Telecommunication Customer Detainment Management

Telecommunication Customer Detainment Management

Jiayin Qi (Beijing University of Posts and Telecommunications, China), Yuanquan Li (Beijing University of Posts and Telecommunications, China), Chen Li (Beijing University of Posts and Telecommunications, China) and Yingying Zhang (Beijing University of Post and Telecommunications, China)
DOI: 10.4018/978-1-60566-194-0.ch024
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Abstract

This chapter proposes an integrated methodological system of telecommunication customer detainment management, including telecommunication customer churn prediction and strategy formulation of customer detainment management. The formulation of churn customer detainment management strategy includes customer detainment value assessment, customer detainment level determination, enterpriseattribution approach based on customer detainment strategy analysis, evaluation and implementation, and so forth. Future research in this field is discussed at the end of this chapter.
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Background

According to the telecommunication customer life cycle theory, telecommunication customer detainment management is the key management task in the declining stage of customer relationship. (Shu & Qi, 2004) Telecommunication customer detainment management includes identifying whether a customer has entered a declining stage; once the customer has entered a declining stage, re-defining customer relationship and re-establishing customer relationship to start a new cycle of customer relationship with the customer if the customer is worth detainment; or stopping investing resources in unrecoverable customer relationship and terminating the relationship in appropriate ways. In other words, identifying potential churn customers and segmenting them, formulating, evaluating and optimizing targeted customer detainment strategies are the main tasks of telecommunication customer detainment management. Through these tasks, the telecom operators can detect churn tendencies of customers and then take effective measures to win potential churn customers back or terminate customer relationships with them in appropriate ways.

Key Terms in this Chapter

Enterprise Attributive Analysis: It is the analyzing method focusing on customer churned reason in the view of company.

Customer Relationship Decline Phase: The last phase of customer relationship life circle management (Recognition Phase, Development Phase, Mature Phase and Decline Phase). When customer has the signs to churn, customer relationship enter Decline Phase.

Customer Detainment Strategy: The management strategy which company uses to avoid customer from churning.

Detainment Response Hierarchy Analysis: To decide the detainment priority of churned customer in the view of company.

Customer Detainment Management: A management methodology containing customer management process, strategy and evaluation which company uses to prevent customer from churning.

Customer Churn: Customer’s switching from this services or goods provider to another.

Churn Alarm Model: The mathematical model or data mining model for predicting customer churned tendency.

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