Creating a Proactive Churn Retention Strategy in a Telecommunications Company Through the Application of Design for Lean Six Sigma

This study investigates the use of DFLSS to mitigate customer churn in a prominent telecommunications provider facing challenges from competitive pricing, regulatory changes, and evolving customer expectations. Employing the DMADV methodology, the research developed a proactive retention strategy using techniques such as propensity modeling, customer segmentation, and predictive analytics to identify churn drivers. Targeted interventions, which include future-dated loyalty discounts, outbound retention campaigns, and process optimization through DOEs were implemented and pilot-tested. The pilot involved approximately 5000 high-risk customers per month, resulting in a 6% increase in customers under contract, a 2% improvement in rates, and a 6% reduction in repeat call rates, equating to 2880 fewer calls annually. Financially, the strategy preserved an estimated 10% in revenue over 12 months, while operational enhancements delivered a 2% cost reduction annually through reduced repeat calls. These findings highlight the importance of proactive outreach and continuous improvement in managing churn. Limitations of this study include the narrow market scope and the need for broader validation. The research contributes to the limited literature on LSS in Western telecom markets and provides a replicable model for practitioners. Future work may explore integrating artificial intelligence to enhance churn prediction and retention strategies.