Study On The Strategy Of Recapturing Lost Customers In Chinese Telecom Industry

There exists fierce competition in foreign telecom industry, and a lot of telecom companies went through great profit losing, and went bankrupts. So foreign telecom companies and professors have studied the problem of customer losing, and put the model of predicting customer losing into practice.Now, Chinese telecom enterprises also encounter the comparative high customer losing rate. What's more, the ARPU(Average Revenues Per Unit)is also decreasing by and by. But the revenue and profit brought by the new customers make Chinese telecom industry neglect the reduction of ARPU. Chinese professors and companies still put great resource on strategy of acquiring new customers, retaining customers. And there is a little discussion on the lost customers predicting, even less of lost customers recapturing. With the more and more serious competition in customer acquiring/grabbing, in the future, the problem of customer losing will be hard, so telecom companies should begin to focus on the lost customers win-back.This paper researches the Chinese telecom companies, collects some information of lost customers, and puts forward hypotheses according to the relevant theory from domestic and foreign specialists. Then tests those hypotheses, and arrives at some useful information to design the good suggestions to win back lost customers.The first part of this article, it introduces the present situation of Chinese and foreign telecom industry; narrates significance, creative, and general frame of this article. Make a review of existing papers and theories, analyze current study outcomes. My paper just is enlightened by all of these theories.The second part is a hardcore of this paper. Generally, from two points of view, one from the telecom companies, calculate the SCLV to decide which lost customer should recapture; and the other from lost customers, telecom companies should plan the win-back strategy in term of lost customers'value.Firstly talks about he key factors which make customers leave and consumption behavior before they leave; then analyzes the probability that can win back lost customers and the SLTV of each lost customer if they come back,segment lost customer in terms of SLTV and win-back probability; Secondly investigates direct lost customers combining to former data from telecom companies to find out the key factors of recapturing, segments lost customers based on customer value; and last discusses the concrete strategy.The third part of this paper summarizes the whole article, point out the limitation and future work.