1. Case study: Customer Retention
Strategy Lowers Telecom
Customer Churn by 50 Percent
Proactive strategies lead to lower churn, higher
renewal rates, and ways to adapt to changing
market and customer dynamics
COPYRIGHT © 2014. ALL RIGHTS PROTECTED AND RESERVED.

2. The Challenge: Proactively retain customers and
improve save rates in reactive actions
With new entrants in the
telecommunications market
disrupting the status quo, one Middle
Eastern telecom incumbent faced a
sharp increase in customer churn
rates, resulting in eroding market
share and revenues. With a mobile
market penetration of over 150
percent, high dual-SIM ownership
after the entry of the competitor, and
further deregulation on the
horizon, the incumbent needed ways
to retain valuable churn-risky
customers and activate dormant
lines.
Peppers & Rogers Group helped the
client design and implement
proactive retention capabilities and
revamp the reactive retention
domain.
2

3. The Approach: Create churn prediction models and design relevant offers
The Peppers & Rogers Group team began by building a churn prediction
model, designing offers, and deploying the outbound retention team. Specifically, the
team:
•Analyzed the reasons for churn and validated churn hypothesis with data analysis
and surveys
•Using this insight, developed and implemented churn prediction analytics model
with a very high accuracy that periodically updates the risk scores for more
accurate and timely retention actions
•Developed a pool of retention offers for different churn reasons and customer
behavior for higher relevancy thus retention performance
•Tested the performance of these retention offers and optimized them based on the
pilot results
•Established process for internal alignment within marketing for fast and coordinated
campaign deployment
•Deployed outbound retention team in the contact center and helped roll-out the
initial proactive retention actions
3

4. The Approach: Create churn prediction models and design relevant offers
Because the operator suffered from low save rates for
reactive retention actions, the team also uplifted reactive
retention performance. Specifically, the team designed
and deployed dedicated ‘save desks’ at retail
outlets, established a dedicated inbound retention team for
value added services, and deployed standardized
processes and tools to support the ‘Save Desks’ in outlets
and the retention team at the contact center.
While deploying these capabilities, the team focused on
complete knowledge transfer to build the internal
capabilities within the operator for a sustainable and longterm solution. Currently, the operator is able to run the
retention activities as per the plan and re-evaluate the
requirements as market dynamics change.
4

5. Insights & Outcomes: Churn Decreases by 50 Percent,
Renewal Increases by 15 Percent
Despite the increasing competitive pressure, the
proactive retention capabilities helped by Peppers
& Rogers Group achieve 50 percent decrease in
prepaid and postpaid blended churn rate. In
addition, the company saw a 15 percent increase
in renewal rates within the first year of
implementation. Similarly, the revamp of the
reactive retention tripled the save rates. With this
project, the operator developed a sustainable
retention capability that has a direct bottom line
impact on company performance.
5

6. www.peppersandrogersgroup.com
www.teletech.com
Corporate Headquarters:
9790 South Peoria St
Englewood, CT 80112
USA
+1 (203) 989-2200
COPYRIGHT © 2014. ALL RIGHTS PROTECTED AND RESERVED.
The information contained in this document, much of which is confidential to
Peppers & Rogers Group, is for the sole use of the intended recipients. No part of
this document may be reproduced in any form or by any
means, electronic, mechanical, photocopying, recording, or otherwise, without
the prior written permission of Peppers & Rogers Group.
Peppers & Rogers Group is a division of TeleTech.