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Customer Churn Reduction and Retention for Telecoms: Models for All Marketers

Customer Churn Reduction and Retention for Telecoms: Models for All Marketers
by Arthur Middleton Hughes

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Customer acquisition is a life-and-death matter for most companies. So are customer retention and its opposite, churn. They determine actual Marketing ROI and prove the value of customer acquisition expense. Together, they are the main obstacle to company success, and their successful management is the main drivers of company profitability.

Hughes uses the US Telecom industry to develop models of customer churn reduction and customer retention that will benefit every marketer and every company. Why US Telecoms? Because the Telecom industry has been a veritable laboratory of business and marketing practice and innovation for the past quarter-century The rise and fall of companies in wave after wave of innovation (“creative destruction”) is well known, and the limits of strategies to hold on to hard-won customers, such as product bundling, are also demonstrated every day.

So, Hughes’s analysis applies directly to Telecoms. But these are the same core problems that every marketer and every business face. The fast pace of the Telecoms just magnifies these problems and solutions.

Hughes first surveys the Wild West of Telecom marketing activity. Cable TV companies are offering broadband and phone service. Phone companies are offering broadband, television, and movies. Electric utilities may be offering all of these services soon. Satellite TV companies are in trouble. Wireless companies are stealing landline subscribers and may be offering TV. Verizon is trying to win by laying fiber to three million homes per year. AT&T is spending billions to solve exactly the same problem using DSL. Meanwhile, Skype and other independents are offering almost free worldwide phone and picture phone service. Intense competition is forcing prices down and will certainly eventually lead to the destruction of several large household-word telecom companies. Who will survive?

In Customer Churn Reduction and Retention for Telecoms: Models for All Marketers, industry expert Arthur Middleton Hughes explains what these Telecom enterprises can do to continue to exist in this environemnt. Their salvation rests not in their technologies, Hughes explains, but in their marketing strategies. In highly readable, everyday language, Hughes provides a strategic marketing map for every player in the industry, showing how to apply sophisticated marketing tools to each industry sector and each technology. Key subjects covered include:

  • Customer churn reduction strategies
  • How to predict what subscribers will do
  • Customer lifetime value and segmentation
  • How mass marketing is threatened by Internet televisio
  • How real is the risk from Internet phone calls
  • How WiFi and WiMAX may make phone wires obsolete
  • Why the Triple Play may not be a winner
  • Why HDTV may determine the winners in the Telecom battle
  • What Telecoms of the future will look like
  • Strategic hot buttons for future marketing activities

If you are in Telecom, the marketing insights here could make this your survival manual. If not, you still will find invaluable insights to tailor to your company’s marketing strategies and programs, especially in fast-changing environments. There are lessons here for marketers and business leaders in every industry.

About the Author

Arthur Middleton Hughes is one of the acknowledged pioneers of database marketing with more than twenty-nine years of experience designing and building marketing databases for more than thirty companies, including wireless and wired Telecoms, banks, insurance companies, retailers, automobile, and Internet companies. He is Vice President/Solutions Architect of KnowledgeBase Marketing (, a subsidiary of Young and Rubicam.

Along with frequent articles in leading industry publications, Hughes has published six best-selling marketing books, including Strategic Database Marketing, 3rd ed. (McGraw-Hill, 2006). Hughes is a popular speaker at Telecom, marketing, and economics.

Why You Should Read This Book

Today there are unprecedented changes taking place in the telecom industry which will affect everyone working in wireless, landline phone, cable TV, satellite TV, VoIP, and electric utilities, plus the thousands of companies that support these industries.

New technologies are being introduced, and consolidations are taking place. In the next few years, thousands of telecom employees will lose their jobs, while, at the same time, new opportunities for exciting employment will open up. Most of us working in the telecom industry know our part of the picture fairly well. But the telecom universe today is so broad that few have the big picture.

The book you are reading gives you the big picture. It fills you in on those sections of the telecom industry that you may not be totally familiar with, but which could be the reason why your part of the industry may be changed beyond recognition.

These changes are not being brought about by “market forces.” They are only partly due to new technologies. The driving forces are the marketing activities of many companies that are using new technologies to expand in new directions – directions currently the province of some established industry that had not previously been thought of as a direct competitor. These marketing activities will affect your industry, your company and your job.

What should your company do about the situation? What should you do, yourself, to prepare for the changes? Those are the questions that should be in your mind as you read these pages. They are a guidebook for the future.

This book provides step by step procedures for successful marketing for Telecom industries, including telephone companies, cable TV companies, wireless companies, satellite TV companies and many others. It provides details on how to determine the lifetime value of Telecom subscribers. It shows how to create and market to subscriber segments, and how to use analytics to predict which subscribers are most likely to defect – before it is too late.

You will learn a number of things that you do not know now, including how to compute the lifetime value of your subscribers, how TV ads will become targeted to individual households, how WiMAX could revolutionize phone and broadband delivery, and why electric utilities could become players in the Telecom space.

After reading this book, you will have a master plan for reducing subscriber churn in your company, despite rapidly changing technologies and unexpected competition from industries that used to be placid monopolies. You will learn how to keep your subscribers happy and loyal. You will become a master marketer. What could be better than that?

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    About Arthur

    Arthur Middleton Hughes has published over 200 articles on Database and E-mail Marketing. Click Here to read them.

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