Speech Analytics can Enable Telcos Effectively Control Customer Churn
Controlling customer churn is the biggest challenge of telcos today. With ever-increasing number of telecommunications service providers, customers have plenty of options and the freedom to switch from one provider to another. This has amplified the need for telcos to find out innovative ways to retain customers, together with adopting a more holistic approach to reduce customer churn.
Where majority of telcos are focused more on measuring the customer satisfaction level to ensure customer retention, they need to understand the real-time dynamics behind customer churn to effectively manage it. Often competitors’ persuasive offers, low pricing, etc., are considered to be the main reasons of customers’ switch. But, matters like poor customer treatment and grievances handling, faulty bills, on-going unresolved issues, etc., could be equally responsible for customer churn. Without having in-depth insights on customer churn, reducing customer churn will be almost impossible for telcos.
Towards customer churn management, telcos need to have a more holistic approach. They need to evaluate not only the customer satisfaction level, but also the level of retention efforts to ensure optimal results. Apart from discovering the prevalent challenges of business, spotting the inefficient processes is required by telecommunications service providers to curtail the ever-increasing rate of customer churn.
Effective churn management calls for identifying and working on the root causes of customer churn even before customers start canceling services. With predictive analytics, telcos can easily discover potential churn customers and find out the root causes of their leaving. Leveraging these meaningful insights, proactive retention programs can be designed and executed. Thus, by combing predictive analytics with proactive retention programs, telcos can proactively address the root causes of churn and efficiently retain customers.
customer-table
From predicting potential churn customers to running proactive retention programs, the process of controlling customer churn will broadly encompass the following steps:
customer-table
1. Detecting a set of recently churned customers and analyzing their calls few days prior to disconnection: After identifying a set of freshly churned customers, speech analytics software can be used to analyze their calls few days prior to disconnection. This will help identify keywords and categorize calls.
2. Identifying the Pattern of Days and Calls Made by Customers to Unsubscribe Services: Using speech analytics, behavior of churn customers can be analyzed. Customers who are likely to churn show a definite patterns of days and calls prior to cancelling the services. Usually, the frequency of calls by such customers starts going down with the day of disconnection coming close.
3. Determining Key Events that Trigger Cancellation:This step involves identifying all possible events that could lead to increased propensity of customer churn. Events like multiple contacts, on-going unresolved issues, competitors mention, disconnection mention, inquires about contract expiration, negative emotions displayed by customers, etc., have been found to be triggering cancellation in most cases.
4. Conducting Statistical Analysis: This steps involves analyzing statistical relationship between all the key events and establishing events relevance / contribution to the cancellations. Leveraging speech analytics, data points can be captured and analyzed on a regular interval without having to listen to all calls. Key triggers are ranked on the basis of business impact and propensity of occurrence.
5. Designing and Deploying Proactive Retention Programs: After identifying the critical events, proactive retention programs can be designed to address them. Following the customers’ projected propensity to churn, a measuring scale is also required to be created to identify and contact potential churn customers for customized treatments.
Once the proactive retention programs are ready, customers, who are likely to switch to competitors, need to be prudently contacted for assistance through an inception of pilot. After taking initial retention efforts, it is essential to measure their effectiveness to ensure best results and continuous improvements.
With timely resolution of issues, effective communication and customized offerings, telcos can effectively manage customer churn and sustain their competitive edge.
About Ashish Bhardwaj
Ashish is a B.Tech and an MBA with 10+ years of outsourcing experience in technology consulting, investigation, research, and call center operations management. He is currently working in R Systems as a Senior Business Development Manager and is responsible for optimizing performance, driving revenue growth and strengthening the company’s competitive market position.

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