For years now, we've been hearing a very old cliche "New customers only" - and for a while this has prevailed with some UK networks occasionally making concessions for existing customers, but generally that customer has had to fight for the same deal the network would offer to a new customer.
Take my latest upgrade. As a loyal customer with Vodafone business, our account is about 11 years old, we have now four handsets connected, with an average monthly spend of £400ish.
I called up Vodafone and chatted about upgrading to a Qtek 1605 (HTC TyTN) and chatted, and was originally quoted £250 to upgrade, with no changes to my airtime contract. I pointed out my usage doesn't really match my airtime, so I'd like to chat. Eventually after about four phone calls, each lasting about 20 minutes, I came out of it with:
£120 Upgrade
500 Minutes
350 Texts on an 18 month contract at £41 per month and 3 months free insurance, which is normally £6.95 per month.
Now - As a new customer, I would have gotten
£100 Handset
500 Minutes
1000 SMS and maybe 3 months free insurance if I'd pushed.
Doesn't make sense does it?
Now, my main point.
I'd like to applaud o2 UK on their new initiative called "Fair Deal" wherein upgrading customers get EXACTLY what a new customer would, free handset, half price line rental, and the same airtime and texts as a new customer!
The other telecoms companies in the UK could learn a lot from this company, who are also promising each member of staff £1,000 if they're ranked number 1 for customer satisfaction this year!
In this day and age of reduced commissions, increased profit and the industry becoming more cut-throat, the other companies need to look in another direction and see that money doesn't lay with giving customers the worst deal, it lays with giving your current customers a reason to stay, as that's where your money has come from the past year, giving a customer a bum-deal isn't likely to help, they'll just churn to another network and get a great deal, and that's a loss for the next 12/18 months for that network until the customer gets bounced away from the new network on an upgrade and comes back, forcing them to shell out more commission on acquastions!
Doesn't make sense!!
UK Telecoms, read this and take notice!
