Strategy Analytics: US & India help push wireless churn below 3% globally

Database Update Shows Wireless Churn at Lowest Level Since 2009

Boston (BUSINESS WIRE): At 2.8% per month in Q2 2018, overall churn in the wireless industry reached its lowest level since Q1 2009, driven by continued strong performance in postpaid churn and a prepaid churn level not seen since 2007. According to a new report from Strategy Analytics, “India & US Drive Wireless Churn to Lowest Level This Decade”, content bundling, multi play, and digital self-service options have been key to improving customer loyalty in the wireless market.

Please click here for the report:

These findings draw on data from the Strategy Analytics Wireless Operator Performance Benchmarking database, which tracks operational and financial KPIs for 259 operators which collectively account for almost 85% of the world's cellular subscriptions. India and the US have seen strong churn improvements in 2018 as a new ‘post-Jio’ landscape stabilizes in India and as T-Mobile and Sprint continue postpaid gains in the US.

Phil Kendall, Executive Director Service Provider Group, comments:

“Loyalty incentives, exclusives and freebies feature in many service providers’ retention strategies, though the biggest churn wins come in the area of empowering customer self-service through digital account management tools and through multi play service bundling. As service providers like Belgium’s Proximus have shown, quad play churn can be 8-10x lower than single play churn.”

Susan Welsh de Grimaldo, Director Service Provider Strategies, adds:

“Operators are seeing results from use of broad loyalty tools, like digital self-service or service bundling, which have value right across the service provider business. Going forward operators need to focus more on identifying which offers can successfully target the segments where a churn reduction is the most valuable using consumer research as well as predictive analytics to develop more relevancy; giving a free Netflix or Spotify subscription to a customer who will churn anyway is as pointless as giving it to a customer who shows no indication of ever churning.”

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Wireless Churn, Worldwide (Graphic: Business Wire).

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