Improving the customer churn management of Eastern Communications by establishing a Retention Management Committee

• Main Author: Gono, Giancarlo L.
• Format: text
• Language: English
• Published: Animo Repository 2022
• Subjects: Customer loyalty; Customer loyalty programs; Telecommunication—Customer services; Business Administration, Management, and Operations; Marketing
• Online Access: https://animorepository.dlsu.edu.ph/etdm_manorg/131; https://animorepository.dlsu.edu.ph/context/etdm_manorg/article/1163/viewcontent/Improving_the_Customer_Churn3_Management_of_Eastern_Communications_Redacted.pdf
• Institution: De La Salle University

Eastern Communications has been reliably growing its yearly revenue from 2015 up to 2022. Despite the continuous revenue growth of the company, its board has been looking for opportunities to better improve its revenue generation and increase its current market share. And as a Lasallian Business Leader, I found out that for us to achieve those, the company should have a strong customer retention management. By definition, customer retention management defines a company’s method or business model to keep or retain its valuable subscribers to continue generating revenue by way of continuously rendering of services to them. In simpler explanation, it is a process of protecting its base subscribers from disconnecting from the company. In the telecommunication industry, a customer has the right to terminate the service anytime he/she desires Even if there’s a contract, he/she can just pay the remaining months of his/her availed service. In case of termination, it leads to attrition which is considered lost business or revenue churn for the service provider. Preventing churn by protecting the customer base thru retention programs, special offers, and systemized account handling should be prioritized by a subscription-based company like Eastern Communications, to be more profitable and to become one of the industry leaders. Telecommunication companies that manage a well-versed and analytics-based approach to its customer base management can absolutely lessen their churn. This is based on the best practices that the two telco giants have been implementing as they both have a cross-functional team that have been capitalizing on the collected data and insights that could determine and be the basis for the actions needed to address their churn. A specific framework was utilized for understanding the details of the research paper. I applied the ‘Conceptual Model for Customer Churn with Mediation Effects’ by J.H. Ahn et al, for choosing decisions by analyzing the forces for and against a change, and for communicating the perceptions behind the conclusion. Together with my collaborators from the different departments, we openly conducted the aforementioned framework to clearly understand the status quo or the current situation of the issue that we want to resolve. This framework allowed us to evaluate the determinants that would drive to achieve our desired situation which is to have a focused group that will firmly handle the customer retention of Eastern Communications. According to Kurt Lewin, the process of change entails creating the perception that a change is needed, then moving toward the new, desired level of behavior and finally, solidifying that new behavior as the norm. Thru the formation of the Retention Management Committee, it successfully lowered down the monthly churn of Eastern Communications since it was established. Furthermore, aside from addressing its below par customer churn management, the establishment of the focused group handling churn also achieve the following: increase in revenue, growth in market share, and providing better customer experience.