Subscriber acquisition and retention costs are the largest controllable operating expense for most operators. In spite of major efforts, however, many companies have failed to make a sustained long-term reduction without harming their acquisition and churn performance.
We have seen the best operators make bold moves to overhaul their investment models or achieve step changes in their customer-investment management capabilities. These leading operators have succeeded in reducing their customer investment budgets by 10-20% without harming their acquisition, base margin or churn performance.
Such results don’t necessarily require multi-year, corporate-wide initiatives; in fact, significant value can be attained within four to six months.
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