Churn, Churn, Churn

Members of the ISP-Outsourcing list discuss methods of satisfying customers so that they don't leave. Find out what ISPs find customers are willing to pay extra for.

[October 15, 2001]

On the ISP-Outsourcing list in October, JB asked,

"What are some of the ideas you folks have on reducing customer churn?"

TR contended that, ultimately, it's all about price:

"Ask a fair price, answer the phone when they call, act like you care when they call, and keep the service reliable. I am afraid, though, that price seems to be the important one to most these days."

Others argued that reliability and good service are the keys to customer loyalty:

[MS observed] "I don't think price is important: it's all about service. We provide service for ISPs with prices ranging from $6.95 per month to $21.95 per month, and I haven't heard anyone saying they are unhappy with the price. They all rave about the service they get and the fact that they would never switch."

[AW agreed] "Value is in the eye of the customer. Price is a factor, but not the most important one. Provided that customers judge the investment good for their business, they will buy more. If customers think they get bad value, they'll vote with their feet."

[MH noted] "For most, price is secondary to reliability. If they can't connect or the speed is sub-par, they're gone. Also, do something to differentiate yourself from your competitors. Why does AOL have so many subs? They make it easy. They provide useful links, info, and third party software. They market their stuff. People will pay the extra bucks for the extra value. If you have to raise your price to make your margins, just do it; cheap ISPs providing cheap service are a dime a dozen. Quality ISPs are rare, and they build quickly on referral and reputation."

[SV added] "Personally, from five years of listening to customers rant and rave about issues they encounter, the top ones are not being able to connect, long wait times for tech support, e-mail problems, and billing issues. If you can do your best on those issues, then your customers will be happy and refer others to you, even if you charge $21 a month or more for service. Reliability is the biggest draw."

—End