M1 Telecom - Singapore's smallest telco lost more customers this year than last year - 33% more customers to be precise (their customer churn rate increased from 1.2% per month to 1.6% per month). This on the back of a retention budget that increases 12% in 2008. Not the kind of result they were likely expecting.
Customer retention expenditure needs to be focused and disciplined. Sutowu of Carlson Marketing Asia Pacific has outlined a disciplined investment taxonomy for retention dollar investment.
Our man Sutowo is based in Singapore - he's responsible for our Decision Science Services in Singapore, Malaysia, India, Japan and Hong Kong.
Published in the Marketing Institute of Singapore's April journal issue, Sutowu's model relies on 3 pillars :
- Customers need to be targeted at the right time
- The right customers must be selected in the targeting
- They must receive the right offer or value (which in our business is often driven through a loyalty programme)
All of this is underpinned by frequent Test and Learn programmes.
Sutowo's full article is available here.
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