Back in the early 2000s, customer retention wasn’t even a topic of discussion in the telecommunications industry. We held a monopoly, and customers stayed with us out of necessity rather than loyalty or incentives. Fast forward a few years to the 2007-2008 recession, and everything changed. Customers were losing jobs, making household cutbacks, and seeking cheaper alternatives—regardless of service quality—just to save money. Suddenly, retention became a priority, but the approach was far from strategic.
The Early Days of Retention – A Missed OpportunityAt the time, the industry's response to customer churn was reactive rather than proactive. When a customer called to leave, the only offer we had to retain them was a free email address—yes, seriously, that was it. Then came another flawed strategy: forcing customers to submit a 30-day written notice if they wanted to cancel. This placed an unnecessary burden on customers, particularly the elderly, who made up a large portion of our base and relied on pensions. It was a shortsighted, company-first approach that failed to consider the customer's needs.
This didn’t sit well with me. I knew something had to change.
Designing a Retention Strategy That WorkedI took the initiative to build a structured retention strategy from the ground up. My approach was centered around:
Segmenting customers to understand their value and behavior.
Developing tailored packages and toolboxes based on customer needs and revenue.
Tracking call volumes and churn reasons with newly designed dashboards.
Staying ahead of competitors by analyzing market trends and customer expectations.
Presenting findings weekly at operational meetings to drive continuous improvements.
The results? We transformed retention from an afterthought into a strategic pillar of the business.
The Corporate Mindset: Retention as a Negative StoryIn many organizations, retention is seen as a problem rather than an opportunity. Businesses often resort to tactics like contract fees or aggressive debt collection approaches, treating departing customers as a loss rather than a learning experience. But if you truly believe in your product or service, shouldn’t you be asking why customers want to leave? Understanding these reasons is the key to reducing churn and building a stronger business.
Turning Retention Around – A Success StoryWhen I moved into my next corporate role, retention was treated as a debt collection function rather than a customer engagement strategy. Meanwhile, sales teams were hailed as the heroes, despite the fact that 21% of customers were leaving within 24 months—before the company had even recouped its investment in them.
I immediately got to work:
Listening to calls and reviewing customer interactions.
Analyzing processes, tools, and competitor offerings.
Rewriting scripts and providing soft skills training.
Redesigning the customer journey with retention in mind.
The impact? Over three years, churn was reduced by 50%.
The Reality: Retention Deserves More AttentionI know customer retention isn’t the “sexy” topic in boardrooms, but it’s real—and it’s critical. If a business ignores retention, it’s only a matter of time before its bottom line suffers. A strong retention strategy isn’t about forcing customers to stay; it’s about making them want to stay. And that is where true business success lies.
Hi, I’m Caroline McGovern, a seasoned Telecoms Professional with over 20 years of senior operational management experience, specializing in sales, service, and customer retention. Throughout my…
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