t is not always the only element that management focuses on. Sometimes, in certain strategic situations, upper management will set a priority on increasing the number of new subscribers regardless of the revenue implications. Although this would only be a short- term goal, it can certainly be a valid one. The chart in Figure 17-1 shows a market situation where this condition would be true. Although this market is experiencing an explosive growth in new customer interest, it will be hard for the firm to focus on anything but headcount. Concern about headcount over revenue typically occurs in only special situations. It often happens when management is concerned about how the company appeals to the investment community. The assumption that a low headcount equates to a low potential value means that a high headcount can attract more investment dollars. Many sharp managers of start-up wireless companies have found this formula to work well in immature markets and industries. For these companies, gaining a temporary and, often times, artificially high number of subscribers helps their long-term survival. eXcellence in Telecommunications The Telco Churn Handbook CHURN MANAGEMENT WEAKNESSES OF THE RETAIL MODEL After establishing that either the headcount or revenue implications will be upper management's driving reasons for addressing churn issues, we come to our next question about churn. Why is it SO difficult for an organization operating in the retail frame of reference to do anything about churn? After all, churn is a relatively straightforward and common business situation. What is it about churn that makes addressing it such a slippery issue? There are actually several reasons. Lack of Responsibility One of the biggest problems with the retail model is the lack of responsibility assigned to people regarding churn situations. Under the retail model, everyone is concerned with only one issue: attracting and closing new business. This drive to close deals with customers is intense for a retailer who must re-win the 