Globally, Mobile Churn Declines to Less than 3% a Month

Global mobile account churn now is less than three percent per month, according to Strategy Analytics, which tracks such measures for 259 mobile operators. The firm calls that the lowest level of postpaid churn and a prepaid churn since 2009.

Content bundling, multi-play bundles, and digital self-service options have been key to improving customer loyalty in the wireless market, Strategy Analytics says.

In the U.S. market, AT&T and Verizon tend to have churn below one percent a month, by way of comparison.

It is the direction of change that is most important. Since three percent monthly churn still means 36 percent annual churn, the typical mobile operator still loses more than a third of its customers every year, and essentially turns over 100 percent of its base every three years.

source: TechCrunch

Of course, churn tends to vary quite a lot. Most of the churn happens with new customers, who might be the most prone to respond to offers and inducements. Churn for customers of longer tenure tends to be quite low.

In fact, most churn happens in the first months to years of an engagement, in each cohort of new customers. "Average" churn, in that sense, is misleading. What matters is the churn rate for each new group of customers, and how that cohort churn rate changes over the first several years. 


source: For Entrepremeurs