Read the following mini case study and answer the questions given at the end of the case. Customer Churn at Eircom Eircom is one of Irelands biggest telecommunications service providers with over two million fixed-line and mobile customers, just under 5,000 employees and an annual turnover of around 1.5 billion. Eircom has 20 per cent share of the countrys mobile market, and 40 per cent of the broadband market. Irelands economic recession following the 2008 financial crisis led to increasing competition between mobile network operators and higher levels of customer churn as customers sought better value. Eircom routinely collects structured data on important issues for customers, such as dropped calls, and customer satisfaction with service interactions, such as customer onboarding onto the network. The companys customer satisfaction instrument allows customers to explain in free-text boxes why they have assigned a particular satisfaction score. Eircom has a team of analysts working with data mining tools that allow them to explore both structured and unstructured data. Text analytics help 2 /4 Eircom to understand customer sentiments at different points along their journey, as reported in the free-text boxes. Eircom uses automated churn prediction modelling to enable a quick response when a customers patterns of behaviour indicate a high probability of churn. Eircom has also improved in-store processes and staff training. The analytics team discovered that customer experience during the on-boarding process had a significant effect on the likelihood of churn. As a result, Eircom introduced a new in-store process to enhance the on-boarding experience, based on improving the import of contacts from an old phone to a new one. Questions

In order to reduce the effect of customer churn, what is the mechanism that Eircom had taken for their business?

The customer centric approach is a crucial tool in terms of enhancing the customer relationship, and as a result, it produces a negative relationship between customer churn and customer relationship. To what extent, do you agree with the above statement? Justify your answer.