Failure to Prevent Customer Churn Costs Web Hosts Dearly

[mandy]

Many Web hosting providers figure customer churn into thier business planning as a necessary result of doing business. They work to reduce churn, but many place that effort behind acquiring new business, looking at growth as a success in that regard...

Web hosts that fail to focus sufficiently on preventing customer churn may be failing to recognize the variety and severity of negative effects that churn can have on a business.

There are two main detrimental effects that customer churn has on a company. The first is that, when it is time to sell the company, the greater the churn, the lower the value of the company. The second detrimental effect is the negative impact churn has on referrals and efforts at up-selling additional products and services...

full article: http://www.thewhir.com/features/042506_C..._Hosts.cfm