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The Science Of Churn: When And Why Consumers Switch Service Providers

Consumer Product Strategists At Telcos And Cablecos Can Help With A Proactive Churn-Prevention Strategy

January 16, 2009

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Why Read This Report

Churn — the rate at which consumers switch service providers for their home TV, phone, Internet, and bundle services — is a constant concern for product strategists at telcos and cablecos. A better understanding of when and why consumers abandon their service contracts can help providers in their quest to reduce churn and increase loyalty. Every year, a large number of customers plan to switch service providers. Their churn habits exhibit patterns of when in their contract life cycle they consider switching providers. In addition, only a handful of motivators — satisfaction with cost, quality of service, and customer care — have a major influence on churn. To prevent churn outright, product strategists at telcos and cablecos must create a preventative — rather than reactive — customer retention strategy.

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Table of Contents

  • Roughly 50 Million US Telecom And Entertainment Customers Will Churn In 2009
  • Churn And Dissatisfaction Go Hand In Hand
  • recommendations

  • Use Proactive — And Preventative — Measures To Fight Churn
  • Related Research Documents