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story category Vonage Still Struggling With Customer Defections
Company has to replace 1/3 of their customers each year
(old news - 02:10PM Wednesday Feb 13 2008)
tags: competition · business · VoIP
Vonage boss Jeff Citron has been telling the press that "things are going very well" despite recently being mired in patent lawsuits, the cable industry domination of the VoIP industry, and Vonage continuing to struggle to retain customers. Vonage's fourth quarter earnings results indicate that while sales grew 19.3% to $216.0 million, the company continues to struggle with churn (customer defection), posting a 3% monthly defection rate, up from 2.3% a year ago. At 3%, Vonage has to replace about a third of their customers each year.

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Forums » Vonage Still Struggling With Customer Defections
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Post a:
Network Guy

join:2000-08-25
New York

Maybe odd case

... but Vonage service here is rock solid.

Or perhaps folks leave this particular carrier for the mere $3 in taxes tacked to the bill?

swsamurai
Premium
join:2002-04-17
Bakersfield, CA
clubs:

Re: Maybe odd case

Same here... cannot complain.

My only problem was a cheap router that did not like to pass the information. Bought a new one, bang, in like flint.
RadioDoc
58ef2c0
Premium,ExMod 2000-03
join:2000-05-11
·AT&T Midwest

Re: Maybe odd case

said by swsamurai See Profile :

in like flint.
It's "In like Flynn". The reference is to the romantic and sexual prowess of Errol Flynn. Who, I believe, never had Vonage. Are you suggesting that you and Citron are lovers?

(I'm sorry, that was just too good to leave alone... )

swsamurai
Premium
join:2002-04-17
Bakersfield, CA
clubs:
·Bright House

Re: Maybe odd case

No... I am referring to the 1967 movie, called "In like Flint." One of the earliest Bond parodies.

From that point there were many people using the "In like Flint" phrase in the same manner as in like Flynn.

I am assuming, by your post, that you have never seen the Flint movies.

Jerm

join:2000-04-10
Richland, WA

Re: Maybe odd case

Wow.. BURRNNN!!!! lol

I found both of your guy's posts very informing and entertaining.

swsamurai
Premium
join:2002-04-17
Bakersfield, CA
clubs:

Re: Maybe odd case

No... No burn, just different points of view.
RadioDoc
58ef2c0
Premium,ExMod 2000-03
join:2000-05-11
·AT&T Midwest

Actually, your usage of the phrase corresponds to my post exactly. Nobody would say they are 'in like flint' especially since the phrase originated long before 1967.

But I did not post that to start an argument. Carry on.
--
Toolmaster of La Grange.

supergirl

join:2007-03-20
Pensacola, FL
·Cox VOIP
·Skype
·Cox HSI
·AT&T Southeast
·magicjack.com

said by RadioDoc See Profile :

said by swsamurai See Profile :

in like flint.
It's "In like Flynn". The reference is to the romantic and sexual prowess of Errol Flynn. Who, I believe, never had Vonage. Are you suggesting that you and Citron are lovers?

(I'm sorry, that was just too good to leave alone... )
Citron needs some love. ROFLMAO!
--
Saving the world keeps me busy. However, I find Earth very primitive from my home planet of Krypton.
-Supergirl

Jeffrey
too dark too early
Premium
join:2002-12-24
Dix Hills,NY
clubs:
·Optimum Online
·Verizon FIOS
·Vonage
·magicjack.com

said by Network Guy See Profile :

... but Vonage service here is rock solid.

Or perhaps folks leave this particular carrier for the mere $3 in taxes tacked to the bill?
Same here. Rock solid for almost 4 years now. Can't complain at all.

Just called Australia last weekend - 27 minutes for 27 cents, and the call was perfect. Like I was calling next door.
--
And so castles made of sand, slip into the sea, eventually.

I'm the Dude. So that's what you call me. You know, that or, uh, His Dudeness, or uh, Duder, or El Duderino if you're not into the whole brevity thing.

battleop

join:2005-09-28
00000
They are marketing on being cheap. So at least 1/3 of their customers are looking for something that is cheap. They find something that is cheaper and they jump ship for a better deal.

