Final Project Presentation: Analyzing Churn Market in the Use of Mobile Phone Provider in Bandung

FINAL PROJECT BY:IHSAN NUR HADI19007007

ANALYZING MARKET CHURN IN THE USE OF

MOBILE PHONE

PROVIDER IN BANDUNG; A CASE STUDY OF PT

INDOSAT TBK.

INDONESIA

1

Agenda

Background

Question to be Answered

Methodology

Findings & Analysis

Result Analysis

Recomendation

Agenda

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IndonesiaQuestion to be answered Methodology Findings & Analysis Result AnalysisBackground Reccomendation

33 Provinces≥10.000 islands

source: http://id.wikipedia.org/wiki/Daftar_provinsi_Indonesia

Communicate all around

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http://id.wikipedia.org/wiki/Daftar_provinsi_Indonesia

http://id.wikipedia.org/wiki/Daftar_provinsi_Indonesia

Question to be answered Methodology Findings & Analysis Result AnalysisBackground Reccomendation

9 Cell PhoneProviderIndonesia

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5


6


? ??

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Questions to be Answered

1. When was the last time the user change the cell phone provider?

2. What is the most frequent provider that the user currently use? What is the reason the user using this provider?

3. What kind of characteristic that makes differentiation between loyal customer & switcher customer?

4. What factors that make the user stay on their cell phone provider? ?

Questions to be Answered Methodology Findings & Analysis Result Analysis ReccomendationBackground

8

Research Design

Problem Identification Explorative Research:Literature Study Descriptive Research

Quantitative Data Collection:Distributive QuestionnaireData Analysis

Conclusion Final Report

Research DesignQuestion to be Answered Methodology Findings & Analysis Result Analysis ReccomendationBackground

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Methodology

• Location Bandung• Sampling Size 210 Respondent (using Slovin Method)

Male and Female, 15-50 years old

Live in Bandung

• Method" " Quantitative Research

• Product usage All Operator

Methodology

Question to be Answered Findings & Analysis Result Analysis ReccomendationBackground Methodology

2,234,231

1+2,234,231*0.072

= 210 respondent

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Findings and Analysis

Question to be Answered Methodology Findings & Analysis Result Analysis ReccomendationBackground

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Respondent Profile

48%52%

UrbanSuburban

Loyal Switcher New

12%

38%

50%

AgeUsage Pattern

Living Area

Can be seen the loyal customer are more dominant than the switcher customer16% the rest of it classified as the new customerAge of respondent is ranged between 20-24 years oldBy its demography, 48% of the customer live in the outer city, then 52% live in the inner city

Question to be Answered Methodology Result Analysis ReccomendationBackground Findings & Analysis

20%

20%

20%

19%

20%

15-19thn20-24thn25-29thn30-40thn40-50thn

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Profile Highlight

Loyal Switcher

38%

50%

Usage Pattern

• Most of the loyal customer dominated by the age between 40-50 years old. • Most of the occupation are employee• The loyal customer mostly live in the outer city• Duration of the usage mostly more than 12 month

Loyal Customer

Switcher Customer• Almost 50% of the customer like to change their provider card, age between 15-24 years old• Mostly the occupation are students• Mostly live in the outer city•Duration of the usage mostly between 1-6 month


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Loyal Switcher

38%

50%

For Loyal CustomerUsage Pattern

Question to be Answered Methodology Result Analysis ReccomendationBackground

14%

14%

17%24%

31%15-19thn20-24thn25-29thn30-40thn40-50thn

48%52%WomanMan

Age

Gender

3%4%

7%

12%

74%

< 1Month1-3Months3-6Months6-12Months> 12Months

Lifetime

9% 9%

5%

10%29%

11%

8%

16%

3%StudentCollege StudentHousemaidMerchantEmployeeProfessionalBusinessmanTeacherRetireman

47%53%UrbanSuburban

Occupation

Living Area

Findings & Analysis

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Loyal Switcher

38%

50%


44%

38%

15%3%

15-19thn20-24thn25-29thn30-40thn

Age

44%56%WomanMan

Gender

6%

43%31%

14%

6%< 1Month1-3Months3-6Months6-12Months> 12Months

Lifetime

41%

34%

1% 2%

18%

3%1%

StudentCollege StudentHousemaidMerchantEmployeeProfessionalBusinessman

Occupation

45%55%

UrbanSuburban

Living Area

Usage Pattern

For Switcher Customer

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Brand Usage & LifetimeLoyal Customer

Brand Usage• Loyal Customer in Bandung using IM3

Card and Simpati Card by 39% and 25%. Then followed by other provider like Esia, Kartu As, and also XL

Lifetime• All card user, Axis, Flexi, XL, and mentari

using their card more than one year.• IM3 and Simpati card usage are evenly

from the time less than one month until more than 12 months.

