Thursday, September 14, 2006

Customer Loyalty versus New Adds

All the talk about low BB pricing is false. Most of the low pricing is with a bundle and/or is introductory. TechDirt points out that this is not helping customer churn numbers, since people are switching back and forth to get the best deal. All short term thinking. DSL Reports about How New Broadband Customers get all the love. There aren't any loyalty programs in place. (I see this from the agent channel, since most telcos only allow the agent to bring in new business, not manage the client r-ship. This also encourages churn). But - as I said yesterday during a phone call with a client - it all comes down to what metric Wall Street is using this quarter (or year) to determine your value. It was revenue; then ARPU; now it's net adds.

What metric are you using? Do you have a plan in place to increase that metric? Is most of your focus on that plan? Or is it easily distracted by this, that, and putting out fires?

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