This document summarizes a research presentation on customer churn management in Pakistan's telecommunication industry. It analyzes how four variables - service quality, customer loyalty, company image, and trust - affect customer churn. Regression analysis found that all four variables significantly impact churn, with trust having the greatest effect. The research helps telecom companies understand what causes customers to switch networks.

1. CHURN
MANAGEMENT
“Customer Churn Management in Telecommunication
Industry of Pakistan”
A research presentation by Syeda Rinam Fatima

2. Introduction
• Churn management is a terminology associated with “customer(s) moving from one bu
siness to another.”
• Churn management is one of the most important aspect of telecom network industry.
• The average churn rate is 2% a month of every service business.
• When a customer churn a business loses its future revenue and past investment on th
e customer.
• In this research we are evaluating churn management through 4 independent variables
named Service Quality, Customer’s Loyalty, Company's image & Trust.
“
“
Retain the Customer!
A brief on churn management

3. The 2020 Change
Covid-19 has given a whole new turn to Telecom Sector
The year 2020 has emerged as a global change. It has
given the most importance to the telecommunication sector
as it has no physical contact but connects the most. People
are connecting with their friends and family, conducting
online office meetings, and payments are completely digital.
Change Covid-19
Has Brought!
Unexpectedly The importance of telecommunication has emerged as the only safe option to carry out life
and businesses. A whole new world of opportunities and possibilities have opened
Fastest internet is
an essential need
For students &
employees.
Online Study
Networks that
had mobile apps
For deliveries
Are booming
Delivery
Mobile network is
the only safe
means of
connectivity
Connectivity

4. Background
A brief on Telecom sector History in Pakistan
In 1989 the Government of Pakistan
officially awarded the license to the
cellular mobile operators.
Instaphone was first ever mobile
communication services of Pakistan
followed by Paktel.
Pakistan Telecommunication Authority
was formed in the year 1996.
Paktel switched to GSM technology (
Global system for mobile
communication in 2004 from the
AMPS (advanced mobile phone
services).
i
ii
iii
iv

5. Current Trend
Best Customer Services
These days industry evolves around timely response services.
High speed internet
High speed, bug free Internet has become an essential.
Online payments
Services must also include digital payment options.
Discount vouchers
Discount voucher is additional attraction these days.

6. Literature
Review
Switching Factors of Mobile Customers in Korea 2009 by Daihwa
n Min & Lili Wan.
Churn management in the telecom industry of Pakistan: A compa
rative study of Ufone and Telenor 2007 by Sadia Jahanzeb & Sid
ra Jabeen.
The analysis of antecedents of customer loyalty in the Turkish m
obile telecommunication market 2005 by Serkan Aydin and Gokh
an Ozer.

7. Research
Gap
Previously, researches have been conducted on the traditional customer satisfacti
on in telecommunication, but in this research we will analyze what exactly makes t
he customer to switch from one network to another. Including the corporate imag
e, customer’s trust and the availability of 3G/4G technology and innovation.
Why we Needed this Research?

8. Problem Statement
In the Modern Era of digitalization,
telecommunication is one of the most important
source of connectivity and networking. By
studying the factors affecting telecommunication
networks, we will analyze what causes the
telecom customers to churn.
World has Changed

9. Conceptual
Framework

10. Methodology
Applied methodology on this research is:
The urban population of Karachi
using cellular networks (16,620,000).
Population
Snowball Sampling.
Sampling Technique
Calculated through RaoSoftware th
e size is 385.
Sample size
Descriptive statistics done through
SPSS using Multiple Regression.
Statistical technique

11. SPSS Results
Now lets have a look on SPSS regression results

12. Model Summary
Model R R Squar
e
Adjusted R S
quare
Std. Error of
the Estimate
Change Statistics
R Square Ch
ange
F Chang
e
df1 df2 Sig. F Chang
e
1 .834a .696 .693 .607 .696 217.280 4 380 .000
a. Predictors: (Constant), Trust, Service Quality, Customer Loyalty, Company Image
Model summary:
Results:

13. ANOVA:
ANOVAa
Model Sum of Squar
es
df Mean Squar
e
F Sig.
1
Regression 319.856 4 79.964 217.280 .000b
Residual 139.848 380 .368
Total 459.704 384
a. Dependent Variable: Customer Churn
b. Predictors: (Constant), Trust, Service Quality, Customer Loyalty, Company Image

14. Coefficientsa
Model Unstandardized Coeffic
ients
Standardiz
ed Coefficie
nts
t Sig. Correlations Collinearity Statis
tics
B Std. Error Beta Zero-ord
er
Partial Part Toleranc
e
VIF
1
(Constant) .166 .174 .950 .343
Service Qualit
y
-.201 .028 -.263 7.246 .000 -.272 .348 .205 .609 1.642
Customer Loy
alty
-.183 .033 -.241 5.493 .000 -.709 .271 .155 .415 2.409
Company Ima
ge
-.169 .040 -.247 4.185 .000 -.745 .210 .118 .231 4.335
Trust -.389 .040 -.546 9.794 .000 -.755 .449 .277 .257 3.887
a. Dependent Variable: Customer Churn
b. P value ≤ 0.05 is considered as significant.
Coefficient:

15. Correlations
Customer Churn Service Quality Customer Loyalt
y
Company Image Trust
Pearson Correlation
Customer Churn 1.000 -.272 -.709 -.745 -.755
Service Quality -.272 1.000 .312 .528 .603
Customer Loyalty -.709 .312 1.000 .749 .668
Company Image -.745 .528 .749 1.000 .836
Trust -.755 .603 .668 .836 1.000
Sig. (1-tailed)
Customer Churn . .000 .000 .000 .000
Service Quality .000 . .000 .000 .000
Customer Loyalty .000 .000 . .000 .000
Company Image .000 .000 .000 . .000
Trust .000 .000 .000 .000 .
N
Customer Churn 385 385 385 385 385
Service Quality 385 385 385 385 385
Customer Loyalty 385 385 385 385 385
Company Image 385 385 385 385 385
Trust 385 385 385 385 385

16. Research Answers
Answers to the Research questions
1. To analyze the effect of Service Quality on
customer churn in telecom industry of Pakistan.
(The effect is -0.201)
2. To analyze the effect of Customer Loyalty on
customer churn in telecom industry of Pakistan.
(The Effect is -0.183)
3. To analyze the effect of Trust on customer churn in
telecom industry of Pakistan.
(The Effect is -0.389)
4. To analyze the moderating effect of Company’s ima
ge on customer churn in telecom industry of Pakist
an. (The Effect is -0.169)

17. Conclusion
Some limitations of this research and few recommendation for future
Recommendation:
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Limitations:
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May add other independent variables
like digitalization, vouchers etc.
2020 change can be included.
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