Why is churn rate so important for the telco industry?

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Furthermore, based on the churn rate, considerations can also be made on customer satisfaction and, in turn, on the quality of the customer experience offered and the effectiveness of the customer journey outlined. Among other things , the churn rate can also be used as a metric for evaluating the marketing strategies implemented , given that one of the objectives of a good marketing strategy should be to reduce as much as possible the number of customers who abandon the brand. In fact, it is enough to compare the abandonment rate before and after the use of some communication or marketing initiatives to see if the trend is positive or negative.

In any case, it is important to underline that it is impossible to make the value australia whatsapp resource of the churn rate zero : it is physiological that customers move and move from one company to another. Indeed, sometimes, a certain outgoing flow is also positive because it allows you to change your clientele, starting to occupy another market segment that is perhaps more promising. What you need to avoid instead are “pathological” situations where the churn rate prefigures a continuous haemorrhage of customers that is not sustainable in the medium-long term.

In light of the above, it is clear that for every company the churn rate is a fundamental measure to use and monitor in order to know its state of health and above all the prospects that it could have in the future. However, for players in the telecommunications sector, knowledge and correct analysis of the churn rate is particularly important, since this sector is among those that suffer most from customer volatility and, consequently, presents a high level of competitiveness .