From one perspective, the previously mentioned staff reductions will save actual dollars, but from another perspective, transferring existing staff to other functions will save budgeted dollars. Moving service technicians into full-time preventive maintenance has a more tangible impact on the bottom line, but one that may not be so obvious at first glance. It is the value of customer goodwill. Having a dedicated full-time staff performing an effective preventive maintenance programme means that the number of service calls will continue to decrease, while system reliability and service quality will improve. A better system results in happier subscribers.
Happier subscribers mean less churn.
Churning costs Consider the value of a subscriber, both from a capital perspective what the subscriber is worth when the system is sold and a gross revenue perspective. As you can see, each subscriber is valuable. Churn is categorised as controllable and noncontrollable. Here, too, the actual figure will vary from market to market. In other words, controllable churn needs to be reduced from 2,000 subscribers per year to 1,940 per year, by saving 60 subscribers.