Table of contents for

Customer Churn Reduction and Retention for Telecoms

by Arthur Middleton Hughes

Preface

The Telecom Revolution: Creative Destruction and Packets
- Recent Telecom Developments
- Packet Switching
  - Circuit Switching
  - How Packets Were Created
  - How Packets Get to Their Destinations
  - Cable Types: Coaxial, Copper, and Fiber
  - The Growth of Broadband
  - The Invention of VoIP
  - Internet Protocol Television: IPTV
  - Broadcast over Power Lines
- The Effect of Packet Switching on the Telecom Industry
  - Who Owns the Pipe?
- Take-Away Thought
- Notes
The Lifetime Value of Telecom Customers
- What a Lifetime Value Table Looks Like
  - WhyThese Terms Are Important
- How Long Is a Customer Lifetime?
- Churn Rate and Retention Rate
- Landline ARPU
  - Gross Profit and the Discount Rate
  - Computing the Discount Rate from the Interest Rate
  - Net Present Value (NPV) Profits
  - Cumulative NPV Profit
  - Lifetime Value
- Alternate Lifetime Value Calculation Method
- Strategy Development
- What Are the Average Industry Prices and Costs?
- Adding Broadband
- The Triple Play
- Why the TV ARPU May Grow with Time
- Lessons Learned
- Will the Churn Rate Go Down with the Triple Play?
- Customers as Assets
- The Computation Period
- Including a Customer Retention Marketing Program
- The Quadruple Play
- Calculating the LTV for Customer Segments
- Calculating the LTV for a Single Customer
- LTV as a Predictor of Success
  - Possible Strategies
  - How to Do Your Own Calculation
  - Keeping Management Informed
- Conclusion
- Take-Away Thought
- Notes
Churn Reduction in the Telecom Industry
- Kinds and Causes of Churn
- Kinds of Customers
- The Importance of Cross-Sales
- Predicting Churn
  - Reducing Churn
  - Measuring Success in Churn Reduction
- The Value of Churners
- Take-Away Thought
How to Predict Telecom Customer Behavior
- Outsourced Analytics
  - The Principles behind Successful Analytics
- Using PredictiveModeling for Cross-Sales
  - What a Monthly Mailer Does Not Learn
  - Details of a Prospect Database
  - Further Results from a Prospect Database
  - Geographical Coding of Your Prospect Database
- Prospect Database Problems
  - Why Would You Want to Use Direct Mail?
- Take-Away Thought
Marketing to Telecom Customer Segments
- Segment Definition
- Microsegmentation
- Segment Strategy
  - Infrastructure
  - Action Plan
  - Segmentation Enhancement, Hypothesis, and Analysis
  - Strategy Development
  - Content and Offer Development
  - Distinguishing Segments and Status Levels
  - How to Compensate Segment Managers
- How to Set up Segments
- Take-Away Thought
Marketing Strategy for Telephone Companies
- Where It All Began
- Loss of Landline Subscribers
- Implications of the Decline
- Telephone Company Response
- Benefits of the Triple Play
- Does theTriple Play Improve the Acquisition Rate?
  - Conclusion
- How Phone Companies Are Providing Digital TV
- Fiber to theHome: TheVerizon Method
- Existing Copper Wiring: AT&T and Most Other Telcos
- Advantages and Disadvantages of theTwo Methods
- Will Phone Service, Wireless, and Broadband Become Commodities
  - Broadband as a Commodity
  - Phone Service as a Commodity
- HDTV Bandwidth Requirements
- The Threat of Naked DSL
- The Threat of VoIP
- Telco Situation Summary
- Solving the Telco Problems—Ten Steps to Success
- Take-Away Thought
- Notes
Marketing Strategies for Cable and BPL
- Growth of the Cable Industry
  - Key Reasons for Revenue Growth
  - Key Reasons for Lack of Subscriber Growth
- Rising Cable TV Rates
- Conversion to Digital
- Premium Cable Services
- Growth in Cable TV Advertising Revenue
- The Impact of Netflix
- Cable Broadband Subscribers
- Cable Telephone Service
- The Problem of Local Franchise Agreements
- Satellite Competition
- The Lifetime Value of Cable TV Subscribers
- The LTV of Analog Subscribers
- Digital Cable Subscribers
- Premium Digital Subscribers
- How Broadband Increases Subscriber Lifetime Value
- Cable Phone Service Effect on Lifetime Value
- What Smaller Cable Companies Look Like
- How Cable Companies Get Subscribers for the Triple Play
