A Analysis of Churn Management in China Telecom Industry
Contents
1. Introduction………………………………………………………………….. 1
2. Researches on churn management……………………………….…...............1
3. Customer value and churn analysis……………………………….…..............2
4. Churn analysis in china telecom industry..........................................................3
5. Recommendations..............................................................................................4
6. Conclusion..........................................................................................................5
7. References...........................................................................................................6
An analysis of churn management of telecom industry in China
Introduction
Traditional marketers emphasised that increasing sales volume should be the first in the market strategy. With the traditional strategy marketers are oriented toward single sales and they concentrate on products’ features rather than customer services, which leads to the result that it is limited to meet customers’ demands. (Payne et al., 1995) However, today’s competitive market strategies mainly focus on maintaining the relationship with targeted customers in specific segments, which call customer relationship management (CRM). Churn management, a vital component of customer relationship management (CRM), which is critical for a competitive customer relationship management strategy. Companies’ profitability increase year by year due to effective customer retention approaches. Conversely, a high rate of customer attrition tends to gobble up companies’ profits. One good example to illustrate it is that the one of biggest electrical retailer Comet plans to close all stores in the UK because it loses a majority of clients in the keen competition with E-business retailers such as Amazon. Customer churn and customer retention are two significant aspects of churn management. The aim of churn management is to minimize the proportion of customer
1. Introduction………………………………………………………………….. 1
2. Researches on churn management……………………………….…...............1
3. Customer value and churn analysis……………………………….…..............2
4. Churn analysis in china telecom industry..........................................................3
5. Recommendations..............................................................................................4
6. Conclusion..........................................................................................................5
7. References...........................................................................................................6
An analysis of churn management of telecom industry in China
Introduction
Traditional marketers emphasised that increasing sales volume should be the first in the market strategy. With the traditional strategy marketers are oriented toward single sales and they concentrate on products’ features rather than customer services, which leads to the result that it is limited to meet customers’ demands. (Payne et al., 1995) However, today’s competitive market strategies mainly focus on maintaining the relationship with targeted customers in specific segments, which call customer relationship management (CRM). Churn management, a vital component of customer relationship management (CRM), which is critical for a competitive customer relationship management strategy. Companies’ profitability increase year by year due to effective customer retention approaches. Conversely, a high rate of customer attrition tends to gobble up companies’ profits. One good example to illustrate it is that the one of biggest electrical retailer Comet plans to close all stores in the UK because it loses a majority of clients in the keen competition with E-business retailers such as Amazon. Customer churn and customer retention are two significant aspects of churn management. The aim of churn management is to minimize the proportion of customer
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