Managing Customer Churn by Designing Effective Marketing Strategy : A Case of Zong

Abstract

Zong Pakistan is one of the most renowned mobile network operators in Pakistan. The company has recently expanded its services and now provides one of the fastest running internet services by using not only sim cards but many various types of devices like Mobile Broadband (MBB) Device. The launch of these Mobile Broadband Devices was a huge success but the company was still facing some issues which were minimizing the outcome and revenue that was being generated through them. We provided the much needed consultancy to Zong Pakistan by identifying one of the major problems, Customer Churn and providing appropriate strategies to overcome this issue. Previously, a lot of work has been done to identify the reasons that cause customer churn, and to overcome this issue by eliminating those reasons. We studied some of them in detail and thought of new efficient ways to resolve this issue. To resolve problems like customer churn, we had to compare the problems that ZONG was facing with other major competitors like Telenor, Warid and PTCL. Things like, having numerous manufacturers for the MBB devices and giving unrealistic and unachievable targets to its franchises were the root causes of this problem that the company had been facing for quite a long time now. The MBB devices are manufactured by Huawei, FibreHome and ZTE. The design and quality of the device manufactured by one manufacturer is different from the rest. A single product having numerous types is the first reason why customer can think that the quality of the product might be compromised. Customer churn was a problem that gave rise to some other problems as well, such as brand name being spoiled. To minimize customer churn and all the problems related to it, we presented 6 a comprehensive and efficient marketing strategy that would not only reduce the chances of customer churn but also enhance the revenue and improve the brand name of the company. We gave importance to social media as well, which is one of the rising and undeniable means of marketing. Furthermore, we focused on improvement of Sales Management within the company. For finding all the relevant information to diminish customer churn, we contacted our external guide Mr. Arsalan and after a lot of research, several meetings and discussions, we were finally able to make an effective strategy to minimize the issue.