Operators that adopt cloud-based services can reduce their churn by as much as 50 percent. That's according to new data on customer behavior released by Barcelona-based fonYou Telecom, a mobile cloud-telephony provider.
Looking at numbers from the past six months, fonYou says it's clear that the addition of a cloud-based, second-line service or the adoption of cloud storage and service management tools both reduces churn and increases ARPU.
“In terms of churn, the numbers vary between pre-pay and contract customers," said Nunez Mendoza, fonYou CEO, “and there are some differences that are age and gender related. We have found churn reduction is at its greatest among the younger contract customers, with rates among those in the 25-30 age group falling by as much as 50 percent."
fonYou’s data shows that churn was reduced across all customer groups by between 20 and 50 percent, with an average reduction of about 30 percent. With accepted industry-norm figures putting the cost of churn at €300 (approximately $393 U.S.) per customer per year, fonYou says the potential savings available to operators through churn reduction are considerable.
In terms of increased ARPU, fonYou said that customers using the company’s cloud-based services make as many as 35 additional calls each month.
“Again there are variations regarding the different types of contract," said Mendoza, “but from the numbers we are seeing, it would be reasonable to assume an average ARPU increase of more than two Euros, per customer per month."
fonYou provides cloud telephony services in Spain and South Africa. In Spain, the company has its own virtual mobile network and provides a second-line service to Telefónica for the Movistar network. In South Africa, fonYou’s platform is used to drive mobile network operator Cell-C’s MyTools service, which provides a range of cloud-based services to the operator’s customers.