Churn reduction route to profit


Churn costs European and US mobile operators USD4billion a year, yet the operators themselves spend a large part of their advertising budget encouraging people to switch from one network to another. Steve Rogerson explains.

The bottom line, according to Veronique Tchobanian-Green, a consultant with Chorleywood Consultancy, is that if an operator can reduce churn by 1%, it can increase profit by 6%. She also said it cost five times as much to get a new customer as it did to retain an existing one.
She was speaking at the Mobile Customer Profitability and Loyalty conference in London in April.