Our client, a multinational telecommunications company was presently facing above-average levels of customer turnover, compared with industry levels. With the increasing price competition from new companies and resellers, the commoditisation of telecommunication services and consequently declining margins, customer retention and accurate churn forecasting are of critical importance.
High levels of customer churn result in a declining market share, loss of revenue and deterioration of brand equity. Accurate churn forecasting enables senior management, through the use of advanced analytics and data science, to take required actions.
Through the application of Statistics and Data Science, we were able to identify key variables driving customer defection in the company’s most profitable business units.