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20th August 2008
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Home » Maximising Wireless Profit Program » 2007 » Churn Prevention Strategies » 

Strategies to Minimise Involuntary Churn

May 2007 (24 pages)

In this report we will quantify the size of the issue and the impact of involuntary churn within mobile operators. The report looks at both pre-paid and post-paid involuntary churners, what their respective drivers are and how operators can develop strategies to minimise their impact on operations.

This report will specifically examine:

  • How different operators use changing measures and criteria to define the point at which they terminate (or involuntarily churn) their customers.
  • What is the scale of involuntary churn for operators in differing phases of market development?
  • Is involuntary churn purely about bad debt and fraud? Customers can, simply speaking, be considered bad debtors - however there may be many aspects that contribute to involuntary churn and not all of them may be detrimental to the operator.
  • The drivers of involuntary churn and what risks each of them presents to a mobile operator.
  • How approaches to minimising involuntary churn encompass many functional and process areas and what their relative importance is in defining a strategy for involuntary churn.
  • Challenges associated with developing a strategically integrated approach to controlling involuntary churn and the benefit of involuntary churn awareness.

Price: EUR 2,500.00 / GBP 2,000.00

if you would like learn more about this report, or our other work in this topic area and how to subscribe, please contact us

Table of Contents
1Overview1
2Introduction2
3Understanding Involuntary Churn3
3.1Churn Definitions3
3.2Operator Measures of Involuntary Churn3
3.3The Scale of the Problem5
3.3.1Post-paid Trends5
3.3.2Quantifying Involuntary Churn7
4Drivers of Involuntary Churn9
4.1Drivers Overview9
4.2Credit Levels9
4.3'When Good Customers Go Bad'10
4.3.1Billing10
4.3.2Data Services10
4.3.3Roaming11
4.4Revenue Assurance and Debt Management12
4.4.1Level of Acceptable Debt Write-off12
4.5Strategic Change in Customer Base12
4.6Economic Conditions13
5Minimising Involuntary Churn14
5.1Debt and Credit Management14
5.1.1Collection14
5.2Risk Models15
5.2.1Competing Risks15
5.3Fraud Control16
5.3.1Technical Fraud16
5.3.2Subscription Fraud17
5.3.3Handset Fraud17
5.4Prepay Real Time Control17
5.5CRM17
5.5.1Proactive Customer Retention Strategies17
5.5.2Improvements in Channel Sales18
6Taking an integrated approach19
6.1Strategic challenges19
6.2Revenue Assurance20
7Findings and Recommendations23