Telecommunication Customer Detainment Management

This chapter proposes an integrated methodological system of telecommunication customer detainment management, including telecommunication customer churn prediction and strategy formulation of customer detainment management. The formulation of churn customer detainment management strategy includes customer detainment value assessment, customer detainment level determination, enterprise-attribution approach based on customer detainment strategy analysis, evaluation and implementation, and so forth. Future research in this field is discussed at the end of this chapter. IntroductIon With the increasing competition in the telecommunication market, customer-winning battles between telecom operators are becoming fiercer and fiercer. In order to gain more market share, telecom operators continually launch and offer new products and services. However, this increases the volatilities of customers to a large extent, leading to the frequent occurrences of customer churn. A report from Gartner’s survey reveals the cost of developing a new customer is usually 4-5 times greater than that of retaining an old customer. Another study shows that, with reducing customer churn rate by 5%, a company’s profit can increase by 25%-85%. Hence, it is obvious that the loss of DOI: 10.4018/978-1-60566-194-0.ch024