 churn. It also means that, when you see decreasing headcount numbers, you are not getting a good reflection on churn. The churn might be much worse than indicated by these reports. Accurate Headcount Reports for Churn The best headcount reports for providing accurate churn numbers consist of the following information: The number of customers acquired this month Added to the number of customers enrolled last month Minus the number of customers enrolled at the end of this month Equals the real churn number for the month. eXcellence in Telecommunications The Telco Churn Handbook Reports of this nature, to be of real value, should provide this calculation on a monthly basis for every month since the firm began doing business. Churn Headcount Report Last Month Enrollment 1.300.000 1.303.000 1.311.500 1.303.900 1.303.700 1.301.200 1.298.200 Net Adds for Month 10.000 20.000 8.000 3.000 4.500 5,500 1.000 Total before Churn 1.310.000 1.323.000 1.319.500 1,306,900 1.308.200 1.306.700 1,299,200 Voluntary Churn 5,000 7,500 10,100 2,200 4,000 8,000 1,000 Involuntary Churn 2.000 4.000 5,500 1.000 3.000 End of Month Enrollment 1.303.000 1.311.500 1.303.900 1.303.700 1.301.200 1.298.200 1.297.650 Figure 20-1: A Typical Churn Headcount Report Account Cancellation Metrics Although every telco has the ability to create headcount reports, it is actually much more difficult for many of them to acquire accurate account cancellation data. Systems are usually not built to track cancellation events, and customers often do not officially cancel but simply stop using the service. The only way to develop accurate reports by cancellation is to use a customer database that tracks each customer as an individual and reports on changes in status. Revenue Metrics Headcount and cancellation reports are useful, but the best reports are those that show not only the number of customers that have left the company in a given month but also what this has cost the firm in unrecognized revenue. Revenue loss or opportunity cost churn reports give manageme