This is the fourth report in a series addressing churn reduction. The earlier MWP report Reducing Churn-Part 1: Best Practice Overview (Oct 2014) examined best practice strategies deployed by operators around the world to reduce churn.
These strategies may be broadly grouped as follows:
- Using big data analytics and contextual real time marketing campaigns to address churn;
- Improving the end-to-end customer experience to address the root causes of churn;
- Product and service strategies that increase customer stickiness.
The second MWP report Reducing Churn-Part 2: The Indian Market (Dec 2014) explored how the Indian mobile industry as a whole has reduced churn rates and also how Indian operators use sophisticated data analytics and contextual marketing for churn reduction.
The third report Reducing Churn-Part 3: Customer Experience (Feb 2014) took a detailed look at what best practice customer experience management requires using as an example the successful Customer First strategy launched by TELUS in the Canadian market in 2010 and which is still in use today.
This report takes a closer look at how emerging product and service strategies can help to successfully reduce churn.
It focuses specifically on three key areas:
- Multi-play is widely acknowledged by the industry to deliver churn benefits. We review examples from eircom in the Irish market, True Move in the Thai market and Movistar in the Spanish market that have demonstrated success in this area.
- OTT partnerships delivering VAS bundles and zero rated VAS also have a role to play in churn reduction. This report looks specifically at Vodafone UK's partnerships with Spotify, NetFlix and Sky Sports and Orange's partnership with Deezer. The agreements are still in their early stages but there are potential churn benefits to operators in these agreements.
- Finally, it examines the churn benefits from mobile digital services such as cloud storage from Movistar Spain, insurance services from Tigo Kiiray in Senegal, and mobile money services from Telesom ZAAD in Somaliland.
We conclude that emerging products and services such as multi-play, OTT bundles and mobile digital services have the potential to help operators in churn reduction. However, in order to deliver these new services, operators will have to be willing to partner and share revenue. A series of specific recommendations are given at the end of the report for the consideration of all mobile operators.
Table of Contents
- 2.1 Background to the Report
- 2.2 Report Content
- 2.3 Currency and Conversions
- 2.4 Further Questions and Feedback
3 Churn Continues to Challenge MNOs
- 3.1 Introduction
- 3.2 Revenue from Core Voice and Text is in Decline
- 3.3 Data Revenues Must Therefore Increase
- 3.4 Increasing Competitive Pressure from OTT Services
- 3.5 Mobile is Moving Centre Stage
- 3.6 Customers are Demanding More
- 3.7 Churn Remains a Challenge
- 3.8 No Silver Bullet for Churn Reduction
- 3.9 New Product Strategies can Reduce Churn
4 Multi-Play Strategies to Reduce Churn
- 4.1 Overview
- 4.2 Multi-play Examples
- 4.3 Case Study: eircom Multi-play Reduces Churn
- 4.3.1 Overview
- 4.3.2 Timeline
- 4.3.3 Results
- 4.4 Multi-play Future Trends
5 OTT Partnerships to Reduce Churn
- 5.1 Background
- 5.2 OTT Partnership Approaches Used to Reduce Churn
- 5.2.1 Value Added Service Bundles
- 5.2.2 Zero-Rated Data for VAS
- 5.3 Case Study: Orange and Deezer Premium Music
- 5.4 Case Study: Vodafone and Sky, Netflix & Spotify
- 5.5 The Future of OTT Partnerships
6 Digital Services to Reduce Churn
- 6.1 Digital Services Overview
- 6.2 Case Study: Cloud Based Storage by Movistar Cloud
- 6.2.1 Background
- 6.2.2 The Movistar Cloud Offer
- 6.2.3 Results
- 6.3 Case Study: Mobile Insurance from Tigo Kiiray
- 6.3.1 Background
- 6.3.2 Tigo Kiiray
- 6.3.3 Results
- 6.4 Case Study: Mobile Money by Telesom ZAAD
- 6.4.1 Background
- 6.4.2 Telesom ZAAD
- 6.4.3 Results
7 Conclusions & Recommendations
- 7.1 Conclusions
- 7.2 Recommendations
Appendix - Feedback Questions