Telecom Churn Management : The Golden Opportunity

by Mattison, Rob

• ISBN13: 9781893970052
• ISBN10: 1893970051
• Format: Paperback
• Copyright: 2001-04-01
• Publisher: Althos Inc

Table of Contents

Churn in Telecommunications: The Golden Opportunity	1	(23)
Welcome to the World of Churn	1	(13)
Wireless Churn in the U.S.	2	(1)
Churn Is Pervasive	3	(1)
Churn around the World	4	(1)
Churn for Long Distance Carriers	4	(1)
Churn Is Inevitable	4	(1)
The Technology	5	(1)
The Customers	5	(1)
Worldwide Acceptance of Wireless	6	(1)
The Fickle Consumer	7	(1)
The Regulators	7	(1)
The Competitors	8	(1)
Churn Is Expensive	8	(1)
Lost Customers = Lost Revenue	8	(1)
Lower Rates = Lower Revenue	8	(1)
The Cost of Reacquisition	9	(1)
The Cost of Customer Retention	10	(1)
Advertising Escalation	10	(1)
The Price Spiral	11	(1)
Planning and Budgeting Chaos	11	(1)
Investor Relations Liability	12	(1)
Churn Is Difficult to Manage	12	(1)
The Big Surprise	13	(1)
Difficult to Predict	13	(1)
Difficult to Explain	14	(1)
Difficult to Defend Against	14	(1)
Churn, the Golden Opportunity	14	(9)
How Do We Turn Churn into a Good Thing	14	(1)
Making Radical Changes in Market Position	15	(1)
Making Radical Changes in Profitability	16	(1)
Making Radical Changes in the Corporate Culture and Organizational Structure	16	(1)
Churn Helps You Learn about Your Business	17	(1)
Learning about Who Your Customers Are	17	(1)
Learning about What Your Customers Want	17	(1)
Learning about What Your Company Should Do Next	18	(1)
The Wireless Industry	19	(1)
Introducing the ``Churn Busters''	20	(1)
The Churn Busters Present ``Churn: The Golden Opportunity''	21	(2)
Telecommunications: An Industry Founded on Churn	23	(16)
All Industries Have Churn	24	(2)
Telecommunications As a Technology Product	24	(1)
Industries Affected by Technology	25	(1)
Industries Created by New Technology	25	(1)
The New Technology Assimilation Life Cycle	26	(2)
Early Adapters	27	(1)
The Chasm	27	(1)
Expansion Phase	28	(1)
Maturity Phase	28	(1)
Decline Phase	28	(1)
The Telecommunications Assimilation Cycle	28	(8)
Wireline Life Cycle	29	(1)
Bell Invents the Telephone	29	(1)
The Early Days of Telecommunications	30	(1)
Telecommunications Maturity	31	(1)
The Decline of the Wireline Telephone	31	(1)
Wireless Technology Lifecycle	32	(1)
The AMPS Life Cycle	32	(2)
The PCS/GSM Life Cycle	34	(1)
Wireless Implications	35	(1)
Long Distance Technology Cycles	36	(1)
Technology and the CLEC and LEC	37	(2)
Churn Taxonomy - Part 1: Involuntary Churn	39	(10)
Churn Name Confusion	39	(3)
Different Perspectives, Different Names	40	(1)
The Need for a Comprehensive List	40	(1)
The Challenges of Reason-Based Churn Categories	40	(1)
Why Use Reason-Based Churn Categories?	41	(1)
The Churn Reasons Taxonomy	42	(1)
Two Major Categories of Churn	42	(1)
Involuntary Churn	43	(4)
Fraud (Customers Who Cheat)	43	(1)
Non-Payment Churn (Customers with Credit Problems)	44	(1)
Don't Give Phones to People with Credit Problems	45	(1)
Establish Cutoff Dates	46	(1)
Friendly Acquiescence	46	(1)
Underutilization Churn (Customers Who Don't Use the Phone)	46	(1)
Managing Involuntary Churn	47	(2)
Churn Taxonomy-Part 1: Involuntary Churn	49	(26)
Voluntary Churn	49	(4)
Market Research on Voluntary Churn	50	(2)
Incidental Churn	52	(1)
Change in Financial Condition Churn	52	(1)
Change in Location Churn	52	(1)
Change in Life Situation Churn	52	(1)
Deliberate Churn	53	(1)
Technology-Based Churn	53	(7)
Handset Churn	54	(1)
Handset Churn Conditions	54	(1)
Feature/Function Churn	55	(1)
Network Churn	55	(1)
Dealing with Technology Churn	56	(1)
Early Adapters and Technology Churn	56	(1)
The Early Adapter Challenge	57	(1)
Retroactive Enhancement	57	(2)
Handset Promotion: The Bad Surprise	59	(1)
