Customer expectation is the main thing driving all types of industry today. Thanks to the digital world, information is now available on real time basis. One service failure in one part of the world can blow up and soon people from across the globe can get to know about it. Signing up a customer is difficult and time-consuming, however, losing a customer is not. One misbehaviour or one system failure and a business can see painstakingly acquired customer leaving the system and joining a competitor.

This is where understanding customer churn becomes extremely important. Knowing what is customer churn and how the same affects a business can be crucial in finding out gaps and loopholes in a system. Analysing churn can help the management understand the system better and take corrective actions.

Churn analysis and customer experience management

Customer Experience Management is now the key to achieving a distinctive competitive advantage. In fact, it is one of the most important ways to keep up to the competition. One of the best ways to under customer experience management is by analyzing and understanding what churn is.

It has been estimated that about 96 per cent of ‘unhappy customers’ do not complain about why they are unhappy and simply move away. Out of these, 91 per cent do not return.  Hence, managing the customer experience is crucial when it comes to managing churn. This is a very important problem, especially for the telecom industry where there are innumerable competitors and switching between service providers are easy. In most cases switchers don’t complain or provide reasons for switching and hence service providers remain unaware why customers move away.

This is where churn analysis comes extremely useful. Churn analysis helps businesses prepare subscriber profiles and various predictive models through which churn triggers can be identified. Thus, service providers can take various remedial measures like starting discounts and offers to retain customers, managing any service delivery gaps to reduce churn and improving on the overall customer experience.

Managing churn and improving on customer experience management is a winner for getting a competitive advantage. Analyzing churn helps a business to understand customer behavior better and thus deliver services which in turn will ensure churn is managed effectively.



Comviva is the global leader of mobile solutions catering to The Business of Tomorrows. The company is a subsidiary of Tech Mahindra and a part of the $21 billion Mahindra Group. Its extensive portfolio...