By Sally Watson, 16 December 1999 15:23
NEWS The SAS Institute has this week unveiled its Churn Management Solution (CMS), which is designed to help telecommunications companies retain customers. Churn is a business term describing customer loss rate. Using SAS datawarehousing software, the CMS technology gathers information from operational systems such as networking and billing ready for analysis. The company's Enterprise Miner software for data mining is then used to identify customer behaviour patterns. According to Alistair Sim, SAS UK's head of strategy, churn costs European and US telcos an estimated $4bn annually. "With annual churn rates of around 25 to 30 per cent, it typically takes three years and costs up to $700 in Europe for a telecommunications company to replace each lost customer with a new one," he said in a statement. T-Mobil, the mobile phone division of German telco, Deutsche Telekom, has already put the software into action. Detlef Wessling, head of database marketing at T-Mobil, claimed the company had been able to identify 30 per cent more 'churners' with the SAS package.
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