America On-Line (AOL) Message Board

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Technology Stocks : America On-Line (AOL)

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To: TARADO96 who wrote (36140)	12/29/1999 9:43:00 PM
From: JayPC	Read Replies (1) of 41369

Enough to tell you that AOL adds more subs per quarter than ATHM has in total subs. Churn rate is the rate of current customers leaving AOL's service, not new customers signed up. Churn Rate is the a leading factor in determining customer loyalty. I've been searching everywhere to find AOL's, but so far no luck. Anyone else out there have it? I know the industry average is around 4%. I believe AOL's is higher (implying their customers are less loyal), though I can't find hard numbers yet... While doing this research, I have read from a few analyst saying that AOL's churn rate may be dropping, though they give no hard numbers. I guess the question that every ISP asks itself, is what's easier, signing up new customer or keeping the ones we have. For now, with AOL I think its far easier to sign up new customers. However, I think that AOL's service/product will be reaching maturity in the product life cycle in 2-3 years which means they have to do 2 things. 1. Focus on retention of current customers, because the new customer pool for their current service will shink. 2. Diferentiate(re-invent) their product to reposition itself to an earlier stage in the cycle (ie. broadband apps) Regards Jay

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