Churn management

Improve profitability, lower acquisition costs and increase customer loyalty

Churn is pervasive. It affects every subscription-based business-whether it's wired, wireless, or content based. Customers churn for many reasons-expensive rates, poor service, limited coverage.

In addition, heated competition among service providers has led to price wars, aggressive promotions, and an increasing number of loyalty campaigns. As the price of service drops, customers are putting less emphasis on price and focusing on other factors such as customer service and differentiated offerings.

CGI offers an effective churn management program to help you retain profitable customers. Our comprehensive program integrates technology tools, including decision automation and optimization, with analytical models that predict the likelihood of a customer to churn from his/her actual usage behavior, near-real-time customer service experience monitoring solution, business processes and continuous learning techniques. Using our service, you can dramatically improve profitability, lower acquisition costs, and increase customer loyalty.

Approach

At CGI, we take a comprehensive view of the customer lifecycle to ensure that each contact point, including the actual experience when using a service, e.g. making a phone call, is evaluated as a potential opportunity to impact churn. By actively managing the entire customer relationship from acquisition to service usage to termination and potential win-back, our clients treat each of their customers appropriately and consistently across multiple channels.

We integrate five key disciplines in our churn management program:

  • Customer information management
  • Customer strategy development
  • Value proposition creation
  • Customer operations
  • Customer contact management

Customer information management and customer strategy ensure that data mining techniques, predictive modeling, and customer segmentation result in differentiated strategies that are relevant to the individual customer. Value proposition creation, customer operations, and customer contact management ensure that these differentiated strategies are consistently implemented through multiple, integrated channels, including the close monitoring of the customer's experience when using a service.

Our five-discipline churn management framework has been used as a standard for benchmarking churn management activities for some of the largest and most recognized financial institutions and communications companies around the world. This experience and knowledge enables us to bring a best practices orientation to each new project.

Can carriers control churn?

Companies are controlling churn by adopting and deploying customer retention best practices.

Ineffective customer retention strategies cost communications and media industries more than $10 billion each year. Churn, the voluntary defection of customers, looms as the number one problem facing many of these companies. Losing customers shrinks revenues, drives up new customer acquisition costs (which is, together with network operations and customer service, one of the top three cost items for a telecommunications operator), and often spells the difference between bottom-line profitability and loss.

Despite the many obstacles to containing churn, successful firms are leading the way by adopting best practices from other competitive industries, such as financial services, with long histories of tackling customer retention issues. Typically, a best practices churn management approach includes five key elements:

  • End-to-end customer lifecycle management
  • Application of analytical insight into customer operations
  • Close to near-real-time monitoring of customers' service usage experience
  • Installation of a test-and-learn organizational discipline
  • Accurate measurement of results

Download the Churn Management brochure