Technology Churn Lessons	59	(1)
Maturity Phase Churners	60	(2)
Expansion Phase Churn - Rare	60	(1)
Maturity Phase Churn - Common	61	(1)
Economic Churn	62	(3)
The Price Suicide Play	63	(1)
Avoiding Head-to-Head Price Competition - Price Obfuscation	63	(1)
Quality and Churn	64	(1)
Quality, Perception, and the Incumbent Advantage	65	(5)
The Familiarity Factor	65	(1)
The Might-Makes-Right Factor	65	(1)
Quality Perception and the Advertising Advantage	66	(1)
Coverage	66	(1)
Call Quality	67	(1)
Objective Call Quality Measures	67	(1)
Subjective Call Quality Measures	68	(1)
Technological Excellence	68	(1)
Customer Service	69	(1)
Billing	70	(1)
Social/Psychological	70	(2)
Friends/Family	71	(1)
Image	72	(1)
Experimentation	72	(1)
Convenience	72	(2)
Channel Churn	72	(1)
Promotion Churn	73	(1)
Internet/Alternative Channels	73	(1)
Churn Taxonomy Conclusion	74	(1)
Consumer Shopping Cycles for Telecom	75	(22)
How Do Consumers Manage All of This Information?	76	(1)
Shopping Cycles	76	(1)
The Shopping Cycle for Automobiles	77	(1)
Characteristics of the Buick Buyer	77	(1)
Churn and the Buick Buyer	78	(1)
Catastrophic Churn for Buick	78	(1)
Natural Churn	79	(1)
Shopping Cycles for Convenience Stores	80	(1)
Convenience Store Churn	81	(1)
Stable vs. Unstable Shopping Cycles	82	(1)
Understanding Telecom Shopping Cycles	83	(1)
Alternative Telco Contract Types	83	(2)
The Fixed-Term Contract Model	83	(1)
The Pay-As-You-Go Model	84	(1)
The Prepaid Model	84	(1)
The Hybrid Model	85	(1)
The Consumer/Provider Relationship	85	(1)
Consumer Expectations	86	(1)
Everybody Hates the Phone Company	86	(1)
Pre-Competitive Shopping Cycle	87	(1)
The Competitive Telecommunications Shopping Cycle	88	(4)
The Wireline Cycle	88	(1)
The Long Distance Cycle	89	(1)
Alternative Long Distance Patterns	90	(1)
The Wireless Cycle	91	(1)
Modern Telco Shopping Cycle Behavior Examples	92	(1)
The Incumbent Do-or-Die Cycle	92	(2)
Incumbent Brand Image Curiosities	93	(1)
Positive Associations with Former Monopoly Providers	93	(1)
Professional Churners (a.k.a. Professional Shoppers)	94	(1)
The Confused Consumer	94	(1)
Shopping Cycle Chaos	94	(1)
Strategies for Managing Shopping Cycle Chaos	95	(2)
Traditional Views of Churn Management	97	(32)
How Other Industries Manage Churn	98	(6)
The Retail Buying Experience	98	(1)
How Retailers Manage Churn	99	(1)
Retail Applicability to Telecommunications	100	(1)
Airline Industry Churn Management	101	(1)
Frequent Flyer Programs	102	(1)
Why Frequent-Flyer Programs Are So Successful	102	(1)
Airline Loyalty from a Telco Perspective	103	(1)
Typical Telco Churn Management Techniques	104	(1)
Preemptive Churn Management	105	(9)
The Economics of Preemptive Churn Management	105	(1)
Reasons for NOT Blanket Churn-Proofing	106	(1)
Premature Churn-Proofing Is Expensive	107	(1)
Selective Vs. Blanket Preemptive Investing	107	(1)
The Case for Customer Service	108	(1)
Preemptive Management Techniques	109	(1)
Addressing Deficiencies	110	(2)
Call Quality and Coverage Problem Approach	112	(1)
Branding and Image Maintenance	113	(1)
Preventive Maintenance	113	(1)
Loyalty Programs	114	(4)
Sponsorship	115	(1)
Clubs and Chat Rooms	115	(1)
Points and Awards Programs	116	(1)
Preferred Customer Status	117	(1)
Reactive Churn Management	118	(5)
Reactive Management Techniques	119	(1)
Loyalty Appeal Campaigns	119	(1)
Parity Campaigns	119	(1)
Predictive Response Campaigns	120	(1)
Data Mining and Predictive Models	121	(1)
Blind Predictive Response Campaigns	122	(1)
Value-Based Predictive Response Campaigns	122	(1)
Segment-Based Predictive Response Campaigns	122	(1)
Random, Disorganized Responses to Churn	123	(3)
The Churn Stimulation Campaign	124	(1)
Stealing Your Own Customers	125	(1)
