 Product Development, and Brand Manage- ment: Reinforcement, Not Recruitment Product Development and Churn Developing Churn Proof Products Developing Products that Morph with the Market Developing Products That Sell Other Products The Relationship Plan Approach Killer Product Package Components A Flexible and Renegotiable Pricing Component A New Technology Upgrade Component Gradiated, Differentiated, and Valuable Service Component Brand Management, Advertising, and Churn Post Sales Advertising - Auto Manufacturer Example Reinforcement for Telecommunications eXcellence in Telecommunications The Telco Churn Handbook Chapter 1 CHAPTER 1 CHURN IN TELECOM: THE GOLDEN OPPORTUNITY Churn. It is the number one topic for telcos around the world. Many people have varied opinions about churn, but everybody agrees on one thing: churn is bad. Granted, churn brings with it many negative consequences, but we believe that it is probably the best thing that can happen to your organization. Our hope is that, by the time you get to the end of this book, you will understand why we view churn as a golden opportunity. Talk to anyone involved in marketing within the telecommunica- tions industry today, and the odds are good that your discussion will quickly turn to the issue of churn. Churn, it seems, is a big deal to many telecommunications providers, and for good reason. WELCOME TO THE WORLD OF CHURN If you are a member of the management team for a telecommuni- cations firm almost anywhere in the world, then this story probably hits a bit closer to home than you would like to admit. Churn has found the telco. Whether you are a wireless provider or a long distance carrier, a competitive local exchange carrier (CLEC) or an incumbent, churn is, or will very soon be, the single most im- portant issue that you will be focusing on when it comes to customer management, advertising, and sales. For many telco executives, fig- eXcellence in Telecommunications The Telco Churn Handbook uring out how to deal with churn is turning out to be the key