Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from Kevin Liu from B. Riley & Co.
Kevin Liu - B. Riley & Co.
I have a couple of questions on the churn. First, if we exclude some of these customers that were acquired via the USPS and just kind of look at the core customer base was there any sort of discernable trend in terms of how the churn rates progressed through out the quarter? Then I am also wondering as to your retention efforts, are they delivering kind of what you expect in terms of the number of customers who want to churn that you are able to retain?
Kyle Huebner
Yes, Kevin on the first one there wasn’t a tracking mechanism in place during that period of time so it is hard to identify exactly which customers came from that source versus coming to our general Stamps.com website. So, it is hard to give an exact number If you look at it the churn rates were definitely lower than the reported rates. I think the important thing is at this point it has kind of worked itself out and so we expect it to be back in the 3.5% to 4% range.
Ken McBride
On the retention efforts we are continuing to run the retention program. I think the program has kind of reached a steady state and it’s running at full scale now. As you know we are working with customers when they call in to try to understand their motivation for canceling and offering them various ways to remain a customer, more time, potentially a different price point, a different set of features and we do think the program is having positive impact on our churn rates and we are planning to continue it. At this point it is really running steady state and we feel it is kind of more of a permanent program for the company
Kevin Liu - B. Riley & Co.
In terms of the customer acquisitions is it becoming easier at all to acquire customers towards the end of your quarter? Did you see a few more additions there or was it pretty consistent through out the quarter?
Ken McBride
Yes, I think customer acquisition has continued to remain kind of one of the more difficult areas for us in this bad economy. We really kind of saw some of the difficulties with customer acquisitions start last summer and I don’t think we have really seen much change in that even through this quarter.
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