What Is Wrong with That?	126	(1)
Mixed Messages, Poor Returns	126	(1)
A Systematic Approach to Churn Issues	126	(3)
Churn Management Wisdom	129	(24)
Basic Rules of Churn	130	(9)
Churn Always Happens	130	(1)
It Won't Happen Here	131	(1)
Regulatory Environment	131	(1)
Market Dominance	132	(1)
Catching Up With the Times	132	(1)
Churn Only Happens When Conditions Are Right	133	(1)
The End of the Expansion Phase	133	(1)
During the Maturity Phase	134	(1)
During the Decline Phase	134	(1)
When Contracts Expire	134	(1)
When New Competitors Enter Your Market	134	(2)
When Conditions Are Right, You Cannot Prevent Churn	136	(1)
When Conditions Are Right, You Will Loose Money No Matter What You Do	137	(1)
Ignore the Predatory Activity	138	(1)
Launch Counter-Measures	138	(1)
Initiate Your Own Predatory/Reacquisition Activities	139	(1)
No Matter What You Do, You Loose	139	(1)
Better To Manage Churn Than For Churn To Manage You	139	(1)
The Customer Factor	139	(5)
All Customers Are Not Of Equal Value	140	(1)
Customers Churn For Complex Reasons	141	(1)
Companies Act On Segments, Customers React As Individuals	141	(1)
Every Customer Behavior Can Be Anticipated	142	(1)
Some Customer Behavior Can Be Predicted	143	(1)
Prediction vs. Anticipation	143	(1)
Changing the Churn Management Equation	144	(1)
Timing Issues	144	(4)
When To Take Action?	145	(1)
The Consequences Of Acting Too Soon	145	(2)
The Consequences Of Acting Too Late	147	(1)
Finding the Critical Moment	147	(1)
Strategic Approaches	148	(3)
Offensive - Continued Expansion	148	(1)
Making the Continued Expansion Approach More Effective	149	(1)
Offensive - Predatory Acquisition	149	(1)
Making Predatory Acquisition More Effective	149	(1)
Defensive - Retention Management	150	(1)
Making Churn Management More Effective	150	(1)
Factors of Effective Churn Management	151	(2)
Churn Management Objective Statement	151	(1)
The Churn Management Equation	151	(2)
Manage Relationships, Not Churn	153	(14)
A Different Frame of Reference Is Required	154	(1)
What Are You Trying to Manage?	155	(4)
Is It Really Possible to Manage Churn?	156	(1)
Managing Involuntary Churn	156	(1)
Managing Price-Based Churn	157	(1)
Managing Technology-Based Churn	157	(1)
Churn Is a Symptom	158	(1)
Managing Relationships - the Marriage Model	158	(1)
Marriage Counseling for the Telco	159	(8)
Who Are You?	160	(1)
Know Who You're Getting Involved With	160	(1)
Knowing Your Customer	161	(1)
Relationship Models	161	(1)
Different Kinds of Marriage for Different Kinds of People	161	(1)
Alternative Telco Relationship Models	162	(1)
Are You Equipped to Do The Job?	163	(1)
Can You Deliver the Goods?	163	(1)
Communication	164	(1)
One-way, Two-way, No-way	164	(1)
Establishing Communication with Your Customer	164	(1)
Participating in the Relationship	165	(1)
When the Relationship Is in Trouble	166	(1)
Moving Forward with the Marriage Relationship Model	166	(1)
A Relationship with a Telco	167	(52)
Flaws in the Logic of This Argument	168	(1)
Telcos Are Not individuals; They Are Corporations	168	(1)
Markets Are Made Up of Millions of Customers	169	(1)
Challenges	169	(2)
Culture	170	(1)
Business Model	170	(1)
Information and Intelligence	171	(1)
Typical Organizational Structure	171	(2)
The Telecommunications Value Chain	172	(1)
The Desperation Ploy - Creation of a Churn Manager	173	(2)
Churn and Customer Relationships are Created by the Entire Organization	174	(1)
Churn Can Only Be Managed By The Entire Organization	175	(1)
Customer Relationship Management	175	(8)
The CRM Components of the Value Chain	175	(2)
Management Structure	177	(1)
Stockholders and the Board of Directors	177	(1)
Upper Management	177	(1)
Metrics, Measures, and Key Performance Indicators	178	(1)
