Abstract
This paper highlights the factors which contribute to the enormous differences
in the way prepay churn is measured. The paper also provides recommendations
to operators as to how they can more effectively measure and compare their
prepay churn performance with that of their competitors.
Specifically this paper:
- Provides a graphical comparison of the prepay churn levels reported by 16
international operators.
- Highlights key differences in how prepay churn is defined by different
operators.
- Identifies the components involved in the definition and measurement of
prepay churn and illustrates their relative prominence and how these variables
can be manipulated to deliver a reduced or inflated calculation of prepay
churn.
- Presents a cost effective methodology for effective calculation of prepay
churn and 'spin' in any given market, delivering comparable performance
benchmarks revealing operators' true customer retention performance.