Switcher Customer

Brand Usage• Mostly switcher Customer in Bandung

using the IM3 card by 33% . Then followed by other provider like Simpati, Kartu As, and also Esia.

Lifetime• All the XL customer using their card more

than one year.• Otherwise, IM3 and Simpati card are

evenly from the time less than one month until more than 12 months.


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Behavior Loyal CustomerBrand Usage & Lifetime

BrandLifetimeLifetimeLifetimeLifetimeLifetime

TotalBrand<1month 1-3month 3-6month 6-12month >12month

Total

As 1 8 9

Axis 1 1

Esia 1 2 1 7 11

Flexi 1 1

IM3 1 1 3 4 24 33

XL 6 6

ment 3 3

Simpati 2 1 1 6 30 40

3 0

Total 3 4 6 11 80 104

Question to be Answered Methodology Conclusion RecommendationBackground Findings & Analysis

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http://images.google.co.id/imgres?imgurl=http://doniismanto.files.wordpress.com/2009/09/flexi2.jpg&imgrefurl=http://doniismanto.wordpress.com/2009/09/14/150909-target-penjualan-flexi-muslim-capai-30/&usg=__ktfar9nEKICTqauNt5Qki4sk9YM=&h=642&w=945&sz=148&hl=id&start=1&tbnid=dNlzAP1jrpVVLM:&tbnh=101&tbnw=148&prev=/images?q=flexi&gbv=2&hl=id







BrandLifetimeLifetimeLifetimeLifetimeLifetime

TotalBrand<1month 1-3month 3-6month 6-12month >12month

Total

As 2 3 1 6

Axis 2 2 4

Esia 3 2 2 7

Flexi 1 1

IM3 5 15 7 3 2 32

XL 1 1

0

Simpati 1 2 2 2 7

5 10 5 2 22

Total 13 33 19 9 6 80

Question to be Answered Methodology

Behavior Switcher CustomerBrand Usage & Lifetime

Conclusion RecommendationBackground Findings & Analysis

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Behavior : Reason to Buy AnalysisLoyal customer

Switcher customerFriend & family using the same cardCheaper priceGood signal quality

Lot of people using mentari cardcomfortable with this provider

Cheap tariffGood signal qualityLot of bonus

Have a lot of community groupLot of friend & family using simpati card

Cheap SMS tariffGood signal quality

Good networking Cheap call tariff

Good coverageCheap internet tariff

Very cheap call tariffsave money from buying “pulsa”

Free internet accessfollowing friend using Three provider


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• Cheap SMS price to all operator• Bonus SMS• Good Signal & Wide Coverage

• Frugal• Bonus SMS & Voice Call

• Cheap Price• Want to try the provider • Cheap Call Tariff

• Cheap Price• Lot of friends using esia• Bundling Program

• Family using flexi provider

• Free SMS• Cheap Voice Call tariff• Lot of IM3 users

• Good Signal• SMS Program• Lot of Bonuses

• Lot of friends using IM3 provider• Lot of community• Cheap internet service

3-6 month 6-12 month >12 month

Behavior : Reason to Buy Loyal Customer


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• Very into the mentari card• Friends & Family using mentari card

•Good signal•Cheap voice call tariff

• Partner and family using simpati card• Good signal

• Cheap price• Good signal• Less failed calling• Have community

• Family using XL provider• Good signal• Wide coverage• Since first time have cellphone

using XL provider

Question to be Answered Methodology

Behavior : Reason to Buy Loyal Customer

Conclusion RecommendationBackground Findings & Analysis

3-6 month 6-12 month >12 month

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• Interest from advertising• Lot of good features

• Good signal quality• Lot of friends using simpati

card• Cheap SMS tariff

• Just want to try• Lot of friends using esia

provider

• Cheap price• Following friends• Cheap voice call tariff

• Previous handphone is missing

• Cheap tariff• Free SMS• Call the same provider is

cheaper

• Cheap internet tariff• Cheap SMS tariff• Following friends• Voice call package

• Lot of friends using simpati card• Following family using

simpati

• Cheap tariff• Wide coverage• easy to access internet

• Good signal quality• cheap internet tariff

Behavior : Reason to BuySwitcher Customer

<1 month 1-3 month 3-6 month


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Double Card Analysis


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Behavior : Double Card AnalysisLoyal Customer•21% of the total respondent using more

than one card provider in Bandung

•51% XL user using two card provider, the second card provider that they use are Kartu As, IM3, and Mentari card

•27% IM3 user using more than one card provider

Switcher Customer•19% of the total respondent using more

than one card provider in Bandung.•All the flexi and XL card provider users are

using more than one card provider.

•There is around 21% of IM3 user that using more than one card provider, the second card provider that they use are Simpati and Three card provider.

