ation. 3) Initiate Your Own Predatory/Reacquisition Activities For the less sophisticated, or the unprepared carrier, churn counter- measures are not an option. They may, instead, to try to make up for Figure 7-5: You will loose money the revenue lost by launching their own predatory campaigns. These campaigns are geared toward trying to win back customers, and also to try to acquire new customers from the competition. As with the churn countermeasures scenario, this approach also has a price tag associated with it. eXcellence in Telecommunications The Telco Churn Handbook No Matter What You Do, You Loose Clearly, as stated earlier, when churn conditions exist you will loose money. The trick is figuring out how to minimize the damage. Better To Manage Churn Than For Churn To Manage You When churn conditions exist, your management will have to make a number of critical decisions that will impact your profitability and possibly even your long-term viability. They need to need to institute a program to manage churn. THE CUSTOMER FACTOR All the discussions about market share, churn strategy, and revenue loss are certainly important. More critical, however, is to understand that churn is behavior exhibited by customers not markets. This human side of churn must be taken into account when it comes time to put together a churn management strategy. When is comes to customers and churn, we need to remember that: A. All customers are not of equal value B. Customers churn for complex reasons C. Firms act as large groups, customers react as individuals D. Customers represent a revenue stream Customer behavior can be anticipated Some customer behaviors can be predicted All Customers Are Not Of Equal Value A very important fact to know and understand is that all customers are not of equal value. While a firm that is focused on rapid growth and expansion is concerned only with the acquisition of as many customers as possible, regardless of their identity, the churn management organization cares about this a great deal. Chapter 