Welcome to the Adazza blog! This is our first post so I thought I’d provide a little background and explain the motivation behind this blog.
Every year telecom and cable providers lose billions in US dollars from customers canceling their subscriptions. A Tech Republic article from 2014 revealed that 75% of new wireless subscribers are actually coming from other providers who didn’t address their needs. Furthermore, annual churn rates amongst telecom companies range between a striking 10% and 67%.
This means that for a wireless company with 10 million subscribers experiencing annual churn of 20% at an average monthly plan of $73, they are losing that’s $1.75 billion in lost revenue every year -- on the low end! In addition to lost future revenue from those customers, the company is out several hundred dollars per customer to acquire them in the first place.
If marketers were able to intervene and lower churn by even 50 basis points, that would amount to over $43 million dollars in savings. Churn is obviously a costly problem, but we believe that marketers can now play a leading role in managing it.
In this blog we’re launching, we’d like to discuss a few topics:
- Why traditional churn prediction and prevention initiatives are failing
- Why marketers are ready for a new solution for managing churn
- Tips and best practices around churn prevention campaigns
We’re looking forward to building a relationship with you and helping you prevent churn.