ii) Mobile telecoms - subsidised handsets and tariffs With the introduction of Mobile Number Portability, it is a wonder that anyone stays with the same mobile telco for longer than the duration of their contract. From experience I know that a new handset which was being offered to new customers for free would have cost me GBP129 when I wanted to renew my contract (after five years of loyal, if not satisfied, custom). So did I grin and bear it in the hope that one day my loyalty would be recognised and rewarded? I’m sorry, but I didn’t. (actually I’m not sorry). And not only did I get the handset for free, but I also got three months line rental free, so by jumping ship I saved GBP189 versus staying put. Furthermore an acquaintance of mine had been a loyal customer of a mobile telco for 4 years (of which 3 years she was out of contract). After 4 years her handset gave out, not entirely surprisingly. When she asked about her options instead of saying that they would provide her with a low spec handset for free or a high spec handset if she renewed her contract, they said, there was nothing they could do for her unless she committed to another contract. Bear in mind that if she had defected at any point in the last 3 years she would not be in this predicament. So now she is left without a handset to make use of the one months termination period that she has to see out.
Now I see why churn rates are so high, because customers are rewarded for churning and punished for remaininng loyal.
What is needed? A better allocation of marketing spend between acquisition and retention. I don’t expect (and honestly don’t want) christmas presents from my telco to thank me for being a good customer, but I would like to think that I am least being treated as well as any new (or non) customer.
ii) Mobile telecoms - subsidised handsets and tariffs With the introduction of Mobile Number Portability, it is a wonder that anyone stays with the same mobile telco for longer than the duration of their contract. From experience I know that a new handset which was being offered to new customers for free would have cost me GBP129 when I wanted to renew my contract (after five years of loyal, if not satisfied, custom). So did I grin and bear it in the hope that one day my loyalty would be recognised and rewarded? I’m sorry, but I didn’t. (actually I’m not sorry). And not only did I get the handset for free, but I also got three months line rental free, so by jumping ship I saved GBP189 versus staying put. Furthermore an acquaintance of mine had been a loyal customer of a mobile telco for 4 years (of which 3 years she was out of contract). After 4 years her handset gave out, not entirely surprisingly. When she asked about her options instead of saying that they would provide her with a low spec handset for free or a high spec handset if she renewed her contract, they said, there was nothing they could do for her unless she committed to another contract. Bear in mind that if she had defected at any point in the last 3 years she would not be in this predicament. So now she is left without a handset to make use of the one months termination period that she has to see out.
Now I see why churn rates are so high, because customers are rewarded for churning and punished for remaininng loyal.
What is needed? A better allocation of marketing spend between acquisition and retention. I don’t expect (and honestly don’t want) christmas presents from my telco to thank me for being a good customer, but I would like to think that I am least being treated as well as any new (or non) customer.
By offering increasingly attractive recruitment incentives marketers are educating customers to defect.
i) Financial Services - credit card introductory rates „0% interest on balance transfers for 6 months“, you can hardly open a magazine; walk down the street; watch TV; or even answer the phone without seeing/hearing these words. The plethora of FS companies offering credit cards all seem to have adopted this as a base incentive to lure customers, and if your principal KPI is number of card holders then why not? There is now a generation of Britons who every 6 months are looking for a new credit card to move their credit balance to, and there are no shortage of offers. Even to the extent that you can move an interest paying balance from one account to an interest free introductory offer within the same organisation. They are cannabilising their own business! And the barriers to moving balances are very low: „preapproved credit limit“, „one minute approval on-line“ and more overused phrases encourage customers to take up these offers. So what is the benefit of remaining loyal to one card provider? Do I feel that I gain anything from our long term relationship, that my loyalty is rewarded? Does my credit card provider learn about me and distinguish the service it offers me? The answers None, No and No will come up more and more, and the complaint that the undifferentiated service that I am given, has now been superceded by a new introductory offer available to new customers. Now do I feel like a valued customer? Or do I feel like I would rather take the next introductory offer from anyone but my existing provider?
By offering increasingly attractive recruitment incentives marketers are educating customers to defect.
i) Financial Services - credit card introductory rates „0% interest on balance transfers for 6 months“, you can hardly open a magazine; walk down the street; watch TV; or even answer the phone without seeing/hearing these words. The plethora of FS companies offering credit cards all seem to have adopted this as a base incentive to lure customers, and if your principal KPI is number of card holders then why not? There is now a generation of Britons who every 6 months are looking for a new credit card to move their credit balance to, and there are no shortage of offers. Even to the extent that you can move an interest paying balance from one account to an interest free introductory offer within the same organisation. They are cannabilising their own business! And the barriers to moving balances are very low: „preapproved credit limit“, „one minute approval on-line“ and more overused phrases encourage customers to take up these offers. So what is the benefit of remaining loyal to one card provider? Do I feel that I gain anything from our long term relationship, that my loyalty is rewarded? Does my credit card provider learn about me and distinguish the service it offers me? The answers None, No and No will come up more and more, and the complaint that the undifferentiated service that I am given, has now been superceded by a new introductory offer available to new customers. Now do I feel like a valued customer? Or do I feel like I would rather take the next introductory offer from anyone but my existing provider?
