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Effective Strategies for Addressing Rotational Churn

This paper presents a substantial argument for a change in the way in which operators treat 'customer spin', sometimes referred to as 'rotational churn'. Specifically we make the case for excluding 'spin' from the calculation of new connections and churn and the re-categorisation of spinners as 'self upgraders'. The paper also provides recommendations to operators regarding measures they can take to improve the way in which they address rotational churn and overcome the customer anonymity problems it presents. Specifically this paper presents:

• a coherent case for the segregation of spin from churn in Mobile Operator KPI reports
• four strategic options for operators to consider when developing a policy to address rotational churn, detailing the costs and benefits to be considered when implementing these options.

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Table of Contents
1
Overview
1
2
Background
1
3
Understanding 'Spin'
2
3.1
Spin Defined
2
3.2
Why Separate Spin from Churn?
3
3.2.1
Spin does not measure the rate of customer loss
3
3.2.2
Spinning is an Act of Loyalty not Disloyalty
3
3.2.3
Spin is Best Described as a 'self upgrade'
3
3.2.4
Spinners Have Different Motives/Characteristics
4
3.2.5
Causes/Challenges Differ to those of Churn
4
3.2.6
Churn Analysis Undermined
4
3.2.7
Misallocation of Retention Resources
4
4
Calculating & Segregating Spin
4
5
Spinner Identification & Tagging
5
5.1.1
Aperio
5
5.1.2
Idiro Technologies
5
6
A Spin Reduction Strategy?
6
6.1
The True Cost of Spin
6
6.2
Spin Causes, Prevention & Remedies
7
6.2.1
Desire for a Better Handset
8
6.2.2
Desire for a New Number
9
6.2.3
Desire for Old Number
9
6.2.4
Lack of a Visible Competitive Upgrade Policy
11
6.2.5
The Presence of Spin Inducing Offers
11
6.2.6
Over-reliance on Third Party Channels
11
6.2.7
Over Exposure to Spin Sensitive Segments
11
6.2.8
Customer Reported Spin Factors
11
7
Conclusions
13