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What's So Great About Being a "New" Customer?
I constantly see commercials for mobile phones or cable service that entice new customers with great discounts and special offers. If I'm already a customer, it makes me mad that only the "new" customers get the good deals. Why should I be treated worse because I'm already a customer? The acquisition frenzy in many of these industries can turn off current customers and make them switch to a competitor.
In today's issue of 1to1 Weekly, an executive at Verizon Wireless talks about how the company focuses on retention and product quality just as much, if not more so, than acquisition. The company banks on the concept of "reliability," and has been rewarded with customer loyalty. What’s your organization’s approach to customer retention?
Elizabeth, you are so right on this. It doesn't make any sense that loyal customers should have to jump through hoops to try and get the "new" customer deals. This is what happens when businesses are all about the short term (did we get enough new customers this quarter) instead of about building long-term relationships. I blogged on this in May, and you may find my take interesting: http://customersrock.wordpress.com/2007/05/18/for-new-customers-only/.
I totally agree that business of all kinds, banks, insurance, dentists, bokers etc all penalize you for being loyal. Your fees should go down for loyality not up as the do today. Business has it backwards.
Mark, Liz,
I know exactly what you mean.
I'm a T-Mobile customer, and a few years ago when I wanted to upgrade my Treo I was shocked that I would have to pay $200 more than a new customer. I felt like I was being punished for being a long-standing customer. So I dug around on its website, found the name of the head of marketing and sent him an email asking whether he would pay $200 to keep his phone number. Within 24 hours I had a new Treo and the new-customer price, and shortly thereafter there was new content on T-Mobile's website explaining why existing customers had to pay more. Not the best solution, I thought.
T-Mobile, however, has since changed, which I discovered last year when I upgraded my Blackberry. Now, under the right circumstances of course (in my case a two-year contract), existing customers can get an upgrade for the new-customer price. A step in the right direction, but I agree that it would be great to have cell phones that work with any provider, so you can purchase them like home phones.
Personally, as much as I love my Blackberry, I'm already pining for an iPhone -- but don't want to have to switch to AT&T to get one...
For once, I'm going to have to disagree with you. I've been a Verizon customer for some time now and while their post-sale customer support is good, their pre-sale at their retail locations is horrible. The fact of the matter is just like any other mobile provider, customers are retained by the 2-year contract rather outstanding service and support. Remember the day when you first purchased a phone and then decided on a carrier and then a variety of plans from a variety of carriers? Sure I paid more for the phone, but it kept the carriers competitive. Plus, your phone would work on any carrier's network.
For example, if I loose or break my phone, I'll be punished by Verizon when buying a new one by paying full retail price. On the other hand, if I'm a new customer, I get a discount on a new phone. Of course, I have to sign contract to get the discounted phone price.
Just thought that I would vent.