Dear Ms Fiona McNab, or MacNab, Château d’Oex, Switzerland – The Bon Accueil – Louis the Chef
These are the key words. Are you Fiona McNab that both my friend Harry Dodson from Massachussetts and I, Denis Allistone, born in Château d’Oex, most keenly remember? Or if you belong to the McNab family, would you know how to reach Fiona McNab, born about in 1954? Fiona was staying as a guest with her family at the Bon Accueil, in Château d’Oex. Both Harry – we lost contact with each other for 40 years but made contact again thanks to google -, and I vowed to see if, thanks to the modern contraptions and mechanisms such as google, we could possibly exchange tidings. I, Denis, am in Bangkok, writing this. Will we succeed in our endeavour (we were 16 then, in those mountains, it must have been in 1967, perhaps.1968)?
With best greetings, and thanks if you can possibly help!
Dear Ms Fiona McNab, or MacNab, Château d’Oex, Switzerland – The Bon Accueil – Louis the Chef
These are the key words. Are you Fiona McNab that both my friend Harry Dodson from Massachussetts and I, Denis Allistone, born in Château d’Oex, most keenly remember? Or if you belong to the McNab family, would you know how to reach Fiona McNab, born about in 1954? Fiona was staying as a guest with her family at the Bon Accueil, in Château d’Oex. Both Harry – we lost contact with each other for 40 years but made contact again thanks to google -, and I vowed to see if, thanks to the modern contraptions and mechanisms such as google, we could possibly exchange tidings. I, Denis, am in Bangkok, writing this. Will we succeed in our endeavour (we were 16 then, in those mountains, it must have been in 1967, perhaps.1968)?
With best greetings, and thanks if you can possibly help!
My answers
ii) Mobile telecoms - subsidised handsets and tariffs
With the introduction of Mobile Number Portability, it is a wonder that anyone stays with the same mobile telco for longer than the duration of their contract. From experience I know that a new handset which was being offered to new customers for free would have cost me GBP129 when I wanted to renew my contract (after five years of loyal, if not satisfied, custom). So did I grin and bear it in the hope that one day my loyalty would be recognised and rewarded? I’m sorry, but I didn’t. (actually I’m not sorry). And not only did I get the handset for free, but I also got three months line rental free, so by jumping ship I saved GBP189 versus staying put.
Furthermore an acquaintance of mine had been a loyal customer of a mobile telco for 4 years (of which 3 years she was out of contract). After 4 years her handset gave out, not entirely surprisingly. When she asked about her options instead of saying that they would provide her with a low spec handset for free or a high spec handset if she renewed her contract, they said, there was nothing they could do for her unless she committed to another contract. Bear in mind that if she had defected at any point in the last 3 years she would not be in this predicament. So now she is left without a handset to make use of the one months termination period that she has to see out.
Now I see why churn rates are so high, because customers are rewarded for churning and punished for remaininng loyal.
What is needed? A better allocation of marketing spend between acquisition and retention. I don’t expect (and honestly don’t want) christmas presents from my telco to thank me for being a good customer, but I would like to think that I am least being treated as well as any new (or non) customer.
ii) Mobile telecoms - subsidised handsets and tariffs
With the introduction of Mobile Number Portability, it is a wonder that anyone stays with the same mobile telco for longer than the duration of their contract. From experience I know that a new handset which was being offered to new customers for free would have cost me GBP129 when I wanted to renew my contract (after five years of loyal, if not satisfied, custom). So did I grin and bear it in the hope that one day my loyalty would be recognised and rewarded? I’m sorry, but I didn’t. (actually I’m not sorry). And not only did I get the handset for free, but I also got three months line rental free, so by jumping ship I saved GBP189 versus staying put.
Furthermore an acquaintance of mine had been a loyal customer of a mobile telco for 4 years (of which 3 years she was out of contract). After 4 years her handset gave out, not entirely surprisingly. When she asked about her options instead of saying that they would provide her with a low spec handset for free or a high spec handset if she renewed her contract, they said, there was nothing they could do for her unless she committed to another contract. Bear in mind that if she had defected at any point in the last 3 years she would not be in this predicament. So now she is left without a handset to make use of the one months termination period that she has to see out.