  - Know Your Market
- The Wireless Opportunity: Quadruple Play
- Contact Your Triple Play Prospects
- Segmenting Your Customers and Prospects
- How Do You Get in Touch with Your Most Likely Switchers?
- Managing Your Prospects
- Fighting Churn
- How to Create Effective Direct Mail for Cable Services
- Getting Serious about Digital and Laying Fiber
- Broadband over Power Lines
  - How BPL Works
- Advantages and Disadvantages of BPL
  - Marketing BPL
- Take-Away Thought
- Notes
Marketing Strategy for Satellite TV
- How Satellite TV Works
- Difficulties of Satellite TV Marketing
- How Satellite TV Is Marketed
- How Satellite TV Companies Acquire Customers
- What Satellite's Competition Is Doing
  - The Importance of a Merger
- What Churn Costs
  - The Current Financial Situation
- Reducing Churn in Satellite TV Customers
- What Is Being Done Today?
- Conclusion: The Future Is Bright
- Take-Away Thought
Marketing Strategy for Wireless
- How It All Began
  - Regional Wireless Companies
  - Mobile Virtual Network Operators (MVNOs)
- GSM versus CDMA
  - Advantages of GSM
  - Advantages of CDMA
- Edge and EVDO
  - Third Generation
  - Fourth Generation
- Wireless Application Protocol (WAP)
  - The Importance of the Handset
- SMS
- TV on Cell Phones
- VoIP on Cell Phones
  - Spam on Cell Phones
  - The Quadruple Play
  - GIS on Cell Phones
  - Ring Tones and Music
- Buying Products with a Cell Phone
  - Ads on Mobile Phones
  - Prepaid Cell Phones
- Marketing Strategy for Cell Phones
  - Churn Problems
  - Segmentation by Contract Type
- Reducing Churn
  - Case Study: Wireless Churn Reduction
  - The Infrastructure of a Churn Reduction Program
  - A Practical Churn Reduction Subscriber Loyalty Program
- Conclusion
- Take-Away Thought
VoIP Marketing Strategy
- How VoIP Works
- VoIP Providers
- Case Study: How Skype Got Started
  - How Skype Works
  - Skype and Ring Tones
  - The Skype Marketing Strategy
  - The Future for Skype
  - Skype Competitors
- VoIP Call Quality
  - Call Centers and VoIP
  - What Happens When Broadband Is Down?
  - Security of VoIP Calls
  - VoIP Cost Savings for Business
- Case Study: Business VoIP User
- Wireless VoIP
- WiFi, WiMAX, and VoIP
- Marketing VoIP
  - The VoIP First-Mover Advantage
  - The Philosophy of VoIP Consumer Marketing
- The Future of Independent VoIP Services
- Take-Away Thought
IPTV and Individually Addressable TV Ads
- Digital Television
  - How Television Is Digitized
- The Advantage of Digital TV and High Definition TV
- Cable Company TV Problems
- Phone Company Television Delivery Problems
  - The Head-End
  - The Access Network
  - The Subscriber Site
- Video on Demand
- Marketing Telephone Television
  - Phone TV Campaigns
  - The End of TV Mass Marketing
- Targeted Addressable Advertising
  - A Set-top Box Database: Big Profits from Targeted TV Advertising
  - The Privacy Problem and Its Solution
  - How a Set-top Box Database Is Created
  - A Practical Example: Advertising for a Ride-on Mower
  - How Targeted Advertising Differs
- A New Philosophy for Television Advertising
- Take-Away Thought
- Notes
The Promise of WiMAX
- How WiMAX Differs from WiFi
  - WiFi Equipped Cell Phones
- Will Municipal WiFi Networks Be Profitable?
- WiFi Marketing Opportunity
  - The WiMAX Advantage
  - Sprint Invests in WiMAX
- Why the Sprint WiMAX Network Could Be Successful
  - The Rhode Island Project
  - Cost of WiMAX to UMA Operators
- Marketing Opportunities for WiMAX
- A Look at the Future
  - Which System, Ultimately, Will Win?
- Take-Away Thought
The Future of Successful Telecom Marketing
- The Commoditization Problem
  - Broadband as a Commodity
  - Phone Service as a Commodity
  - Why TV Will Not Soon Become a Commodity
  - The Implication for Cable and Phone Companies
- What Can Be Done?
- High Definition Television: The Deciding Factor in Telecommunications?
  - Case Study: Introducing Color TV
- Marketing Strategies
- A Checklist for Success
- Lessons We May Have Learned
- Take-Away Thought

Glossary
Index

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