Case study on reducing customer churn fir T-Mobile - Essay Example

The rule was further enhanced by Sherden as 20-80-30 expressing the idea that the top 20 percent of customers generate 80 percent of the companys profits, half of which is lost serving the bottom 30 percent of the unprofitable customers (Sherden, 1994). Customer retention has become harder with the propagation of internet and increased bandwidth. Provision of several options has made the switching barriers ineffective. In order to keep the customer base in the safety net it is important for the company to fill all the loops and holes to avoid customer leakages.

It is always important for the Telecommunication companies to find new and innovative ways of finding about the factors, which lead to the customer defection. It is also imperative for the company to create a connection with the customers being at high risk of defection and reduce the overall churn rate. It is important to tie the above mentioned segments in the loyalty string of the company. An automated survey query can be sent to the customers through email or the survey can be directly undertaken by sending an automated call to the specific numbers of the target audiences in order to get instant response from the customers on daily basis form both the segments of Pay Monthly and Pay as You Go customers.

The survey then can be reviewed by the customer care staff so that call centre representatives can purposefully undertake conversation with the customer providing negative feedback. On the next level the customer should be provided with the opportunity to again fill a brief survey form. If again the feedback is negative the customer should be asked if they would like to speak with a manager regarding their issue(s). Managers should be notified of the customer call-back requests on urgent basis.

The data regarding the customer’s survey responses should also be provided to the manager in order to undertake useful follow up with the customers. The loss of the customers can be