Now I see why churn rates are so high, because customers are rewarded for churning and punished for remaininng loyal.
What is needed? A better allocation of marketing spend between acquisition and retention. I don’t expect (and honestly don’t want) christmas presents from my telco to thank me for being a good customer, but I would like to think that I am least being treated as well as any new (or non) customer.
By offering increasingly attractive recruitment incentives marketers are educating customers to defect.
i) Financial Services - credit card introductory rates
„0% interest on balance transfers for 6 months“, you can hardly open a magazine; walk down the street; watch TV; or even answer the phone without seeing/hearing these words. The plethora of FS companies offering credit cards all seem to have adopted this as a base incentive to lure customers, and if your principal KPI is number of card holders then why not?
There is now a generation of Britons who every 6 months are looking for a new credit card to move their credit balance to, and there are no shortage of offers. Even to the extent that you can move an interest paying balance from one account to an interest free introductory offer within the same organisation. They are cannabilising their own business!
And the barriers to moving balances are very low: „preapproved credit limit“, „one minute approval on-line“ and more overused phrases encourage customers to take up these offers. So what is the benefit of remaining loyal to one card provider? Do I feel that I gain anything from our long term relationship, that my loyalty is rewarded? Does my credit card provider learn about me and distinguish the service it offers me? The answers None, No and No will come up more and more, and the complaint that the undifferentiated service that I am given, has now been superceded by a new introductory offer available to new customers. Now do I feel like a valued customer? Or do I feel like I would rather take the next introductory offer from anyone but my existing provider?
By offering increasingly attractive recruitment incentives marketers are educating customers to defect.
i) Financial Services - credit card introductory rates
„0% interest on balance transfers for 6 months“, you can hardly open a magazine; walk down the street; watch TV; or even answer the phone without seeing/hearing these words. The plethora of FS companies offering credit cards all seem to have adopted this as a base incentive to lure customers, and if your principal KPI is number of card holders then why not?
There is now a generation of Britons who every 6 months are looking for a new credit card to move their credit balance to, and there are no shortage of offers. Even to the extent that you can move an interest paying balance from one account to an interest free introductory offer within the same organisation. They are cannabilising their own business!
And the barriers to moving balances are very low: „preapproved credit limit“, „one minute approval on-line“ and more overused phrases encourage customers to take up these offers. So what is the benefit of remaining loyal to one card provider? Do I feel that I gain anything from our long term relationship, that my loyalty is rewarded? Does my credit card provider learn about me and distinguish the service it offers me? The answers None, No and No will come up more and more, and the complaint that the undifferentiated service that I am given, has now been superceded by a new introductory offer available to new customers. Now do I feel like a valued customer? Or do I feel like I would rather take the next introductory offer from anyone but my existing provider?
Interested to know!
Interested to know!
Dear Ms Fiona McNab, or MacNab,
Château d’Oex, Switzerland – The Bon Accueil – Louis the Chef
These are the key words. Are you Fiona McNab that both my friend Harry Dodson from Massachussetts and I, Denis Allistone, born in Château d’Oex, most keenly remember? Or if you belong to the McNab family, would you know how to reach Fiona McNab, born about in 1954? Fiona was staying as a guest with her family at the Bon Accueil, in Château d’Oex. Both Harry – we lost contact with each other for 40 years but made contact again thanks to google -, and I vowed to see if, thanks to the modern contraptions and mechanisms such as google, we could possibly exchange tidings. I, Denis, am in Bangkok, writing this. Will we succeed in our endeavour (we were 16 then, in those mountains, it must have been in 1967, perhaps.1968)?
With best greetings, and thanks if you can possibly help!
D. Allistone
Dear Ms Fiona McNab, or MacNab,
Château d’Oex, Switzerland – The Bon Accueil – Louis the Chef
These are the key words. Are you Fiona McNab that both my friend Harry Dodson from Massachussetts and I, Denis Allistone, born in Château d’Oex, most keenly remember? Or if you belong to the McNab family, would you know how to reach Fiona McNab, born about in 1954? Fiona was staying as a guest with her family at the Bon Accueil, in Château d’Oex. Both Harry – we lost contact with each other for 40 years but made contact again thanks to google -, and I vowed to see if, thanks to the modern contraptions and mechanisms such as google, we could possibly exchange tidings. I, Denis, am in Bangkok, writing this. Will we succeed in our endeavour (we were 16 then, in those mountains, it must have been in 1967, perhaps.1968)?
With best greetings, and thanks if you can possibly help!
D. Allistone
Jennifer, thanks for clarifying. I agree with your points! Again, good article.
Eric
Jennifer, thanks for clarifying. I agree with your points! Again, good article.
Eric