Telecom industry churn rates

Do you think the concept of Customer lifetime value (CLV) applies well to the Telecom industry, especially on the wireline side, given the dynamics and changing nature of this industry? Have you seen instances where this has worked successfully in Telecom companies, not just for campaign management or outbound marketing, but also in the areas of providing differentiated customer treatments at various channels?
The

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answer is YES. Customers in the cable and wireless telecom industries are subject to higher rates of churn; however, they do have an estimated first life. Knowing their preferred media, messaging frequency, and desired content is equally important to having an understanding of the proportion of customer lifetime value which can be invested in these activities.

This was first published in June 2004

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