GOLFnSUN
Enjoy the sun
Premium
join:2002-03-03
Avalon, NJ
·Sprint Mobile Broa..
·Comcast


2 edits

Doing better; but not out of woods yet

Year-End 2007 Results

Revenue for 2007 increased to $828 million
, up 36% from $607 million in 2006. Adjusted loss from operations excluding certain charges(1) narrowed to $46 million from $238 million in 2006. Net loss excluding certain charges(2) in 2007 narrowed to $90 million from $286 million the prior year.

GAAP net loss was $265 million or $1.70 per share in 2007.

Vonage added 356,000 net subscriber lines in 2007 and finished the year with nearly 2.6 million lines in service, 16% above the year-ago level of 2.2 million lines.
Doing better, but they still lost $265 million on revenues of $828 million. And investors won't support that more than 1 more year.
--
Internet News
My BLOG
My Web Page

N10Cities
SILENCE I Keel You
Premium
join:2002-05-07
Roland, OK
clubs:
·Cox HSI
·World Lynx

Re: Doing better; but not out of woods yet

said by GOLFnSUN See Profile :

Year-End 2007 Results

Revenue for 2007 increased to $828 million
, up 36% from $607 million in 2006. Adjusted loss from operations excluding certain charges(1) narrowed to $46 million from $238 million in 2006. Net loss excluding certain charges(2) in 2007 narrowed to $90 million from $286 million the prior year.

GAAP net loss was $265 million or $1.70 per share in 2007.

Vonage added 356,000 net subscriber lines in 2007 and finished the year with nearly 2.6 million lines in service, 16% above the year-ago level of 2.2 million lines.
Doing better, but they still lost $265 million on revenues of $828 million. And investors won't support that more than 1 more year.
Probably most of that loss was paying legal settlements to the ILECs that are trying to drive them out of business..

Dogfather
Premium
join:2007-12-26
Laguna Hills, CA

They were horrible when I had them

Customers fleeing is no surprise to me. How they still have a single customer is amazing to me.

chris
focus
Premium
join:2000-08-13
Middletown, CT
·NETPLEX

Re: They were horrible when I had them

said by Dogfather See Profile :

Customers fleeing is no surprise to me. How they still have a single customer is amazing to me.
As the saying goes - "Your milage may vary"

Horde

@rr.com

said by Dogfather See Profile :

Customers fleeing is no surprise to me. How they still have a single customer is amazing to me.
I've been perfectly happy with my vonage service and I've had them since Oct 2004.

It's nice to have my "home" phone when I go on trips provided there is a broadband connection available.
enichols

join:2004-05-30
Muncie, IN

Initially, Comcast was reluctant to give the bandwidth we were paying for, so when the Net was busy, the quality of Vonage suffered a bit. Once Comcast did their part, everything became excellent and has remained so. We have had Vonage since 2004. We would never change from them.

ANY problems I have heard about Vonage was usually the IP's fault.

dcurrey
Premium
join:2004-06-29

Cost per line

On a per line basis, average direct cost of telephony services fell to $7.11, down from $8.13 in the year ago quarter
Am I reading this right. It cost Vonage $7.11 just to provide phone service to each customer.
zed260

join:2007-09-30
Cleveland, TN

1 edit

Re: Cost per line

yep

its costs at&t even less about 4$

PolarBear
The bear formerly known as aaron8301
Premium
join:2005-01-03
·CableOne

I'm truly sorry, Vonage

I absolutely LOVED my Vonage service. It worked great regardless of my ISP, and I loved all the features. But everyone in my house has a cell phone, so we just didn't need it. Nobody even knew our Vonage number. We basically only used it because it was unlimited, so we saved some on cell minutes. But I figured we could just as easily give the $25 or so to the cell company for a higher rate plan, so minutes aren't an issue.

I loved Vonage, and it was great for a landline, I just don't need a landline anymore. If I ever do, I hope they're still in business.
--
There comes a point in your life when you get tired of fixing everything and wiping everyone's ass. But it’s not giving up. It’s realizing that you don’t need certain people and the bullshit and drama they bring to your life.

mindfrost82

join:2003-04-19
Cortland, IL

Re: I'm truly sorry, Vonage

It was great while I had them too. As with your case, my wife and I both have cell phones and we didn't need a landline. She used Vonage more than her cell phone and only used about 30 minutes a month on her cell phone. We easily dumped Vonage and still stayed under our cell phone minutes.

