Sz Mobile Company Customer Retention Strategies

With the fast growth of communication market, competition among all mobile telecommunication service providers has been becoming increasingly intensive in recent one decade. Due to the throat-throttling competition, problems of customer defection, increasing operating cost, decreasing profit are getting more and more serious and mobile telecommunication providers are shouldered with pressures from exterior and interior, that makes them consider seeking new profit models so that their core competition strength could be further promoted.Take SZ Mobile Communication Company for example. In 2005, its mobile phone customers increased by 371 thousands and 7 hundred with net increase of 108 thousand and 8 hundred. That means there are annually accumulated customer defection of 262 thousand and 9 hundred (including those customers changing to other networks of this company) and rate of customer defection reaches to 48.98%. The customer defection has caused direct lost approximately RMB 86 million.What should SZ Mobile Telecommunication Company do when confronted with more and more severe customer defection? This paper uses internal interview combined with sampling questions to analyze the problem of customer defection happening to SZ Mobile Telecommunication Company. As the results show, this paper discovers that after this company and its competitors adjusted their charge policy, the customer defection problem occurred. Customers preferred to quit from their present network after they found more suitable charge scheme. It is common that the customers that have leaved to return to the old network, which indicates that some brands of the company compete severely with each other and that the company enjoy high customer approval at network coverage and phone communication quality.In order to solve the problems above, this paper puts forward to utilize customer retention strategy in customer relation management and suggests to SZ Mobile Company that the significance of customer retention to a company's competition strength must be fully realized, that the key factors affecting customer defection must be...