During the telecom meltdown, many companies discovered disconnects were a powerful force. Painful too.
The problem is that they discovered this DURING the meltdown (instead of during the disco revolution.) In many cases, the meltdown had already crippled their business. Only then did they begin to focus on tightening their processes around disconnects; only then did they re-think their incentive schemes. By the time “disconnects” became part of the culture, it was a negative and devastating influence. In many cases, the last surviving memory of the boom-era customers is collapsing revenue.
At this point, you’re probably right–I am being a bit too dramatic. But perhaps not.
The overall theme of the BearOnBusiness.com blog is “what have we learned” as a result of the telecom boom and meltdown. Well, the need to rigorously and thoroughly manage disconnects is a lesson learned that many in our industry have yet to get a grip on.
This is amazing to me. I will repeat. Amazing.
How do I know this is true? See tomorrow’s post.
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Hi Dan,
Long time reader, first time caller. When you talk about the disconnect inferno, is that the same thing providers talk about when they say “churn rates,” or how bad the attrition is?
Thanks, and keep up the great blog!
Michael, thanks for reading. Yes, churn is another word used for disconnects. Attrition is also used in this context.