Can artificial intelligence help operators prevent customer churn and revenue drain?

Global mobile operators collectively lose tens of billions of euros annually, to customer churn. The impact of churn on a mobile operator’s profitability is of consequence. Churn impacts the operator’s financials in several ways. Firstly, operators lose the future revenue that a churned customer can provide. Secondly, all the marketing investments and resources used to acquire the customer are lost.

Operators typically spend astronomical amounts on getting customers, even though the cost of retaining an existing customer could be as much as 50 times lower than acquiring a new client. This is a vast, yet relatively unexplored and potentially profitable opportunity for mobile operators.

Systematic churn prevention requires predicting and behavioural modelling based on a vast amount of data living in several locations on the network, and gets continuously updated. Could artificial intelligence and big data be applied in an economical way to help operators turn around their churning customers? This needs dedicated resources and investments in big data analytics and machine learning, which would be able to detect low signals and see correlations that normal rule engines or humans cannot see.

Please note: Report can only be read by users who have logged in. Registration is free via the form on the rightbottom!

RECENT ARTICLES

Nokia and SURF Rrach 800Gb/s transmission over existing fibres

Posted on: April 16, 2024

Nokia and SURF, the collaborative organisation for IT in Dutch education and research, have reached a single carrier 800Gb/s optical transmission over SURF’s existing cross border, multi-vendor research and education

Read more

YOFC acquires RFS Germany and RFS Suzhou

Posted on: April 15, 2024

Yangtze Optical Fibre and Cable Joint Stock Limited Company (YOFC) recently completed the acquisition of Radio Frequency Systems (RFS) Germany and RFS Suzhou, a landmark event in its global expansion.

Read more