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CHURN PREVENTION SYSTEM
(CPS) CPS analyzes subscriber data-originating from the operational environment-to profile churners, and score each subscriber according to their potential to churn. The variables analyzed include such characteristics as: reduced use of service, subscriber under or over usage of minutes on a given plan, the number of calls made to the network of another operator, as well as a range of other criteria. CPS identifies the value of a subscriber and indicates the reasons for potential churn. The outputs of the analysis can be used to plan campaigns for targeting the right subscribers and for personalizing the treatment of each subscriber according to their behavioral profile. Subscriber information is gathered by continuously monitoring Call Detail Records - that is why the process is fast. HOW CPS WORKS? 1. Predict which subscribers are likely to churn: It is important to identify early warning signs of churn so mobile operators can correct a problem or offer subscribers incentives to stay. Speed is critical and can only be achieved with a churn prevention system that is continuously monitoring subscriber behavior. 2. Understand why subscribers churn: Mobile operators can work on changing their service to satisfy subscriber needs, in order to prevent them from leaving. Subscribers that churned are classified into 2 categories: - Subscribers that were not detected as "likely to churn" but nevertheless churned. (By identifying subscribers in this category the prediction criteria described in 1 can be refined and updated.); - Subscribers that were detected as "likely to churn," but who did not respond to a plan for retaining them, and subsequently churned, are identified for marketing evaluation purposes. 3. Target the high value/revenue subscribers: It takes an estimated 5 years for mobile phone operators to yield a profit from the average subscriber. This is particularly challenging considering most subscribers churn within 5 years. High value subscribers, however, become profitable within 2 years. By identifying real customer value, CPS helps mobile operators to broaden their appeal and retain high value subscribers. |
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