Computer Systems and Reports	178	(1)
Customer Relationship Organizations	179	(1)
Advertising	179	(1)
[Market Research	179	(1)
Marketing	179	(1)
Direct Marketing	180	(1)
Sales	180	(1)
Channel Management	181	(1)
Agents	181	(1)
Retail Outlets	181	(1)
Customer Service	181	(1)
Internet Channel	182	(1)
Billing	182	(1)
What Do These Business Units Do?	182	(1)
Getting the organization to act like an individual	183	(7)
Organizational Contention Challenges	183	(1)
Different Functions: Different Views	183	(1)
Problem No. 1: Creating a Single View of the Customer	184	(1)
Different Functions: Different Objectives	184	(1)
Problem No. 2: Creating Comprehensive and Consistent Key Performance Indicators	185	(1)
Sales Example	186	(1)
Different Organizations: Different Information	186	(1)
Problem No. 3 - Making Pertinent Customer Information Available	187	(1)
Who is In Charge of the Customer?	188	(1)
Problem No. 4: Someone Needs to Be Responsible For Customers	188	(1)
The Problem of Information Overload	189	(1)
Problem No. 5: You Need to Filter, Organize, and Prioritize Information Sharing	189	(1)
Coordinating Customer Touchpoint Activity	190	(4)
The Corporate Customer Data Warehouse	190	(1)
The Good News	191	(1)
The Bad News	192	(2)
The Data Warehouse Trap	194	(6)
The Typical Scenario	195	(1)
Data Warehouse to the Rescue	196	(1)
But It Doesn't Work!	196	(1)
Know What You Are Trying to Build	197	(1)
Salvage Operations through Scope Reduction	197	(1)
A Data Warehouse Cannot Repair a Broken Business Process	197	(1)
A Single View of the Customer Is Not Enough	198	(1)
The Data Warehouse Must Have Teeth	199	(1)
Introducing the Customer Management System	200	(1)
Building an Effective Customer Management System	200	(1)
Critical Success Factors for the Customer Management System	200	(1)
An Authoritative Source of Customer Information	201	(8)
Dominion	201	(1)
Unquestionable Integrity	202	(1)
Directive Capabilities	202	(1)
The Place Where Customer-Related KPIs Are Set, Assigned, and Reported	203	(1)
Measuring How Well Units Do Their Jobs	203	(2)
The KPI Challenge	205	(1)
Universal Segmentation to Measure Unit Performance	205	(1)
Setting Segment Targets with WAR Metrics	206	(1)
Alternative Choices for the Customer System of Record	207	(1)
Billing System Problems	207	(1)
Why Call Center and Campaign Management Software Won't Work	208	(1)
Why Not a CRM Package?	208	(1)
Defining How The Customer Management System Will Work	209	(6)
Housing the Master File of Customer Information	209	(1)
What Is Included in the Master Customer File?	210	(1)
What Does Not Need to Be Kept in the Warehouse?	210	(1)
Feeding Customer Information to Touchpoint Management Systems	211	(1)
Receiving Information from Each of the Customer Touchpoint Management Systems	211	(1)
Billing System Feeds	212	(1)
Call Detail Record Feeds	212	(1)
Call Center, Campaign, and Contact Management System Feeds	212	(1)
Getting Information to and from Organizations That Have No Systems	213	(1)
Managing the WAR Key Performance Indicators	214	(1)
Data Warehouse KPI Management Functionality	214	(1)
Creating the WAR Key Performance Indicator Reports	215	(1)
Who Is in Charge of the Customer Management System?	215	(2)
The Customer Relationship Management Organization	216	(1)
Building the Organization and the System	217	(2)
An Introduction to Segmentation	219	(28)
Segmentation Overview	220	(3)
Reasons for Doing Segmentation	220	(1)
The One-to-One Marketing Misunderstanding	221	(1)
Segmentation Provides a Simulation of One-To-One Marketing	221	(1)
Segmentation to Create Manageable Groups	222	(1)
Segmentation to Create a Distilled Understanding of Customer Wants, Needs, and Characteristics	222	(1)
