How To: Customer Churn Journey


US-Pay TV Churn
Churn der amerikanischen PayTV Branche


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SKY's Kampf um den Mobilfunkmarkt

Sky hat seinen Angriff auf den mobilen Markt gestartet und hofft, Millionen von Pay-TV-Kunden davon zu überzeugen, von ihrem derzeitigen Mobilfunk-Anbieter zu churnen d.h. diesen zu verlassen.


Laut Sky haben sich bereits 50.000 Kunden für den Service vorregistriert.

Es wird vorerst mit keiner Erhöhung der Pay-TV-Loyalität bzw. der Churn Rate gerechnet.


Mit dem Angebot unbegrenzter kostenloser Anrufe und Texte soll dies erreicht werden. Wer zu Sky Mobile wechselt, bezahlt für den mobilen Breitbandzugang, mit einem 1GB Paket £ 10 pro Monat, Bei 3GB sind es £ 15 und bei dem 5GB Paket fallen £ 20 an.



Die Sky Kunden können unbenutzte Daten auf Familienmitglieder übertragen und diese untereinander teilen. Laut Sky wird die Mobilfunk Rechnungen getrennt von der Sky Rechnung versendet.





Postpaid churn was 1.27 percent in the first quarter, which T-Mobile CEO John Legere said was "the best postpaid phone churn numbers in our history".


The nation's No. 3 wireless carrier said it added 1.9 million customers to its network during Q2, marking the 13th consecutive quarter it delivered more than one million net adds.

Breaking that number down, T-Mobile said it added 890,000 post-paid accounts, which are the most lucrative category of wireless subscribers. The carrier has said previously it expects branded postpaid customer growth to slow this year, and according to the numbers, that's what's happening. Last quarter, T-Mobile added just over one million postpaids.



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The company added 615,000 wireless customers, on a retail, post-paid basis, after customer defections, and said its customer churn continued to be be low at 0.94%.


Total wireless net additions were 1.3 million.


During a conference call with analysts following the report, CFO Fran Shammo remarked that “equipment revenue was also under pressure, due primarily to lower postpaid phone activations,” specifically down 4% at $3.7 billion.


Digging into the details, Shammo remarked,

Total postpaid device activations were 9.5 million in the quarter, down 4.3% sequentially and nearly 16.2% on a year-over-year basis. Approximately 81% of these activations were phones, with tablets accounting for the majority the other device activations. About 5.4% of our retail postpaid base upgraded to a new device in the second quarter. The purpose of decline of 180 basis points.


One analyst pressed Shammo on how much of the slowdown would be typical of a decline at this time of the year in advance of a new iPhone. “What extent do you think this is sort of a typical pre-iPhone level … or a new environment of more subdued activity going forward?”


Shammo said it’s “too early to tell

On handset cycles, two points here. One is, obviously, we saw similar trends, maybe not this dramatic, in 2014, we saw a slowdown in the first half of the year in anticipation of iconic phones that were coming up on a two-year cycle. So, I think some of it could be that. Unfortunately, for us we have our first set of EIP customers coming up on their two-year anniversary, and there’s not enough volume yet for those customers to really get a behavior track, if you will, whether they are going to hold their phone and take a $20 to $25 discount on their bill or if they are just waiting for a new phone. So I think it’s too early to tell.



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Dish Network Corp. lost a record number of TV subscribers in the second quarter as programming blackouts and price increases drove customers to seek cheaper online alternatives, reviving industrywide concerns about “cord-cutting.”

Dish shed 281,000 pay-TV customers in the quarter, compared with a loss of 81,000 a year earlier, according to a statement from the Englewood, Colorado-based company Thursday. That marks the biggest loss of TV subscribers in any quarter. The rate of monthly customer defections, or churn, rose to 1.96 percent from 1.71 percent a year earlier, Dish said in a separate filing.


The results underscore the challenge Dish faces in trying to keep customers from ditching their traditional satellite-TV service for lower-priced, online-only options like Netflix or Hulu. To help stem the losses, Dish created Sling TV, a streaming-video service starting at $20 a month that includes live broadcasts from channels including NBC and ABC as well as cable networks ESPN, USA and Bravo. Dish doesn’t disclose Sling TV’s customer count, though analysts estimate it added between 49,000 and 100,000 subscribers in the second quarter.


“While we were prepared for some weakness due to a number of programming disputes this quarter, we were not prepared for the magnitude,” Philip Cusick, an analyst with JPMorgan Chase & Co., said in a research note Thursday. Last month, Tribune Media Co. removed local broadcasts in 33 cities after the two companies failed to reach a contract renewal agreement.




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CEO Reed Hastings doesn’t see competition as a major reason for the uptick in churn:


If it was saturation, what we would be seeing is hit to gross ads more than we would in terms of churn. So, other possible explanations were that we did something on our service, around that week, but we’ve looked at everything and the fact that its coincident with the group of trend data we included really indicates that people don’t like price increases, we know that.

It’s a necessary phase for us to get through and then with the increased revenue, we’re continuing to invest in better and better content. So that’s what makes us feel very strong and positive about the long-term and that this is a short term phenomenon.


It is all about content at the end of the day, he adds, not the pricing model:


We’re continuing to improve the content, which is the fundamental driver of value for subscribers, how much they watch, how unique the content is, how exclusive it is…I think this is really around change resistance, whatever the price is for something people don’t like it to go up. But in terms of new members, which is most of what drives growth, the new pricing is working great.





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Brands battle customer churn in China

Leading FMCG brands in mainland China have to constantly recruit new buyers as fickle consumers rarely demonstrate loyalty to specific products, according to a new report. Consultancy Bain & Co and research firm Kantar Worldpanel analysed the behaviour of 40,000 households from 373 cities over a two-year period.


They examined shopping behaviour in categories including beer, juice, baby milk, carbonated soft drinks, biscuits, chocolate, skincare, shampoo, kitchen cleaners and detergents. Baby milk was the only category where brands did not see a high rate of churn. In the other sectors, between 40% and 80% of customers for the top five brands were effectively new each year, with chocolate, skincare and shampoo among the hardest hit.

In the case of Procter & Gamble's shampoo brand Head & Shoulders, for instance, overall customer numbers were more or less stable over the two years assessed, but 45% of buyers in the first year did not return in the second. "The more [mainland consumers] buy a category, the more brands they buy," James Root, Bain partner, told the South China Morning Post. "It's the exact opposite of what marketers want to hear. "There's an enormous pressure to re-recruit new shoppers every single year," he added.

The best way of tackling the issue, the report said, was by increasing penetration, which had been shown to correlate with the success of leading brands. "There is overwhelming evidence that if I want to win, I'll need penetration," Root said. "It's not going to work if I try to get a small group of people to buy more often."

Foreign brands appear to be losing out to local brands on this score, with indigenous products often dominating in the food and beverage sector. One exception is baby milk powder, largely as a result of several safety scandals involving Chinese brands. Overall, the report noted, foreign brands had lost share in 15 of 26 categories assessed, a trend that was particularly pronounced in oral care, cosmetics and juice.



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