Vonage's $3.99 Retention Plan

Vonage offers a $3.99 per month retention plan to customers who might jump ship to providers with more certain futures. The plan is meant to shore-up Vonage’s customer churn rate, especially as the internet telephony company struggles to stay alive amidst a patent dispute with Verizon. Vonage’s churn rate last quarter was 2.4%, high enough to spook investors or anyone considering a potential acquisition. A comment left by a self-avowed Vonage flack tries to put a positive spin on the offering:

This promotion is not new and has actually been around for several years now (at least 3 years or so), and it’s usually used, when/where necessary, as a short-term retention promotion. That said, this is by no means something Vonage uses broadly. Less than 1% of Vonage’s total customers are currently in the $3.99 program. Since this is such a small number of Vonage’s overall customers, the plan’s low price point does not significantly impact the company’s financials.

To join the 1% of Vonage customers who pay less than $50 per year for telephone service, call Vonage and threaten to leave for greener pastures. Tell them that the service’s future is uncertain, and that it is just too expensive; don’t hesitate to mention that you would be willing to stay for a reduced rate. If you succeed, let us know by sending your story to tips at consumerist dot com.

Vonage offers $3.99/month to retain customers [VOIP & Gadget Blog via ZDNet and VOIP Watch]
(Photo: Scot (PhotoNoob.net))