tions The Telco Churn Handbook consumers from inappropriate prices in the long run, flexible and variable technology components protect the customers' technological investment. Wireless - Handset Protection A good example of this kind of program can be found in the wireless industry. Handset churn is one of the most difficult to manage aspects of wireless churn. In some markets, the customer's handset and the network provider are intimately linked. When customers shop for new handsets, they automatically shop for a new network. This means that, even when customers are very happy with their network service, they will switch to another provider if they are offered newer and better handsets. To address this vulnerability, some wireless providers are creating handset upgrade programs for their loyal customers. Gradiated, Differentiated, and Valuable Service Component The final piece necessary for the new product definition mix is the upgraded service component. To truly differentiate your company you need to provide consumers with service level options. A company that cannot offer various levels of service to different types of consumers might as well embrace the commodity view of their market and attempt to stay in business by delivering the most network for the lowest cost to all consumers equally. BRAND MANAGEMENT, ADVERTISING, AND CHURN Although the product development and pricing functions of the marketing group will play a large role in the development of churn- proof products, the brand management and advertising groups have their own roles to fulfill as well. In Chapter 17 we discussed how advertising and brand management organizations can drive consumers out of the public and into the customer category. This herding mentality, borrowed from the retail industry, has helped many telcos gain the market recognition necessary to compete in the Chapter 23 highly competitive telecommunications arena. Yet, as the industry matures, we must wonder whether the continued support of this model makes sense from a long-ter