tion measure. That means that the success of an advertising, sales, or customer service activity is no longer measured in terms of the net numbers. Instead, successes are applied to specific groups of customers. For example, one way to measure the effectiveness of the sales organization is net adds (the net number of new customers added since last month). Commissions, bonuses, and the success rate of the sales group hinges on a high net adds number. What we would like to see instead is a KPI based on net adds for the major customer segments the company is targeting. Instead of a general target of, say, 100,000 net adds, the sales group's goals are met after they have added: 25,000 customers from the teenage segment 50,000 customers from the businessperson segment 10,000 customers from the student segment 15,000 customers from the retired persons segment By forcing all customer units to accomplish their objectives against the backdrop of the specific types of customers the company is interested in having a relationship with, the nature of the relationships get better immediately. eXcellence in Telecommunications The Telco Churn Handbook Setting Segment Targets with WAR Metrics Making business units more sensitive to the identities of the people they are interacting with is only half of the KPI revolution. All business units also need to have a set of goals to accomplish. The complete set of metrics is known as the WAR objectives. WAR is an acronym that stands for Wallet share (the average revenue that the user provides) Acquisition (the number of new customers acquired) Relationship (maintenance of customer loyalty) We will want to make sure that all business units have segment- based KPIs, not only for their primary objective (acquisition) but for the others as well. For example, what would happen to the churn situation at your firm if sales people were paid only half of the commission when the customer is first acquired and the other half once the customer has stayed enrolled for an entire year? You can be sure 