Segmentation to Set Measurable Goals	223	(1)
Segmentation Membership Rules	223	(5)
Mutually Exclusive and All-Inclusive: An Example	223	(1)
Multidimensional Segmentation	224	(1)
Problems with Mutual Exclusivity	225	(1)
Exclusivity -- Only An Issue in Certain Situations	225	(1)
Problems with All-Inclusiveness	226	(1)
All-Inclusiveness Required or Not?	227	(1)
Membership in Multiple Segments	228	(1)
Segmentation Hierarchies	228	(2)
Dynamic Vs. Stagnant Segmentation	230	(1)
Short-Lived Segmentation Schemes	230	(1)
Long-Term Segmentation Treatments	231	(1)
Stagnant Segmentation	231	(1)
Renewable Segmentation	232	(1)
Disassociated Vs. Recombinant Segmentation	232	(1)
Disassociation Example	233	(1)
Tracking the Overlap -- Not Optional	234	(1)
Geographic Segmentation	234	(1)
Behavioral Segmentation	234	(6)
Behavioral Segmentation -- Foundation for All Other Forms of Segmentation	235	(1)
Sales and Buying Behavior	236	(1)
The Basic Revenue Approach	236	(1)
Multiple Forms Of Revenue	236	(1)
Breakdown by Product/Feature/Function	236	(1)
Segmentation by Buying Behavior	237	(1)
Revenue Segmentation -- Most Common Segmentation Used in the Telecommunications Industry	237	(1)
Utilization Behavior	238	(1)
Getting Utilization Data - from Billing or Call-Detail Records	238	(1)
Reviewing Billing System Records	238	(1)
Reviewing Call-Detail Records	239	(1)
Company Interchange Behavior	240	(1)
Demographic and Psychographic Segmentation	240	(3)
Consumer Demographics	240	(1)
Most Common Consumer Demographic Characteristics	241	(1)
Business Demographics	242	(1)
Sources for Corporate Demographic Research	242	(1)
Most Common Business Demographic Segments	242	(1)
What Do You Do with All This Segmentation?	243	(4)
Segmentation Summary	243	(1)
Major Types of Segmentation	244	(1)
Segmentation Membership Issues	244	(1)
Segmentation Applications	245	(2)
Segmentation Framework	247	(22)
Unique Segmentation Needs for Customer Relationship Management	247	(4)
Segmentation Required	248	(1)
Key Characteristics of This Framework	249	(1)
Segmentation Schemes to Be Stored and Managed within Customer Management System	249	(1)
All Segmentation Schemes to Be Recombinant	250	(1)
All Segmentation Schemes to Be Authoritative and Definitive	250	(1)
All Customer Relationship Activities to Be Tied to the Framework	250	(1)
Base Segmentation	251	(8)
Purpose of Base Segmentation	251	(1)
Base Segmentation As a Surrogate for a One-to-One Relationship	251	(1)
Using Base Segments to Provide for Long-Term Consistency	252	(1)
Base Segmentation As an Activity Constraint and Guideline	253	(1)
Structure of Base Segmentation	254	(1)
Base Segmentation -- All-Inclusive and Mutually Exclusive	254	(1)
Basis for All Recombination	254	(1)
Building a Base Segmentation Scheme	255	(1)
Consumer Base Segmentation	255	(1)
Behavioral Segmentation Basis	255	(1)
Demographic and Psychographic Enhancement	256	(1)
Geographic Optional	256	(1)
Business Base Segmentation	256	(1)
Industry Basis	257	(1)
Behavioral Enhancement	257	(1)
Geographic Options	257	(1)
Applications of Base Segmentation	257	(1)
When to Build the Base Segmentation	258	(1)
Building the Base Segmentation Should Be a Formal Process	258	(1)
Annual Renewal of the Base Segmentation	259	(1)
Structural Segmentation	259	(4)
Organization of Structural Segmentation	260	(1)
Building of Structural Segments	261	(1)
Components of the Structural Segmentation Scheme	261	(1)
Recombinant Requirement	262	(1)
Application of Structural Segmentation	262	(1)
Structural Segmentation Defines the Responsibility of the Business Unit	262	(1)
Structural Segmentation and Budgeting	262	(1)
WAR Segmentation	263	(2)
Purpose of WAR Segmentation	263	(1)
Making It Work	264	(1)
