CellC losing customers
CellC had 2.9 million subscribers in 2005 but this figure has dropped to 2,7 million in the past 6 months. The fall in subscriber numbers is due to a drop in the number of prepaid customers which fell from 2.2 million to 1.9 million.
“The drop in the pre-paid market is a result of high levels of churn, which is specific to this segment,” said CellC.
“Traditionally this segment is more price sensitive and susceptible to products which are perceived to be of better value,” added CellC.
According to CellC’s new CEO, Jeff Hedberg, one of the major areas which the company will focus on is customer retention to try and improve the prepaid churn which grew by 8%.
“We need to provide offers that are not only good at connecting people but also good at retaining customers,” said Hedberg.
CellC seems to be doing a good job of launching innovative, attractive cellular packages, but as the CEO noted they now have to work on keeping those prepaid customers.
With Hedberg having identified the prepaid market as a serious money spinner for the company it will be interesting to see how he tackles the issue of prepaid subscribers moving over to other operators.
It will be especially interesting to watch CellC’s plans with the added spice of mobile number portability coming into being on the 18th of September.
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