The cellular operator market is becoming increasingly saturated and competitive and, at the same time, customer rotation (defection to competing companies) is growing. Combined with limited customer retention budgets, these are the main factors stimulating the improvement of the effectiveness and targeting of retention campaigns. Our statistical analyses assist in rationally managing CRM budgets.

StatConsulting offers churn scoring models for post-paid subscribers whose contracts are about to expire. These models estimate the customer's tendency to resign in the next couple of months. By properly selecting the group of most worthy customers with high risk of resignation, it is possible to plan and carry out very effective retention campaigns.

We also offer churn models for customers without binding contracts or ones using pre-paid or mixed-type services. The churn problem in this segment is more complex due to the possibility of subscribers becoming active after longer periods of inactivity. We have broad experience in constructing churn models for pre-paid customers, analyzing the loyalty of this type of customers, and recommending target groups for retention campaigns.

By combining churn and customer value analyses we can design financially effective retention strategies. This is achieved by selecting the retention benefits individually for each subscriber, so that the cost of the benefits does not exceed the predicted profit from retaining the customer.

The main advantages of churn analysis are:

• decreased total cost of retention campaigns,
• increased effectiveness of the campaigns

while maintaining limited CRM budgets.

The additional benefits of Churn Analysis include:

• identification of factors influencing subscriber defection,
• assessing the effectiveness of available customer retention tools,
• selecting the optimal retention channel for a given customer profile and churn risk level.