Enterprise Customer Retention Strategies in Mobile Markets
2005.10.30   |   36 pages   |   Churn Prevention Strategies   |   Selling to & Supporting Business Users

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As mobile markets mature, operator market share is increasingly shaped by operators' success in retaining their customers. For this reason, operators globally are increasing the resources they now allocate to customer retention. While much analysis has been devoted to the subject of churn prevention in the consumer segment of the market, very little coverage has focused on the issue of enterprise customer retention. This is despite the fact that SMEs and larger corporate customers spend considerably more on mobile services than the average consumer user.

Given the strategic value of the enterprise market, it is surprising that so little research and analysis has been dedicated to understanding Enterprise Churn. Similarly, limited analyst time has been spent assessing the success or failure of strategies developed to win and retain enterprise customers. This paper addresses this oversight. It draws on two operator case studies from Europe and North America and supplements this with a specially commissioned survey of 100 mobile decision makers in UK enterprises which reveals the retention related issues of greatest importance to enterprises in that market.

Keywords: enterprise, issues, retain, corporate, canada, retention, makers, medium, sized, small, segment, importance, measurement, slippage, SME, europe, decision, customer, america, canadian, sticky, success, north, USA,

1 Overview 1
2 Introduction 2
2.1 The Enterprise Market Context 2
3 Enterprise Customer Rates & Measurement Issues 4
3.1 Enterprise Churn Rates 4
3.2 Churn Measurement Issues 6
4 Operator A - Canadian Case Study 7
4.1 Market Context & Definitions 7
4.2 Enterprise Customer Segmentation & Relevance to Churn 7
4.2.1 Company Paid Accounts 7
4.2.2 Expenses Backed Accounts 7
4.2.3 Employee Purchase Programs 8
4.3 Churn Triggers for the Enterprise Customer 8
4.3.1 Overview 8
4.3.2 Pricing 9
4.3.3 Churn via "Slippage" through the back door 10
4.3.4 Customer Support/Service 11
4.3.5 Building Infrastructure 11
4.3.6 Building "Sticky Services" 12
4.3.7 Other Customer Retention Strategies 13
5 UK Case Study: Vodafone 14
5.1 Overview 14
5.2 Difference between Business & Consumer Churn 14
5.3 Difference between Countries 14
5.4 Measuring & Addressing Enterprise Churn 15
5.5 Service and Handset Exclusivity 16
5.6 What Impacts on Enterprise Customer Retention? 17
5.6.1 Customer Support and Service 17
5.6.2 Complaint Monitoring and Acting on Complaints Intelligence 17
5.6.3 Seamlessness - Switching between 3G and 2G 18
5.6.4 Sticky Services - Data Solutions 18
5.6.5 Sticky Services - Corporate Services 19
5.7 Strategic Conclusions 20
6 The Customer's Perspective: Enterprise Churn Survey 21
6.1 Overview 21
6.2 Enterprise Awareness of Operator Strategies to Encourage Loyalty 21
6.3 Enterprise Views on Impact of Current Loyalty Strategies 25
6.4 Enterprise Views on Effective and Ineffective Loyalty Strategies 27
7 Overall Conclusions & Lessons Learned 34

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