2014-10-27-奥纬咨询-Retaining_Customers_10页_212kb

Summary of Customer Retention Strategies in Subscription Industries

Introduction
Customer retention is becoming increasingly challenging and costly, especially in saturated markets for telecom, broadband, and pay TV. Companies invest heavily in retention efforts, but innovative strategies can reduce churn by up to 10% while lowering retention investments by 20% or more. Leading operators focus on managing churn throughout the customer lifecycle.

Churn Management Stages
Effective churn management involves four key stages:

• Acquire: Tailor acquisition strategies to target loyal customer segments, such as intrinsic loyalists, rather than volatile deal seekers. Use data to design offers that create barriers to churn and out-mix competitors.
• Delight: Build strong customer relationships through low-cost upgrades and surprise-and-delight initiatives, enhancing loyalty and data adoption without relying on discounts.
• Prevent: Proactively address churn triggers using advanced analytics, including micro-signal and churn triggers models, to identify and act on specific risks before disconnection.
• Save: Handle disconnection requests efficiently with data-driven offers that maximize value retention, avoiding false positives and wake-up effects by focusing on genuine customer needs.

Best Practices and Common Mistakes
Leading operators use a cross-industry, value-focused approach to create a virtuous cycle of reduced churn and lower retention costs. In contrast, typical mistakes include:

• Overemphasizing reactive retention and volume saves rather than efficiency.
• Relying on generic, one-size-fits-all models that miss key triggers and lead to low ROI in campaigns.
• Managing acquisition and retention separately, without integrating lifecycle strategies.

Conclusion
Oliver Wyman emphasizes that managing churn effectively requires moving upstream across the four lifecycle stages, combining data analytics with strategic execution. Operators must continuously assess and improve capabilities to maintain a positive value engine, as competition intensifies and industry barriers lower.