How to reduce customer churn? There are many ways to do that. First of all, customers should trust you. Sound easy but in the end, it’s extremely hard for a brand to gain trust. The market is very competitive and customers requirements are constantly growing. If you interesting about customer churn and how to stop it, we created a report about it.

1. Customer Churn:
Learn from the
biggest players how
to stop it!
WHITEPAPER
REPORT BY

2. • Expert focused on loyalty tactics in
the telco industry.
• For 20 years worked for
telecommunication
companies; for the last 5
years focused on loyalty
activities development,
proactive retention,
effectivities optimization
and churn reduction.
• Her day job was focused
on searching for symptoms of
resignations to stay one step
ahead of customers thinking about
resigning.
• Now working as a consultant
for telco and service-based
businesses to improve clients’
retention processes aimed at
churn reduction.
Ola Pytel
- about the
author
2Customer Churn: Learn from the
biggest players how to stop it!

3. Improving loyalty in the telco industry
is a huge challenge due to it being a
very competitive market, with rapidly
growing customer requirements. Many
companies fight for customer loyalty in
the simplest way - with price reduction.
It’s not a long-term approach. It’s
important to identify risky moments in
the Customer Lifecycle and introduce
effective processes around them.
Listening to customers opinions
and responding to them, improving
products, providing extra value or
benefits to your customers, and
monitoring and analyzing the results
from both the short-term and long-
term perspectives is key. You should
be open-minded, carry out many tests
to create your own processes, and
perform regular optimization-based
reviews.
It is also necessary for the CRM
Department to assist (predictive
models, base system integration) based
on a clear Customer Value strategy.
In this whitepaper, we describe a
few methods of effective process
management that improve the
loyalization rate in-company. We
hope to inspire you towards further
development.
Overview of
loyalty in the
telco industry
Customer Churn: Learn from the
biggest players how to stop it!
3

4. The most sensitive part of Customer
Lifecycle Management is the end-of-
contract period. At this time, customers
show the highest resignation rate.
Competitors become more active than
usual, and customers look around for
new solutions for the next 12/24/36
months.
While working on loyalty in telecoms, we
focus on 3 key metrics:
• MOC - middle of contract
• EOC - end of contract (2 months
before end of contract and 2
months after end of contract)
• OOC - out of contract (without
commitment, 2 months after the
contract has ended)
Let’s dive deeper into what a telco
company should do, and how to contact
your customers to get the expected
result.
1. Proactive
retention
concentrated
around End
of Contract
period
4Customer Churn: Learn from the
biggest players how to stop it!

5. • Act before your customers start thinking about resignation
• Be faster than your competitors to stop them poaching your customers
• EOC customers (-2/+2 months EOC) have a churn rate 3 times higher
than OOC customers
• The highest resignation rate starts about 2 months before EOC
Key goals & assumptions
Start of contract
0mOOC
MOC
EOC
24m
23m
4m before end
of contract
4m after end
of contract
End of
contract
1m - before
end of contract
increased
possibility of
churn
CUSTOMER
LIFECYCLES
5Customer Churn: Learn from the
biggest players how to stop it!

6. How to act?
EOC general assumptions
First, you should segment your database based on Value & Risk Calculations.
Then use predictive models to create segments. Below you can see an example of such
segmentation.
Segmentation defined specific activities:
• Monetized actions aimed at GREY & RED segments on BAU/ New Build/
strong competitors area
• Risk mitigation action aimed at GREEN & BLUE segments on BAU/ New Build/
strong competitors area
Value
Churn
risk
1
1 2 3 4 5 6 7 8 9 10
2
3
4
5
6
7
8
9
10
BLUE - most valued customers
RED - low churn risk and
low value
GREEN
- high
churn risk
GREY - medium value and
medium churn risk
6Customer Churn: Learn from the
biggest players how to stop it!

7. REPORT BY
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Customer Churn: Learn from the biggest
players how to stop it!
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