If I need a landline, I also hope they're still around, I would gladly give them my business again.

JDAC

@insightbb.com

2nd Time's a charm

This may be the kiss of death but in the month I've been using Vonage, it's been outstanding. Free calls to the UK, 5 bucks a month to have a UK number so family can call me... great stuff!

Glad I gave them a second chance as I couldn't get so much as a dial tone 2 years ago.

Rickez
Goinginsane

join:2000-09-02
Three Rivers, MA
·Vonage
·Comcast
·Verizon Online DSL

Re: 2nd Time's a charm

Humm, I am also a repeat customer. I just love the ring all feature. No forwarding to my cell and un forwarding when I get back home. When the vonage number rings, it rings at home and my cell at the same time. That alone is worth the $25 a month.
--
Got a one way ticket, going the wrong way....

mindfrost82

join:2003-04-19
Cortland, IL

Re: 2nd Time's a charm

That must be a new feature, they didn't have that when I had them, but that was over a year ago.

Rickez
Goinginsane

join:2000-09-02
Three Rivers, MA
·Vonage
·Comcast
·Verizon Online DSL

Re: 2nd Time's a charm

Vonages explaination:

What is SimulRing?

SimulRing is an extension of Call Forwarding. The difference is Call Forwarding will ring your Vonage phone first and then forward the call to another line, and SimulRing will ring a Vonage number and up to 5 additional phone numbers in the US (including Puerto Rico) or Canada at the same time.
--
Got a one way ticket, going the wrong way....

tglea

join:2007-08-13
Mexico
·Vonage
·Cox HSI

Re: 2nd Time's a charm

said by Rickez See Profile :

Vonages explaination:

What is SimulRing?

SimulRing is an extension of Call Forwarding. The difference is Call Forwarding will ring your Vonage phone first and then forward the call to another line, and SimulRing will ring a Vonage number and up to 5 additional phone numbers in the US (including Puerto Rico) or Canada at the same time.
You can use simulring with any number in the world. Granted you will pay the international rate if it's not included in the free calling area of Vonage.
slckusr
Premium
join:2003-03-17
Maumee, OH
·Verizon BroadbandA..
·AT&T Midwest
·AT&T Yahoo

said by Rickez See Profile :

Vonages explaination:

What is SimulRing?

SimulRing is an extension of Call Forwarding. The difference is Call Forwarding will ring your Vonage phone first and then forward the call to another line,
this has the same effect

»www.grandcentral.com/
has the same feature

but free
DMS1

join:2005-04-06
Carrollton, TX

Par for the course

I think this rate of churn is going to be a fact of life for now. It seems that many people who use third-party VOIP services love to chop and change between them - often for no real reason.

(For the record, I've had Vonage for over four years with no issues whatsoever.)

UglyDork
Premium
join:2002-01-09
Buffalo, NY
·Vonage

Compared to TW's Phone

Vonage is the better deal.

When I moved into my house, I took Vonage with me. When the TW installer saw my Vonage adapter during the install, he told me how TW's service is better and cheaper.

Not only is TW's more expense, they have less features than Vonage (and it's not like Vonage has allot of features).

TW tries to offset the increase of the VOIP service by bumping you up into a higher internet speed tier which to me is moot as I just use my service for web surfing and VPN'ing.

Bottom line, when looking at the cost of TV/Internet/Phone, my monthly out of pocket expense is lower with Vonage than it would be with TW's phone and that's all I care about. (as long as it works).

linicx
Caveat Emptor
Premium
join:2002-12-03
United State
·CenturyLink

Vonage earned everything they get

When the router/telephony device worked, it worked well. But once it stopped working in the 9th month, I listened to outright lies and bull s*it for four months while I was waiting for my contract to run out, so I could avoid a $200 cancellation .

The cancellation process was a three day runaround - during which time I was I put on hold for 45 minutes before I hung up. The office closed for the night 40 minutes earlier. The manager left the phone bank open! The next day I was on the phone for four hours of non-stop lies and bull s*it before I finally got the employee to cancel the contract.

