Churn reduction

Definition of a churn reduction plan in a massively prepaid market

Business challenge

Our client was a North-African mobile operator, leader on a 99% prepaid market. He was experiencing a high and increasing level of churn mainly due to :

• The recent entry of a new player with an aggressive pricing policy
• A lack of knowledge of customer migration / reactivation processes (inducing auto-churn)

Greenwich’s assignement

Greenwich assisted its client in defining a tailored anti-churn plan, taking the following approach :

• Churn qualification, including churn types and rationales, churner profiles
• Loyalty programs benchmark in prepaid markets
• Design of a tailored loyalty program (eligible clients, earning rules, rewards catalog, customer experience improvement, animation, partnerships)
• Identification and qualification of short term actions to tackle churn (inbound call campaigns, SMS push, etc.)
• Stimulation plan with qualified levers, mid and long term actions (marketing plan)

Client benefits

Immediate positive effect on client satisfaction and churn rate. 9 months after the implementation of the loyalty program, satisfaction rate had risen by 6 points and churn rate had decreased by 11 points.