Vonage: Churn Baby Churn


Let’s see – Vonage stock dropped 3.25% today – enough to make you wonder when the bad news is going to stop? Not any time soon. If 15 class action lawsuits were not enough, UBS Securities, one of the underwriters of the Vonage IPO, initiated coverage of the company with a “neutral” rating. Which is like saying: almost married, Just need to find a girl!

Read the report and you find that the analysts expect the churn to increase to 2.3% per month in the second quarter from the 2.1% per month reported in the first quarter. They say that things would get better, as company starts focusing on “customer service and continued aging of the base. However, we do not think the stock will move out of its recent range until it becomes clear that this metric is stabilizing.”

Okay call me old fashioned, but when selling services to customers, customer service should be the focus. Even Dell knows that! Lets read this report further: “We expect Vonage to have mixed results in 2Q, including seasonally weak net adds of 240,000 and … (higher customer acquisition) costs of around $258.”

All right I gotta move on :-)


richard lander

Just to prove the Vonage madness is international. Vonage UK is offering a promo of £8 a month including all calls to UK, US, Spain and other countries. As an existing and loyal customer I feel pissed I cannot get this and tell them thus. So they reply

The only way for you to get the free international calls promo is to cancel your current account and sign up for a new one by calling our Sales Department at 0800 008 6000.

to which i reply:

I have to say that this strikes me as absurd and a waste of time. You guys
gain nothing from this suggestion and have to go the expense of sending me a new box. I lose my existing number.

There are many other competitors out there. if i cancel my account why shouldn’t i just move to them as i have to get a new number anyway?

same dumb reply from them. do i smell a rat to get ‘new customer’ numbers up and to hell with churn?


Vonage is the absolute worst! I’ve been trying to cancel their service for days on end…they have placed me on hold for a minimum of 45 minutes EACH TIME, only to then transfer me to another person who can “help me” and AGAIN I’m placed on hold 30-45 minutes. By then, it was 9:00 PM and their customer “service” was closed for the weekend, and I had this all to look forward to AGAIN the next week. They apparently don’t “get it” when it comes to customer service. I must cancel because of a military deployment… however, I regret ever getting this piece of junk. Please, please someone who is able to reach them let them know this is one of the major reasons they’re sinking! Thanks. Oh yes, as I’m sitting here, I’m still on hold… my phone is at 35 minutes now, and still no answer.

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