With the telecommunications industry being totally redefined, the pressure is mounting to retain as well as attract customers. Orange boasts the lowest overall churn rate in the industry at 15.8 per cent per annum, compared with the industry average of 28 per cent. Contract churn is 20.7 per cent and pre-pay churn 8.8 per cent (Orange Press Release, 5 January 2000, www.orange.co.uk). This is in large part due to the company s excellent service ratings. Orange was easily the best all round. It consistently came first, or very near the top, for both the quality of its network and customer service ( Which? magazine, November 1999). But the need to combat churn has become even more critical in the face of heightened competition and the fact that loyal customers are more profitable the longer customers stay with Orange, the more heavily they use their phones. Orange understands that resolving the problem of churn depends on both understanding what motivates customers to leave the market or to switch providers, and on using this knowledge proactively.