Customer Churn - Telecommunications
Customer churn is a major issue for most telecommunications companies.
With number portability reducing stickiness, and aggressive pricing
wars, marginal profits are leading to poor economic service models.
Carriers need to be able to analyse at least 12 months of customer
data to identify those customers more likely to churn. Decisions
can then be made as to what measures to take, what marketing programs
to use, and services to offer to retain these at-risk customers.
- Identify customer call patterns and usage habits to establish
baselines, changes, trends
- Define customer profitability
- Determine the impact of price/offering changes on customer usage
- Identify CRM drivers/events that significantly impact customer
call patterns and usage behaviour
Most current BI solutions lack the processing power or database
capacity to run CRM analyses quick enough, or with enough historical
data, for the carriers to make proactive, well-informed decisions
around churn management.
For instance, one major wireless carrier uses Business Objects
for CRM analyses on 1.4 TB of data, with 72 GB of daily updates.
This application is located on an Informix XPS data warehousing
platform. Query times take up to 12 hours, and due to database capacity
constraints, the query can only run against three months of data,
insufficient to identify a true trend.
This is presenting a barrier to the carriers ability to respond
proactively to at-risk-customer activity.
The carrier implemented a Netezza
Performance Server [NPS] system to handle complex CRM
analyses of its CDRs.
The NPS data warehouse appliance now supports comprehensive customer
and financial analyses against 24 months of data, in less than 15
minutes. 20 times faster than the carrier’s legacy system.
Any churn threats are quickly and proactively identified, along
with customer service
problems and trends and up-sell opportunities.
This will translate into substantial savings in retained customer
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