WAR Segmentation Must Become the Principle Means of Measuring Business Unit Performance	264	(1)
Structure of WAR Segments	264	(1)
Building of WAR Segments	265	(1)
Application of WAR Segments	265	(1)
Targeting Segmentation	265	(2)
Purpose of Targeting Segmentation	266	(1)
Structure of Targeting Segments	266	(1)
Building of Targeting Segmentation	266	(1)
Application of Targeting Segmentation	267	(1)
Tying Discrete Campaign Activity to the Base Segments	267	(1)
Managing the Segmentation Process Itself	267	(2)
Role of the Customer Management System	268	(1)
Customer Value and the Customer Value Function	269	(10)
Why Is Customer Value Important to Churn Analysis?	270	(1)
Working with the Customer Value Function	270	(1)
Principle Components of the Customer Value Function	271	(2)
Past Revenue	271	(2)
Assembling the Customer Value Function Components	273	(2)
Definition of Variables to Be Included	274	(1)
Assignment of Relative Weights to Each Variable	275	(1)
Execution of Function Calculations	275	(1)
Two Types of Customer Value Function	275	(1)
Making Use of the Customer Value Function	276	(3)
Customer Churn Indexes	279	(26)
Making Analysis Simpler	280	(5)
Building the Churn Management Equation	280	(1)
The Customer Churn Index (CCI) Concept	281	(1)
Differences between the CCI and Churn Prediction Models	281	(4)
Making Use of the Customer Churn Index	285	(6)
Individual, Enterprise-Wide, and Segment CCI Scores?	285	(1)
Using the Individual CCI Scores	286	(1)
Using Enterprise CCI Scores	287	(2)
Making Use of Segment CCI Scores	289	(2)
Using the CCI as Part of Predictive Churn Applications	291	(1)
Creating a Customer Churn Index	291	(4)
Dimenstions of Churn Decision	291	(1)
Reasons to Churn	291	(1)
Customer Rating of the Firm for Each Reason	292	(3)
Loading the Customer Churn Index -- Customer Variables	295	(3)
Assigning the Customer Rankings and Importance of Factors	295	(3)
Loading the Customer Churn Index -- Competitive Variables	298	(1)
Objectives for Competitive Values	298	(1)
Assigning Competitive Values	299	(4)
Price	299	(1)
Quality and Coverage	300	(1)
Image	300	(1)
Customer Service	301	(1)
Alternative Sources of Competitive Information	301	(1)
Establishing the Population that our Competitive Scores Apply To	302	(1)
Customer Churn Index -- Conclusion	303	(2)
Predictive Modeling For Churn	305	(28)
The Art and Science of Predictive Analysis	305	(5)
Basic Operating Assumptions for Churn Prediction	306	(2)
Ways to Strengthen the Validity of Churn Predictions	308	(1)
What We Can Predict	309	(1)
Predicting Raw Churn Numbers	310	(4)
Reasons To Generate ``Raw'' Churn Numbers	311	(1)
Techniques for the Prediction of Raw Churn Numbers	312	(2)
Creating Targeted Predictive Models	314	(2)
Reasons to Generate Targeted Predictive Models	314	(1)
Techniques for Generating Targeted Predictive Models	315	(1)
Making Use of Individual Churn Predictions	316	(17)
This Is Not an Exact Science	317	(16)
The Retail Consumer Response Model	333	(22)
Understanding the Challenge -- Retail Model Critical Measures of Success	334	(2)
Financial Perspective	334	(1)
Market Share View	335	(1)
Churn Management Weaknesses of the Retail Model	336	(1)
Lack of Responsibility	337	(1)
Missions, Functions, and Departments	337	(5)
Uncovering the Hidden Business Model	338	(1)
The Retail Model of Customer Relationship Missions	339	(3)
The Retail Model and Telecom Customer Relationship Management	342	(1)
Functions	342	(2)
Advertising and Marketing	342	(1)
Sales	343	(1)
Customer Service	343	(1)
Billing	343	(1)
Aligning Missions and Functions	344	(1)
Organizational Structures	344	(5)
Organizational Alignment	345	(1)
Marketing Example of Functional Specialization	346	(2)
Functional Specialization for Other Areas	348	(1)
