Network Quality Impact on Churn

Customers are more likely to consider changing their mobile broadband service provider when their experience in a mobile network is consistently below their expectations. In competitive markets, the available user throughput is the single most critical quality-of-service factor behind mobile broadband customer experience.

The impact of quality of service on churn probability can be quantified when reliable throughput measurements are available. With intelligent probe solutions, the experienced user throughput can be measured accurately on customer level and over all use situations. Alternatively, other information sources, such as crowdsourced measurements or network statistics, can be used to assess the impact of network quality on churn decision.

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User throughput impact on churn[/caption]

Operators can use this information to identify the critical quality levels, after which the customers’ churn probability dramatically increases. These can be used to identify business critical network quality targets for different customer segments. On the other hand, improving the throughput beyond a certain level has little additional impact on decreasing churn probability. Furthermore, the results help in understanding how much of churn can be attributed to poor throughput and i.e. to what extent the churn can be controlled by network improvements in the first place.

Omnitele has quantified the throughput sensitivity of different customer segments in various markets, and helped operators to transform from performance-driven to value-driven network quality management.

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Omnitele is an independent Finnish consultancy and world leading expert in mobile network design. We provide trusted expertise on network strategy formation, revenue enhancement, operating efficiency and improving customer experience.

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