Australia - Industry - Churn

Synopsis

Churn has two aspects; a high level of churn is a real killer for the industry as the costs of acquiring new customers is very high. On the other hand a low level of churn indicates a low level of competition. Churn can also be greatly reduced if the companies involved are putting more emphasis on customer service. Bundling of products or a few phone calls per year to the customer could reduce churn to 1 or 2%. However, the industry doesn’t have a good track record in customer services and is much better in price competition, so churn will remain with us for many years to come. By 2007 both broadband and mobile churn were up again. The report also provides stats on this topic.