Churn Management Towards Customer Satisfaction: a Case of Cellular Operators in Malaysia1

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Muhammad Hasmi Abu Hassan Asaari & Noorliza Karia (2000). “Churn Management towards Customer Satisfaction: A Case of Cellular Operators in Malaysia,” Conference Proceeding, The International Conference on E-Commerce: Emerging Trends in Electronic Commerce (ETEC2000), Kuala Lumpur, 21-23 November 2000, 5p.

CHURN MANAGEMENT TOWARDS CUSTOMER SATISFACTION: A CASE OF CELLULAR OPERATORS IN MALAYSIA1 Muhammad Hasmi Abu Hassan Asaari and Noorliza Karia School of Management, School of Management Universiti Utara Malaysia, Universiti Sains Malaysia

06010 Sintok, Kedah ; 11800 Pulau Pinang
mhasmi@yahoo.com, noorliza@usm.my

Abstract Churn and customer satisfaction has been the issue to cellular operators in Malaysia. Every one of them is aware that customer is their lifeblood. Churn is considered as a phenomenon commonly attributed to cellular carriers, and can cause treacherous ways of bleeding of the financial lifeblood out of the company. Presently there are eight types of network, which ranges from analog to digital services in Malaysia. Churn and customer satisfaction factors will be discussed from network services, operations and customer service. Meanwhile, customer satisfaction is considered as strategic parameter that, if optimized in the short run, will yield better long-term results that are critical to overall corporate success. Further, this paper will discuss and identify the churn factors that influence the customer satisfaction. Moreover, the paper will suggest the ways to mitigate the churn and improve the customer satisfaction.

results that are critical to overall corporate success. Further, this paper will discuss and identify the churn factors that influence the customer satisfaction. Moreover, the paper will suggest the ways to mitigate the churn and improve the customer satisfaction in the context of Malaysian cellular industry.

Literature Review
Industry Background
In Malaysia, there are eight “brands” of cellular services, which can be chosen from. Telekom group with its TM Atur450 (011), TMTouch (013), and Mobifon (018), Maxis (012), Celcom with its Art900 (010) and GSM (019), Adam (017), and DiGi (016), provides the services. Further in terms of technology, cellular operators’ systems can be grouped into digital, analog, or both. The digital group are consists of TMTouch, Maxis, Celcom GSM, Adam, and DiGi. Meanwhile, TM Atur450 and Celcom Art900 are analog. On the other hand, Mobifon has both systems – digital and analog. Further by the year 2005, all cellular operators in Malaysia will be operating on digital system as planned by the Ministry of Energy, Post and Multimedia. Recently, the Ministry has setupped the Multimedia Commission as the regulatory body that regulate the industry.

Introduction
Cellular industry in Malaysia has been one of the contributors to the nation’s economic prosperity. Unfortunately, churn and customer satisfaction has been the issue for cellular operators in Malaysia. Every one of them is aware that customer is their lifeblood. Churn is considered as phenomenon commonly attributed to cellular carriers, and can cause treacherous ways of bleeding of the financial lifeblood out of the company. Presently there are eight types of network, which ranges from analog to digital services in Malaysia. Churn and customer satisfaction factors will be discussed on contributions by network services, operations and customer service. Meanwhile, customer satisfaction is considered as strategic parameter that, if optimized in the short run, will yield better long-term 1

Network Services
Network services function is one of the main pillars for a cellular operator in delivering their services. The network services can be discussed on call quality, coverage, and network. From customers’ perspective of call quality, any dropped calls, static and broken conversation during

Paper presented at International Conference on Electronic Commerce (ETEC2000): Emerging Trends in...
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