Measures and Metrics to Support the Retail Model	349	(3)
Advertising Role	349	(1)
Sales Role -- Headcount	350	(1)
Roles for Other Functions	351	(1)
The Great Churn Irony	352	(1)
Metrics and Measures for the Non-Critical Functions	352	(1)
The Retail Model, the Perfect Formula for Generating Much Churn	353	(2)
A Tele-centric Model For Churn Management	355	(28)
A New Model Is Called For	356	(2)
Transaction Model Does Not Support Ongoing Business, Focuses on the One-Time Deal	356	(1)
The Consumer Shopping Cycle and Expectations are Maturing	357	(1)
The Manifesto for a New, Improved Customer Relationship Model	358	(2)
Telecentric Operational Zones	360	(1)
Viewing the Zones from the Customer's Perspective	361	(5)
Emotional Investment Zones Analysis	362	(2)
Emotional Investment Zones and the Shopping Cycle	364	(2)
Emotional Zone Perspective -- Impacts	366	(3)
Missions Within the Zones	366	(1)
The Damper Effect	367	(1)
Shopping Cycles and the Zones	368	(1)
Practical Use of the Emotional Zone Model	369	(1)
Call Quality Problems	369	(1)
Customer Service Calls	370	(1)
Public Relations, Rumors, and Reputation	370	(1)
Why the Old Model Works	370	(1)
Assigning Departments to the Management of Zones	371	(1)
Reassignment of Marketing and Sales to the New Model	371	(1)
Addition of Other Departments	372	(1)
Zone Maintenance -- A Different Job Description	372	(1)
Job #1 -- Determining Where Customers Are in Their Relationship to the Provider	373	(1)
Redefining the Role of Marketing	373	(3)
Two Categories of Consumers	374	(1)
Focus On the Customer's Impressions	374	(2)
Redefining the Role of Sales and Promotion	376	(4)
The End of Blind Acquisition	377	(1)
How Do You Cure the Blindness?	378	(2)
Redefining Customer Service (Billing and Network Maintenance) and Customer Satisfaction	380	(1)
Redefining the Role Does Not Mean Just Spending More Money on What Has Always Been Done	380	(1)
The New Customer Service Mission	380	(3)
Minimize the Expense	381	(1)
Maximize the Contacts	381	(1)
Minimize the Organizational Impact	381	(1)
Customer Service Vision	382	(1)
Time Frames and Intimacy Appropriateness	383	(14)
The Telecentric Perspective	384	(13)
Timing Issues	384	(2)
Short-Term Customer Relationship Activity Time Frames	386	(4)
Long-Term Time Frames	390	(2)
Addressing Long-Term Customer Contentment	392	(5)
Reporting about Churn	397	(14)
A Systematic Approach to Churn Diagnosis	397	(1)
Determine the Current Market Saturation for Your Products and Services	398	(3)
Determine the Market Life Cycle Stage	398	(1)
Determine Current Market Penetration	399	(1)
Defining the Churn Pressure Index	400	(1)
Raw Churn Counts	401	(3)
Headcount Metrics	401	(1)
Account Cancellation Metrics	402	(1)
Revenue Metrics	403	(1)
The Need for Regular Churn Reporting	403	(1)
Define the Types of Churn That You Are Interested in Evaluating	404	(1)
Types of Churn	404	(1)
Battling over Churn Categorization	405	(1)
Churn Reason Collection	405	(2)
Billing System or Customer Service System Entries	405	(2)
Direct Identification Using Exit Polls	407	(1)
Alternative Churn Report Formats	407	(4)
Viewing Churn by Different Dimensions	407	(4)
Sales and Promotion: Selling Relationship Plans Instead of Rate Plans	411	(10)
Rate Plan-Based Offerings	412	(2)
Changing the Consumer Shopping Cycle	412	(1)
What Consumers Shop For ... The Rate Plan	412	(2)
Weaknesses of a Rate Plan-Based Business Model	414	(1)
No Differentiation of Product or Service	414	(1)
No Reason to be Loyal	414	(1)
Attacking the Rate Plan Assumption	414	(2)
Changing the Rate Plan Paradigm	415	(1)
The Relationship Plan based on Internal Differentiation	416	(2)
Internal Differentiation -- Network Quality	416	(1)
