Churn rates have risen consistently in the mobile industry with average customer lifetimes little more than two years now, half their level a decade ago.
Prepaid churn is the main culprit here, driven by promotional SIM activity in developing markets (prepaid churn in Asia-Pacific is almost 100% per annum): operators should focus on pushing out targeted promotions to existing users to build longer-term, more valuable customer relationships.
By contrast, the postpaid market, which accounts for the majority of operator revenues, has seen churn improve, though this has become costly to manage as smartphone subsidies stretch operator resources.
Strategy Analytics Wireless Operator Strategies service examines key questions such as:
What is the average lifetime value of customers by prepaid, postpaid and blended?
How strongly has postpaid churn recovered from its worst at the peak of the recession?
What are the trends in prepaid churn rates in Europe? Asia?
Which operators have been most innovative in addressing churn and the handset subsidy issue?