USA
• Figure 15: Blended versus prepaid churn rates for Vodafone group subsidiaries in Western Europe
• Figure 16: Blended versus prepaid churn rates for Orange Group subsidiaries in Western Europe
• Figure 17: Orange subsidiaries monthly churn rates in Western Europe
• Figure 18: Vodafone subsidiaries monthly churn rates in Western Europe
• Figure 19: T-Mobile subsidiaries monthly churn rates in Western Europe
• Figure 20: Churn reduction is a high priority objective to increase profitability
• Figure 21: Resultant incremental CLV with different hypotheses of churn reduction and ARPU level
• Figure 22: Resultant incremental Customer Life Value with different hypotheses of churn reduction and different ARPU level
• Figure 23: General pattern for mobile distribution
• Figure 24: Comparison between churn rates and SAC/SRC for selected Western European MNOs
• Figure 25: Cumulated mobile ported numbers as % of total mobile customer base
• Figure 26: Taxonomy of churn and reasons for churning
• Figure 27: Gap between customer expectations and experience and MNO objectives
• Figure 28: Learn, earn or churn - the steps towards customer loyalty
• Figure 29: Effective customer value management
• Figure 30: Levels of churn prevention initiatives
• Figure 31: The customer lifetime cycle