Question to be Answered MethodologyBackground Conclusion RecommendationFindings & Analysis

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Behavior : Loyal Double Card•21% of total respondent using more than 1 card provider in Bandung•51% XL user using 2 provider. the providers are Kartu As, IM3, and Mentari.•For IM3 users, there are 27% of respondent that using more than 1 provider.

Main ProviderOther ProviderOther ProviderOther ProviderOther ProviderOther ProviderOther ProviderOther ProviderOther Provider

Double Card

Percentage

Main ProviderXL Axis Esia Flexi As Simpati IM3 Mentari

Double Card

Percentage

As 11% 11% 11% 33%

Axis 0%

Esia 0%

Flexi 0%

IM3 3% 3% 12% 3% 6% 27%

XL 17% 17% 17% 51%

Mentari 33% 33%

Simpati 5% 5% 10%

Three 0%

Total 2% 1% 4% 6% 2% 4% 1% 1% 21%


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Behavior : Switcher Double Card•19% of total respondent using more than 1 provider in Bandung.•All Flexi and XL customers are using more than one card provider.•There is around 21% of IM3 customer that using more than one provider. the 2nd providers are

Simpati and Three Card.

Main ProviderOther ProviderOther ProviderOther ProviderOther ProviderOther Provider Double

Card Percentage

Main ProviderXL Esia Simpati Mentari Three

Double Card

Percentage

As 14% 14%

Axis 0%

Esia 0%

Flexi 100% 100%

IM3 7% 14% 21%

XL 100% 100%

Mentari 0%

Simpati 14% 14% 29%

Three 0%

Total 2% 2% 7% 2% 5% 19%

Question to be Answered MethodologyBackground Conclusion RecommendationFindings & Analysis

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Behavior : Reason to Use Another CardAnalysis

Loyal Customer Switcher Customer

Cheaper Call Tariff

Cheaper Internet Tariff

More friends using XLCheaper Call Tariff

cheaper call to home

Very cheap to call the same provider


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Behavior : Reason to Use Another CardLoyal Customer

Main Card Provider

Another Card ProviderAnother Card ProviderAnother Card ProviderAnother Card ProviderAnother Card ProviderAnother Card ProviderAnother Card ProviderAnother Card ProviderMain Card Provider

XL Axis Esia Flexi As Simpati IM3 Mentari

As • Cheap call tariff• To call the same

provider (axis)

• Cheaper price• More community• Lot of friends using

esia

• Pelanggan banyak yang pakai simpati

IM3• Internet access is

faster than IM3• Call the same

provider

• Cheaper call price with flexi• More friends

using flexi

• Girlfriends using As provider

• More known number

XL• Just want

to try• Cheap

SMS tariff• Better signal

quality

Mentari• more friends

using simpati card

Simpati• more friends using

esia to call• Cheap tariff


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Behavior : Reason to Use Another CardSwitcher Customer

Main Card Provider

Another Card ProviderAnother Card ProviderAnother Card ProviderAnother Card ProviderAnother Card ProviderMain Card Provider

XL Esia Simpati Mentari Three

As• Better signal

quality

Flexi • Good number

IM3•Wider coverage• Backup number if

IM3 have no pulsa

• Free voice call• Lot of pulsa from

bonuses

XL

• Cheap voice call tariff when night

Simpa1 • Bundling HP XL

• Cheap call the same provider• More friends using

esia provider


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Switcher card flow process

• In the first card, simpati card is dominant (34%) and mentari card (24%)

• Then the second card flow, almost all of them change their card, because of some factor, like the card is missing, family/friends change he card provider, and also the tariff and quality its provider

• Third card flow can be seen that the user slightly change their provider to im3, but there is some of them that change into another card like Kartu As, Esia, Simpati, Three, XL, and mentari

• Then at last 34% of respondent change the card into im3 card and followed by the other card provider.


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Life Cycle Process15% As

7% im32% simpa. 2% simpa. 2% simpa.

15% As7% im3

5% Three7% Three 7% Three15% As

7% im35% Three

7% Three 7% Three15% As 2% simpa. 2% XL7% Three 7% Three15% As

5% XL2% mentari 2% im3 2% im3

15% As5% XL

2% As 2% As 2% As

5% Esia2% XL

5% im3 5% im3 5% im35% Esia2% im3

5% im3 5% im3 5% im3

2% Fren 2% simpa. 2% Three 2% Three 2% Three

12% im3

2% Fren7% As

2% im3 2% im3

12% im3

2% Three 7% As 2% simpa. 2% simpa.12% im3

2% As7% As

2% As 2% As12% im3 2% XL 2% XL 2% XL 2% XL

12% im3

2% simpa. 2% simpa. 2% simpa. 2% simpa.

