Analysis On The Telecom Customer Retention Policy In Stable Period Of Customer Relationship Life Cycle Based On The SEM

Chinese telecom operators are facing more drastic market competition along with the market development and naissance of new technology. To the telecom operators, the main problems in the market competition are——the influence of the new technology; the hardness of the increasement of new customer; customer losing and switching; the importance of customer increasment. Therefor the competition between the telecom operators has been changed from customer increasment in quantity into customer retention and customer value. So the telecom operators have to pay more attention on customer; to reinforce the management of customer relationship; to actualize useful and efficacious customer retention policy. This paper tries to summarize a theory of customer relationship in telecom market, and then establish a customer retention model and policy based on that theory.In order to achieve this goal, in the second chapter, this research gives a brief introduction of the customer relationship theory, choose the telecom customer relationship life cycle as the keypoint of the research, and emphasize the stable period. In the third chapter, this paper discusses the character of the customers in the stable period of customer relationship life cycle and the reason of customer losing. The forth chapter gives the general process in the customer relationship stable period for the telecom operators, and then analyses the factors which influence the customer retention in this period. These factors are: using experience; switching barrier; inductive factors; customers's satisfaction; customers's loyalty. The relationship between these factors is reseached and a hypothetic model is established subsequently. In order to validate the hypothetic model, the fifth chapter collects data by questionnaire and uses them to analysis the customer retention model based on structural equation model (SEM). The optimum model of customer retention is gained then. From all these works we have a better understanding of the relationship between these factors and how they work. In the end the customer retention policy is established and explained. The last chapter summarizes the meaning and the contribution of the reseach practically and theoretically, and brings forword the prospect of ferther reseach.