Churn Works for Ice Cream, Not Telecom—Here’s How to Beat It

The digital revolution has reached telecom companies—and it shows no sign of stopping. Telecom players increasingly face threats from digital natives like Amazon, Facebook, and Google, as they shift toward a focus on service and, beyond this, going after B2C and B2B markets alike.


As telecom companies encounter increasing competition from companies not traditionally involved in the telecom industry (OTT) and a decrease in service differentiation, avoiding customer churn is critical because the foundation of their business models—as well as their future ability to grow—is built upon long-term relationships with customers. Here, having a robust customer profile and history represents game-changing added value, and retention ensures that CSP’s increase their customer lifetime value, instead of losing money when a customer churns before the subscriber acquisition cost (SAC) is leveled out. Customer retention good, churn bad… Makes sense. But how can churn be prevented?

 As telecoms leaders witness their competitive landscape changing, customers are the ones to reap the benefits. The service differentiation decreases—if they don’t like what one company offers, they can find an alternative easily.  At this stage, analytics plays an incredibly critical role in helping businesses strategically deploy the key differentiating weapon in their arsenal: data.

Analytics platforms like Necto can aggregate disparate sources of data (legacy systems) and create a cohesive environment from which to pull insights. Companies can drill down to pointed customer profiles, thereby personalizing the experience and continuing to build that critical relationship. Armed with these insights, they can implement better operations processes, pricing models based on internal and external and/or competitive data, pinpoint the next best offer, their next best action, and so much more.

AI powered analytics or predictive analytics—like Panorama Necto—predict churn by automating the predictive analytics process using deep neural network technology. The pre-defined algorithms run to predict the behavior of customers and subscribers, predicting who will likely churn and when they are probably doing it. CSP’s can use this insight to present unique customer experiences and next best offers to subscribers to prevent them from churning.

In other words, analytics provides the only viable pathway to gather, centralize, and interpret the vast amounts of data that customers create, to predict and prevent churn—a communications provider’s worst internal enemy. Analytics is the secret sauce that allows telecoms to understand their customers in a deeper way and build those crucial relationships for the long haul.


Learn more about Panorama's analytical use cases for churn prediction - Request your demo today!