Dimensions of Churn Decision To create this CCI we first need to determine how many sets of variables will be needed. As we have discussed many times before, churn is a complex issue with many dimensions. There are four dimensions that are most critical to the churn decision that a customer will make. Each dimension is related to the others and each dimension resides on a scale all its own. Reasons to Churn The first dimension, and the foundation for the rest of our churn index, is the core list of reasons or issues that a customer considers eXcellence in Telecommunications The Telco Churn Handbook as important enough to be willing to churn. As we have discussed before, the biggest reason for churn in this industry include cost, coverage, quality, customer service, image, and the latest technology and features. In the process of building their own CCIs or predictive models, the wireless firm may find other variables that are also important. When these other variables are discovered they should be included in the CCI equation. Our first step is to create this core list of churn reasons. See Figure 14-4. MAJOR CHURN REASONS Price Quality Coverage Customer Service Image New Technology Figure 14-4: Core List of Churn Reasons Customer Rating of the Firm for Each Reason After the list of reasons has been developed, our next step is to get the customer to assign (or to determine how we think the customer would assign) a ranking of the firm based upon each of the issues. In our case we will use a simple sliding scale from 1 to 10. A rating of 10 means that the customer thinks that the company is excellent at providing that particular feature, while a rating of 1 means that the customer feels the firm does a very poor job. So, lets say for example, there is a customer who feels that the company is excellent at everything except for very poor job in coverage. The customer might assign the company a 1 for the poor coverage, but a 10 for everything else. See Figure 14-5. Chapter 14 Major Churn Reasons Ranking Price Quality C