
Digital Marketing – Churn Reduction
Background One of the biggest issues facing one of the four largest wireless carriers in the U.S. in continually driving growth for their Prepaid business unit was a churn rate running between 6-6.5%. Research showed that the two biggest reasons given by customers for terminating their service and moving to another carrier were finding a perceived better deal elsewhere (37%) and poor coverage (32%). While little could be done to solve the coverage issue, management felt that overcoming the price/value perception would go a long way towards reducing churn and increasing customer lifetime value. The Challenge Past churn save efforts implemented by the Prepaid team to entice customers to stay longer had provided some valuable insights. They had shown that conditional offers were more effective than immediate offers in impacting…