Passive Differentiation	417	(1)
Creating the Relationship Plan	418	(1)
The Relationship Plan-Based Sales Organization	418	(3)
Being More Selective about Who You Sell What to	418	(1)
Increasing the Sophistication of the Sales Process	419	(1)
Being More Accountable for the Long Term Health of the Relationship	420	(1)
Customer Service: Champions of the Customer Relationship Management Mission	421	(10)
The Customer Service Legacy	422	(3)
Echoes of the Monopoly Model	422	(1)
A Model Reflected in All Industries	423	(1)
Why This Model Cannot Work Anymore	424	(1)
The Customer Service Value Proposition	424	(1)
Incongruous Objectives	424	(1)
Customer Service Missions	425	(2)
Acquisition Responsibilities	425	(1)
Affinity Responsibilities	426	(1)
Wallet Share Responsibilities	427	(1)
Loyalty Responsibilities	427	(1)
Creating New Capabilities	427	(2)
Support Systems	427	(1)
Caliber of Personnel	428	(1)
Customer Service Role in Product Definition	429	(2)
Advertising, Marketing, Product Development, and Brand Management: Reinforcement Instead of Recruitment	431	(10)
Product Development and Churn	432	(3)
Killer Product Package Components	435	(3)
Brand Management, Advertising, and Churn	438	(3)
Wireless Industry Introduction	441	(10)
The Wireless Industry Today	441	(3)
Wireless Telephony -- Why is it So Successful?	442	(1)
Wireless Superceding Traditional Wireline Services	442	(1)
Phone Booths, the Next Wireless Victims?	443	(1)
Pager Business Suffers at the Hands of Wireless Services Offerings	443	(1)
Wireless Market Strength	444	(1)
Broad-Based Economic Appeal	444	(1)
Long Term Viability	445	(1)
The Wireless Future	445	(5)
Continued Market Penetration	446	(1)
Wireless Data and the Internet	446	(1)
Fixed Wireless	447	(1)
Wireless Commerce and Cash	448	(1)
E911 and Wireless Tracking	449	(1)
A Bright Future with Big Challenges	450	(1)
Wireless Industry Business Model	451	(1)
Market Entry and Startup Strategy	451	(12)
Setting Up Shop	451	(3)
Types of Competitors	454	(3)
Startup Positioning	457	(1)
Timing and Risk: Critical Startup Success Factors	458	(2)
Competitive Market Entry Scenarios	460	(3)
Ongoing Business Strategy	463	(3)
Competitive Positions	463	(1)
Other Competitive Characteristics	464	(1)
Ongoing Expense and Revenue Allocations	465	(1)
Understanding Churn from the Competitive Perspective	466
Wireless Industry Business Model	451	(16)
Market Entry and Startup Strategy	451	(12)
Setting Up Shop	451	(3)
Types of Competitors	454	(3)
Startup Positioning	457	(1)
Timing and Risk: Critical Startup Success Factors	458	(2)
Competitive Market Entry Scenarios	460	(3)
Ongoing Business Strategy	463	(3)
Competitive Positions	463	(1)
Other Competitive Characteristics	464	(1)
Ongoing Expense and Revenue Allocations	465	(1)
Understanding Churn from the Competitive Perspective	466	(1)
Wireline and Long Distance Industry Introduction	467	(1)
A Comparative Look at the Three Major Industry Segments	467	(1)
Wireless Market Makeup	467	(2)
Local Exchange Carrier Market Makeup	469	(1)
Long Distance Market Makeup	469	(1)
The Wireline Industry Today	470	(1)
Wireline Culture and Business Model	470	(2)
Wireline Telephony -- Current Consumer Perceptions	472	(1)
Wireline Product Mix	472	(1)
POTS (Plain Old Telephone Services)	473	(1)
Domestic Long Distance	473	(1)
POTS -- Enhancement	473	(1)
Broadband	474	(1)
Wireline Market Challenges	475	(1)
The Long Distance Industry Today	475	(1)
The Long Distance Legacy	476	(1)
Long Distance -- Current Consumer Perceptions	476	(1)
Competing too well?	477	(1)
Long Distance Product Mix	477	(1)
Consumer vs. Commercial Business Models	477	(1)
Wholesale vs. Retail Business Models	478	(1)
The Internet Capacity Play	479	(1)
Long Distance Market Challenges	479