ket Research on Voluntary Churn A great amount of market research has been done on the topic of voluntary churn. In fact, it is probably the number one topic on the research priorities of just about every carrier in the world. The results invariably show differences in various markets, countries, and cultures, but most surveys find that the major stated reasons for churn include: 1. Price 2. Quality Coverage Area Customer Service 5. Image While a great number of variations will show up, these five reasons inevitably are at the top of all churn reasons lists. They have been reported to be the primary reasons for churn by long distance Other 18% Price 47% Customer Service 13% Quality 11% Coverage 11% Figure 4-2: Churn Reasons - Wireless Chapter 4 customers, local exchange carrier customers, and wireless customers as their primary complaints about the service. Surprisingly, this holds true for just about every country where such research has been done. Figure 4-2 shows the results of a recently conducted U.S. survey on churn reasons. Also interesting are the results of a survey of long distance customers for the reasons they changed to their current carrier and why they continue to like this provider. Operators Calling Card Promotions Customer Service Call Quality Billing Credibility/Cost/Value Image Figure 4-3: Customer Satisfaction Reasons - Long Distance Under the category of voluntary churn we recognize two major types of voluntary churn, incidental churn and deliberate churn. Incidental Churn Incidental churn occurs, not because the customers planned on it but because something happened in their lives, and the termination of the service is a side effect. Change in Financial Condition Churn Change in financial condition churn is attributed to the customer losing a job, going bankrupt, ending up with large bills, or any other kind of financial calamity. Obviously, under such conditions the customer will be forced to discontinue service. eXcellence in Telecommunications The Telco Churn Handbook Change in Location 