24% mentari

10% As

2% Esia 2% Esia 2% Esia

24% mentari

10% As2% im3

5% simpa. 5% simpa.

24% mentari

10% As2% simpa.

5% simpa. 5% simpa.

24% mentari

10% As

7% im3 7% im3 7% im324% mentari 7% XL



5% Three2% Esia 2% Esia

24% mentari

7% im3

5% Three2% Three 2% Three

24% mentari

7% im3 2% As 2% As 2% As

24% mentari

7% im32% simpa. 2% Flexi 2% Flexi

34% simpa.

10% As5% Esia 5% Esia 5% Esia

34% simpa.

10% As5% Esia 5% Esia 5% Esia

34% simpa.

10% As

7% im3 7% im3 7% im3

34% simpa.

10% As

7% im3 7% im3 7% im3

34% simpa.

10% XL

7% im3 7% im3 7% im3

34% simpa.

10% XL2% Esia

5% Esia 5% Esia34% simpa.

10% XL5% im3

5% Esia 5% Esia34% simpa.

10% XL5% im3

5% im3 5% im3

34% simpa.

7% im32% simpa.

5% im3 5% im3

34% simpa.

7% im35% As 5% As 5% As

34% simpa.

7% im35% As 5% As 5% As

34% simpa.

5% mentari2% Esia 2% simpa. 2% simpa.

34% simpa.

5% mentari2% XL 2% im3

5% As

34% simpa.

2% XL 2% im3 2% As5% As

7% XL2% simpa. 2% Esia 2% Esia 2% Esia

7% XL 2% As5% im3 5% im3 5% im37% XL

2% Three5% im3 5% im3 5% im3

Question to be Answered Methodology Findings & Analysis Conclusion RecommendationBackground

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Life Cycle Process15% As

5% Three12% Three 12% Three 12% Three15% As

5% Three12% Three 12% Three 12% Three15% As

24% As

12% Three 12% Three 12% Three15% As

24% As


24% As


24% As17% As 15% As 17% As

5% Esia 24% As17% As 15% As 17% As

5% Esia 24% As17% As 15% As 17% As2% Fren

24% As17% As 15% As 17% As

12% im3

24% As17% As 15% As 17% As

12% im3

24% As17% As 15% As 17% As

12% im3

24% As17% As

17% Esia

17% As

12% im32% Fren

15% Esia 17% Esia17% Esia

12% im3

24% im3


24% mentari24% im3


24% mentari24% im3


24% mentari24% im3


24% mentari24% im3


24% mentari24% im3

34% im3

2% Flexi

17% Esia

24% mentari24% im3

34% im337% im3

2% Flexi24% mentari

24% im3

34% im337% im3 34% im3

24% mentari24% im3

34% im337% im3 34% im3

24% mentari24% im3

34% im337% im3 34% im3

24% mentari

5% Mentari34% im3

37% im3 34% im3

34% simpa.

5% Mentari34% im3

37% im3 34% im3

34% simpa.

10% Simpa.

34% im337% im3 34% im3

34% simpa.

10% Simpa.

34% im337% im3 34% im3

34% simpa.

10% Simpa.

34% im337% im3 34% im3

34% simpa.

10% Simpa.

34% im337% im3 34% im3

34% simpa.

29% XL

34% im337% im3 34% im3

34% simpa.

29% XL

34% im337% im3 34% im3

34% simpa.

29% XL

34% im337% im3 34% im3

34% simpa.

29% XL

2% Mentari

37% im3 34% im3

34% simpa.

29% XL 12% simpa.

37% im3 34% im3

34% simpa.

29% XL 12% simpa.15% simpa. 15% simpa.

34% simpa.


34% simpa.


34% simpa.


7% XL

29% XL

7% XL

15% simpa. 15% simpa.

7% XL

29% XL

7% XL

15% simpa. 15% simpa.

7% XL

29% XL

7% XL2% XL 2% XL


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Conclusion

• The most occupation are employee & workers

• time of usage more than 12 month

• stay with the provider because they feel comfortable and satisfied with their provider

Switcher Customer

• Mostly the occupation are high school and college student

• Time of usage between 1-6month

• Change their provider because they haven’t find the comfortable provider

Loyal Customer


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Recommendation• Increase the service quality

•Promotion Media (Twitter)

Main factor customer change the provider

Increasing the brand awarenessIncreasing customer perception about Indosat


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Program Recommendation

•Bundling Package Family With bundling package family, we can get the entire family

to use the provider. Also giving the special promo, special tariff and feature, they will stay on that provider

•Community Based Program By finding and offering special program to one community,

we can get more customer

Question to be Answered Methodology Findings & Analysis ConclusionBackground Recommendation

35

Thank You

Thank You

36

Education

Final Project Presentation: Analyzing Churn Market in the Use of Mobile Phone Provider in Bandung