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Churn Management

Predictive modeling of churn analysis and management aims at generating scores depicting the probability of the customers to churn out in future.

Business Definition of Churn Management

Defining churn is the first and foremost activity in Churn Management designing. Different companies define churn according to their business experiences.

Churn Parameters for business analysis

Customer demographics Customer demographics related data are used for segmenting the entire customer base depending on:

d) Customer Account Information

Billing and Usage:

b. Monthly usage summary (Charged call count, Charged data volume, Free call ; Data amount)

g. Network Product information ( Voice, Messaging, Data)

Quality of service is a potential churn driver as call drops or inferior service quality increases the customer dissatisfaction and therefore churn probability. The Loyalty scheme related data is used for churn scoring.

Data Management

Data management is the foundation for a business analysis.

Data Management has three parts:

Load: Involves loading the data in the Business Intelligence Data Warehouse

Data Modeling and Churn Score generation

Once the authenticated data is available in the data warehouse, the data modeling is performed.

The data model generates individual customer's churn score which ranges from 0 to 1.

0 - Signifies least probability of the customer to churn

1 - Signifies highest probability of the customer to churn.

Usage information

Customer service/complaints

The top two parameters contributing to the churn score to be generated on individual customer level (for customers having churn scores greater than the threshold).

Customer Service/Complaints: The higher score in Customer service/Complaints signifies that the customer has called the customer care frequently and probability of that customer dissatisfied with the service is higher. Further investigation to the customer call interaction details can reveal the cause of frequently calling to customer service.

Implementing Churn Management Solution Implementation Steps

Data Analysis - ETL: In this stage, the data is extracted from the source system, transformed (cleaned/modified for missing fields and data quality is analyzed) and then loaded into Data Warehouse of the business intelligence tool.

Data Modeling: In this stage, the analytical data models are created by statistical methods (eg: Logistic regression method) on historical data for churn score prediction and Analytical Base tables are populated by data.

Reporting: The churn score (0-1: 0 - means less probability of churn, 1 - Maximum probability of churn) is generated at each customer/account/subscription level and corresponding report is generated.

Data management utilizes 75% of the total implementation time. Data Management includes:

Data Quality: Data obtained from the source systems need to be of high quality and error free. The major challenge in implementing a business analytics solution is obtaining a high quality data.

SAS in business analytics

SAS is a leading business analytics software and service provider in the business intelligence domain.

SAS - Telecommunication Intelligence Solution (TIS)

SAS Campaign Management for Telecommunication

SAS Customer segmentation for Telecommunication

SAS Customer retention for Telecommunication

SAS churn management and campaign management solution includes Segmenting the entire customer base

Scoring the individual customer on the basis of their churn probability

SAS Data flow (Architecture)

CRM system: Customer/Account/Subscription related data

Provisioning system: Activation date, equipment (Handset) age Billing System: Billing data

The data is collected in the Data Interchange Layer (DIL). Campaign Data Mart: This data is used for targeting specific customer segments for targeted campaign.

Business Intelligence tools help the telecom service providers to perform data analysis and to predict churn probability of a particular customer. As a business intelligence tool, SAS empowers the business to efficiently handle enormous volume of data and perform analysis on the available information for millions of customers.

SAS - Business Intelligence - Churn ; Campaign Management Solution For Telecom Industry