A Study on Customer Churn in the Telecommunications Industry

Abstract

The purpose of this research paper is to showcase the significance of understanding and analysing the role of customer churn and its impact on the telecommunications industry holistically and focuses on the factors affecting customer churn decision and the retention strategies applied to the target customers. Churn analysis is one of the common applications used to predict the behaviour of the customers who are most likely to discontinue the provided service. Hence, it’s essential to examine the customer churn as it plays a pivotal role in determining the measures to be undertaken to ensure customer retention in the telecommunications industry. To successfully retain customers who would if not abandon the business, retention experts and marketers must be able to firstly, predict in advance which customers are going to churn through churn analysis and secondly, know which marketing behaviour will have the utmost retention impact on every customer. Armed with this data, a great proportion of customer churn can be eliminated. The paper showcases the significance of understanding and analysing the role of customer churn and its impact on the sales, customer services and the telecommunications industry as a whole. It focuses on the factors affecting customer churn decision along with the retention strategies applied to the target customers.