re customer base is not a good idea. Some of the more notable reasons eXcellence in Telecommunications The Telco Churn Handbook Not all of your customers are worth keeping. Different customers have different values to your compa- There is no need for churn proofing before it becomes nec- essary because it will cost you revenue that you don't have to spend yet. Not All Customers Are Worth Keeping The major reason for not investing a large amount of money in the churn proofing of your customer base is because you, undoubtedly, have a group of customers that are not worth the investment. Besides the fraud and credit problem customers that every company encounters, it is likely that your company will have a significant group of customers that are not profitable to you or are only marginally profitable. To invest money in the churn proofing of these customers makes no economic sense. This is the reason that a large investment in customer service, in the creation of 100 percent coverage, or in a 100 percent high quality network is not an especially good idea. Although some customers are not worth investing in, as we have discussed, your company must make sure it invests in the retention of its more valuable customers. Premature Churn-Proofing Is Expensive The final reason to delay or forgo large scale, blanket churn proofing activities is that they can cost your company a lot of money that it may not have to spend. Responsibly investing in the prevention of churn is certainly a good idea, but it makes no sense to invest in a churn prevention activity before it is absolutely necessary. For example, let us assume that you know that your competition could, at any time, decide to offer your customers a greatly reduced rate for services. In order to churn-proof these customers you could offer them a greatly reduced rate for services now, before the competition has a chance to tender the offer. This makes sense from one perspective; the customers will probably be retained (assuming all of the other satisfaction factors are b