Harnessing ISM for Customer Churn Management in Mobile Telecommunications Networks

Abstract

Customer attrition in the mobile telecommunications industry poses a multifaceted and expensive challenge, frequently associated with the intricate relationships among subscribers, services, products, and personnel. The churn issue can significantly affect service providers profitability and competitive advantage, requiring a strategic and innovative approach for effective management. This study presents an innovative method of employing Interpretive Structural Modeling (ISM) to manage attrition strategically. The study commences with a comprehensive examination of conventional qualitative techniques employed in churn management, specifically Causal Loop Diagrams (CLD) and Relationship Diagrams (RD). This assessment underscores the advantages and drawbacks of these traditional methods. By outlining fundamental criteria for their critical evaluation, we enhance our comprehension of how they can proficiently tackle the intricate problem of customer attrition. The study subsequently provides a comprehensive exposition of the Interpretive Structural Modeling (ISM) methodology, elucidating each phase of the process and highlighting the fundamental principles that underpin strategic decision-making. This methodology systematically analyzes churn dynamics, emphasizing the complex relationships among customer attrition factors. The primary objective of the ISM model is to facilitate proactive decision-making by pinpointing critical levers that can mitigate customer attrition. Particular emphasis is placed on the pivotal variables in these dynamics, facilitating targeted interventions with a direct and quantifiable effect. Finally, a comprehensive comparison is conducted between the ISM approach and conventional methods such as CLD. This comparison offers strategic insights by highlighting ISM’s strengths in the competitive telecommunications industry. Compared to conventional methods, the ISM is more advanced and more suited to providing proper solutions to various problems associated with churn management, demonstrating its ability to aid in customer retention.