1. Churn Management in Mobile Communications Led by Dr. E. Xevelonakis

2. Definitions Churn Term used to describe customer attrition or loss Churn rate The number of participants who discontinue their use of a service divided by the average number of total participants during a period SunTel Mobile Telecommunications Slide 2/19

3. Growth rates worldwide SunTel Mobile Telecommunications Slide 3/19

4. Reasons for churn Easy to switch provider Difficult to manage the customer data Inadequate services Quality of service Plenty of attractive offers Customer dissatisfaction SunTel Mobile Telecommunications Slide 4/19

5. Types of churn Involuntary Internal Voluntary Need to focus SunTel Mobile Telecommunications Slide 5/19

6. Data Transformation Data identification Data collection Validation & Cleaning Transpose to right granularity Addition of derived variables Preparation of Model Set Conduct Modelling SunTel Mobile Telecommunications Slide 6/19

7. Propensity to Churn Changes in spending or payment patterns Recurrent or multiple problems or queries SunTel Mobile Telecommunications Slide 7/19

8. Customer profitability calculation completed calls call forwarding failed calls customer care calls voice calls directory info data calls SunTel Mobile Telecommunications Slide 8/19

9. Churn reduction Identify customers value Plan a profitable marketing strategy Point out clients most likely to defect Develop win-back policy for worthwhile customers SunTel Mobile Telecommunications Slide 9/19

10. Data Set & Variables (1/2) Race / Origin Current Age Occupation Geographic Locale or Major City Number of households at address Length of service Lifetime average minutes usage SunTel Mobile Telecommunications Slide 10/19

11. Data Set & Variables (2/2) Average monthly calls (lifetime) Average monthly minutes (completed voice) Recent change in monthly minutes Days since last retention call Range of monthly recurring charges Handset price SunTel Mobile Telecommunications Slide 11/19

12. Decision Trees or Neural Networks? Decision trees customer classification easier to use Neural networks hidden pattern recognition less costly more advanced Decision Trees Neural Networks SunTel Mobile Telecommunications Slide 12/19

13. Premium customers Characteristics Long duration / high cost calls Demand high quality of service Churn due to network incapability / high cost Strategy Free talking time Gift mobile devices SunTel Mobile Telecommunications Slide 13/19

14. Classic customers Characteristics Excessive SMS usage Short duration of calls Unstable user group Churn due to competitors better offers Strategy Special prepaid cards SMS offers Discounts in new handsets SunTel Mobile Telecommunications Slide 14/19

15. Strategy Keep both groups Classic customers represent clients majority Premium customers have high customer value Design different market models for each group SunTel Mobile Telecommunications Slide 15/19

16. Past, present, future SunTel Mobile Telecommunications Slide 16/19

17. Latency effect Need for immediate action Undesired rise in churn rates More dissatisfied customers SunTel Mobile Telecommunications Slide 17/19

18. Telecommunications in Greece 1/1/1996 Deregulation 4 major companies 3 rd place worldwide in handset possession 11,8 million connections Low usage Elastic market 13% of the market comes from data transmission SunTel Mobile Telecommunications Slide 18/19

19. Greek market strategies Incentives to use new technologies Special economic programs Discounts in handsets Billing discounts Advertisement SunTel Mobile Telecommunications Slide 19/19

20. The End… Thank you for attending our lecture!