Vonage has no one to blame except Vonage. It's sad but funny at the same time that Vonage works so hard to entice customers, but three times as hard to lose them.
--
Mac: No windows, No gates, Apple inside

La Luna
Surviving Ashraful
Premium
join:2001-07-12
Warwick, NY
clubs:
·Optimum Online
·Vonage


1 edit

hmmm.....

Not sure who all these people are that are supposedly "defecting". All the people I know that use Vonage, incuding myself for almost 4 years, love it and wouldn't consider switching to another VoIP service (or even worse, back to a POTS line). Too many other VoIP providers are unreliable, and it's not worth it to save $5 a month. "Cheaper" doesn't mean "better". Vonage is rock solid, and thank God, because cell phone service is non existant at my house except for T-Mobile. Cell phone carriers are the ones who seriously need to fix their so called "service" to actually give service that works in their coverage areas. I would never depend on a cell phone only. My son uses T-Mobile, while I, unfortunatately am stuck with crappy, no service Sprint (Nextel and Verizon don't work here either, hence, the reason he went with T-Mobile) until my contract is up. At least we have his cell phone for the extremely rare occasion when the cable goes out. If it wasn't for Vonage, I'd be stuck with outrageous POTS line bills.

Love my Vonage, it's worth every penny.
--
10,544 DEADLY TERROR ATTACKS SINCE 9/11~~TEAM DISCOVERY
Can't feel you anymore, don't need you anymore, don't believe you anymore, I don't need you anymore

devil24
Premium
join:2002-06-28
Houston, TX

A good option...

I've been using Vonage for a few months now and I'm happy with it. It's great as a secondary phone line. Signed up for it taking advantage of a Circuit City offer and so far, so (very) good (hope I'm not jinxing it )

This is my second stint with Vonage. A little more than 3 yrs ago I used the service for 2 or so months and couldn't stand it. The situation now is much better and I'm pleased with the audio quality and the feature set.

I'm paying $14.99 ($20 and some change after fees/taxes) for their Unlimited Residential Plan and I think that is one heck of a deal.
--
STUPIDITY runs rampant these days and it doesn't care about what gender/sexual preference/race/ethnicity/nationality/religion/social status/education level/whatever you are/have/follow

jhacker

join:2001-12-11
Peoria, IL
·Comcast
·Vonage
·Comcast Digital Vo..

Re: A good option...

We've had Vonage since September. There were a lot of growing pains with it. Problems like call features not working, web interface not functioning, stuttering calls, etc. Switching from DSL to cable solved some of the problems with the calls. When there are problems with calls, it's usually during prime time (7-9pm)when there's a lot of internet traffic. But I just try to remember we'd pay Ma Bell a lot more for the same features. Whenever I've had other problems, the customer service has been more than willing to solve them even though they're in another country. What I don't like about Vonage is that they're like everyone else about adding extra charges to the bill. Currently the extra charges are $9.16 on the $24.99 bill. If I dropped Vonage it would be for that reason.

Baryhonah124

@verizon.net

Honest

I don't understand why so many would abandon ship, I've had vonage for 4 years and its been great, no issues what so ever.
It's cheap and it works. WOO HOO WOO HOO HOO! LOL.

scrummie02
Bentley

join:2004-04-16
Arlington, VA

I like Vonage

I've had them for three years and have never looked back. I have a cell phone but Vonage is handy when I call my family in the UK and Canananananananada. It's free and you can't beat that, other services charge. Even with the stupid VOIP taxes this craphole of a state VA charges, it's still cheaper than anyone else.
--
"The democracy will cease to exist when you take away from those who are willing to work and give to those who would not. " - Thomas Jefferson

ld

@comcast.net

vonage sucks in mi

it was lousy when i had it!! my old man had it too.
it would work for 10 min and then quit reset it would work for 3 days and than quit!
you could not get anyone who spoke english at cust. service
and then when i called to cancel they tried to get me to add a second line !! f that
joemaloy

join:2004-12-21
Tonopah, AZ

Re: vonage sucks in mi

Had connection problems at first, had line condition checked and fixed, And have not had a problem sense.
I won't drop Vonage until I don't have a dial tone......
Forums » Vonage Still Struggling With Customer Defections


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