| Thomas T. Veldhouse 2006-07-27, 10:33 pm |
| In alt.cellular.sprintpcs SMS <scharf.steven@geemail.com> wrote:
>
> I was actually amazed when I learned that the churn rate was a monthly
> number (well actually an average of each of the quarter's three months).
> Even at Verizon's 1.2% rate, that's still losing 14.4% of your customers
> every year, and Verizon at 1.7% is losing 20.4% of it's customers every
> year. Cingular consistently has more gross additions than any carrier,
> but their churn is so high, even at the improved 1.7%, that they keep
> losing market share.
That's not what it means. The numbers are not cumulative. If a person
becomes a Verizon customer in July and ceases being a customer in August
[opted not to keep service within the trial period], then they will be a churn
statistic. Thus, each month were there are new adds that leave will result in
non-cumulative churn. In short, 95% of the customers can remain customer and
the other 5% can be that non-cumulative churn of new adds not staying. Also,
it would be useful to note how many phones drop off of family plans and turn
into new plans (i.e. a teenager moves their phone off of the family plan and
gets their own plan). This also would qualify as churn but is really
non-cumulative (and in fact, it is a positive thing).
--
Thomas T. Veldhouse
Key Fingerprint: 2DB9 813F F510 82C2 E1AE 34D0 D69D 1EDC D5EC AED1
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