CUSTOMER CHURN ANALYSIS: ANALYZING CUSTOMER CHURN DETERMINANTS ON INDIHOME AND PROPOSED BUSINESS STRATEGY

• Main Author: Salma, Nisrina
• Format: Theses
• Language: Indonesia
• Subjects: Manajemen umum
• Online Access: https://digilib.itb.ac.id/gdl/view/57349
• Institution: Institut Teknologi Bandung

The growth of internet service providers in Indonesia, has led Indonesia to be one of the world’s fastest-growing telecommunications market. With the rise of Fiber Optic (FO), align with the emergence of the new Internet Service Providers (ISP). This condition derives a number of internet service providers pushing the Indonesian market massively. The well-established internet service providers can suffer from a loss of valuable customers to competitors due to many attractive offers from the competitions or known as customer churn, one of them is IndiHome which an ISP brand operated under Telkom Indonesia. The trend of customer churning in IndiHome is increasing from month to month during the year of 2020. Hence, knowing the customer churn determinants in IndiHome and analysing the business environment are essential for creating the right strategy to prevent customer churn. Accordingly, this research then conducting an environment that consist of external and internal analysis to analyse the business situation. In external analysis, this research utilized several framework including PESTLE, Competitor Anlysis, and Consumer Analysis that conducted using quantitative method trough questionnaire with 387 respondents. In the internal analysis, this research use STP, current Marketing Mix (7Ps), and Resources and Capabilities. As the business issued explored, the main problem of IndiHome is IndiHome experience customer churn which implicated that IndiHome failed to retain its customers. Hence, the root cause of IndiHome is the gap between the customer expectation and product quality that was given by IndiHome. There are 4 alternatives strategy that generate from this research and the strategy 1 is chosen. The proposed strategy is focusing on maintenance and service quality improvement. The action plan is including the developing of alarm system, improvement of current strategy, and health check cable and hardware of IndiHome. The proposed strategy are made based on the consideration and the analysis of pros and cons which fit best and suitable with current main issues that face by IndiHome.