Telecom Review

November, 2007

Stop Customer Churn: A Solution Designed for Fixed-line Operators

Leading cable operators in Europe are increasingly challenged by the loss of fixed-line customers. Different from loss of market share (call time) incurred by alternative call-by-call providers, it means loss of relationships with customers. Our analysis shows that from Q1 2006 to Q1 2007, the customer base of 18 major fixed-line operators in Europe decreased by 7.5% on average, and even a two-digit percentage for some of them. Though this problem has existed for a long time, few solutions have been found.

Roland Berger has developed and tested a systematic and effective solution to help fixed-line operators minimize the customer churn rate. The key is to adopt preventive measures before customers think about network migration. The solution also suits customers who have applied to quit the network.

1.Develop (optimize) the model for predicting customer churn
2.Design solutions to retain customers
3.Choose right channels
4.Ensure incentive modes to match target customers efficiently
5.Deal with customers who have quitted the network