Monday, 7 May 2012

Do you need to retain that customer?

Most of the operators have rules to remove their prepaid customers from their customer base (ie.HLR) if the customer is not "active" for a couple of months(usually 6) They want the subscribers top-up or make at least one call so that they can be qualified as active.

But, wait a minute.. A subscriber can still be very profitable even he is not topping up a penny. The subscribers getting calls from other operators can generate a fair amount of revenue from the termination rates. Therefore, I totally disagree with this deactivating process of operators.

The retention and churn strategy should be bound with profitability, not activity.

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