Customer loyalty, a thing of the past?

[f/1.2]

A couple of months ago it was time to upgrade my phone contract. My current provider at the time was offering the phone I wanted for about £80 per month with the contract that suited me best. As this was a big increase from my existing contract before getting in touch with them i had a quick look online and found that new customers would be paying a bit less. I got in touch with them but they refused to match the new customer price. So after a quick look on Uswitch I was able to find the exact same thing elsewhere for £45 per month. Because of the cost difference I moved to the new provider. Everyday on the lead up to the change over I got calls offering me different options although none as good as the new provider. After I received my new phone my old provider got in touch again and offered to match the new provider if I sent the phone back and cancelled the new provider. At that stage I didn't want the hassle of doing that. I had been with the previous provider for over 15 years, my new provider actually uses my old providers network.

The other day I got an email from my broadband provider to say that as our contract was expiring that our phone/broadband would increase from £45 to £96 per month. It seemed a ridiculous price so I went online and had a look at their current packages and as a new customer I could get twice the broadband speed with them for nearly a third of the price. We haven't used a house phone in years, but every time we asked to cancel it they said it would be more expensive to have broadband only as we got a discount for having both. Anyway I got in touch with them and they refused to match the new customer prices, but did offer to discount to £80 per month. I went on Uswitch again and found that I could get broadband that was 5 times quicker than our existing service for less than half the price of the current provider. So I went through the process of signing up to the new provider. Since then i have had a mountain of emails from our existing provider and they called me yesterday afternoon to offer nearly 4 times the speed we have now for £35 per month. However just as the whole thing was annoying I declined and will continue switching to the new provider which is also £35 per month but they are still faster again. I had been with the previous provider for around 20 years.

I can understand the push to get new customers but it seems crazy to me coming from a B2B sales background were repeat business was everything that customer loyalty means absolutely nothing. With both of these if they had of not raised prices through the roof or had of just gave me the same option that was available to new customers I would not have even looked elsewhere.

Off course have had the same thing with car insurance as well and now just switch providers every year as needed after being with one company for about 18 years.

You would have thought that someone at these companies would have realised that holding on to existing business was just as important as new business but for them it isn't. it really does pay to shop around as they will just rip you off if your an existing customer and its better to just move every time your contract expires. They seem to rely on customers not looking elsewhere even when they make ridiculous increases in price.

Old man rant over.

 

[cambsno]

Some (I think it was BT or EE) promise that new and existing pay the same

 

[lindsay]

Interestingly, when years ago I was doing work for various utilities companies (old electricity companies), it was admitted that it took over a year to make enough profit to cover the cost of taking on a new customer after a change of supplier switch, despite how streamlined a process it is. That's why those companies do usually bend over backwards to retain customers - although I've noted that with so many "second tier suppliers" now (rebadging existing supplier offers), it's hard to tell who is really doing what in the industry.
I think the simple fact is that these days companies are very far removed from customers in the sense of services, with so many elements taken care of by remote Customer Service Agents. The people you deal with couldn't care less, unless they are financially incentivised.

 

[f/1.2]

Some (I think it was BT or EE) promise that new and existing pay the same

EE is who I am switching over too for broadband, I think BT owns E.E now but could be wrong. Previous provider was Virgin Media.

£96 per month with Virgin Media for phone and broadband 362 mbps connection. We haven't even had a phone connected to the line in about 8/9 years. Was £36.99 a month for a new customer. A new customer can also have broadband only 1130 mbps for £29.99 a month with free Netflix. Even the offers for new customers don't make much sense.

£34.99 per month for E.E Broadband with 1600 mbps connection, although goes up by £4 per month in March 2027. There is also a gift card for £150 provided once you sign up, and up to a £300 credit to cover any disconnection fees etc from previous provider.

 

[nog]

We have had a couple of sim only contracts with EE for about 10 years, checked recently and can save £20 + a month switching to 1 pmobile who use …the full EE network with no restrictions or slower connection.
With 1 pmobile we still get 5g when available, get more data allowance, 1 month contract instead of 12 or more month contract and free EU roaming which is chargeable with EE.

 

[f/1.2]

We have had a couple of sim only contracts with EE for about 10 years, checked recently and can save £20 + a month switching to 1 pmobile who use …the full EE network with no restrictions or slower connection.
With 1 pmobile we still get 5g when available, get more data allowance, 1 month contract instead of 12 or more month contract and free EU roaming which is chargeable with EE.

Yeah there is lots of very good offers on sim only deals away from the big boys. I wanted a new phone so went from Three to Ideal Mobile it wasn't a good experience changing, lots of hassle and bad service from Ideal Mobile, but now that it's up and running seems grand, uses Three's network and nearly half the price.

 

[Kevin Allan]

I had a similar experience with Virgin Media broadband and TV. My monthly payments had gone through the roof and I enquired about getting a cheaper deal. Made no progress until I said the magic words "I wish to cancel" and then I got transferred to someone who was authorised to quote massively lower costs. I'm now paying half what I was before the phone call.

 

[f/1.2]

I had a similar experience with Virgin Media broadband and TV. My monthly payments had gone through the roof and I enquired about getting a cheaper deal. Made no progress until I said the magic words "I wish to cancel" and then I got transferred to someone who was authorised to quote massively lower costs. I'm now paying half what I was before the phone call.

Previously when they quoted massive price increases that is exactly what I did as well. However this time retentions would only bring it down to £80 per month which is a complete rip off when a new customer would be paying less than half that. As I mentioned above after setting up the switch over they have contacted several times with various offers but have had enough of them now and will be moving on.

 

[JohnC6]

f/1.2..It's all there in your last sentence

"They seem to rely on customers not looking elsewhere even when they make ridiculous increases in price"

Not a case of 'seem to'....they do. I don't know how they actually work things out but I'd imagine it's like dealing with customers wanting refunds..eg..with banks, some unfair charge being refunded. Refuse them and that gets rid of a certain percentage. Again refuse those who won't accept the first rebuttal...maybe even a third attempt declined . That leaves maybe 10% who aren't going to give up, even worse threaten to go to the ombudsman which companies, especially financial companies, don't want. Easier to accede to their request but do so "as a gesture of good will".

For companies such as those you've dealt with..phones/broadband, the most profitable are those who remain loyal..or,as with so many people, can't be bothered to change. Lindsay has pointed out that......"it took over a year to make enough profit to cover the cost of taking on a new customer after a change of supplier switch."

It's a poor way to run a business .It shows that the company doesn't care about customer satisfaction nor loyalty, they only care about keeping customers and, it seems, at any cost, even if it means losing money or undermining their reputation. This creates a negative impression of the company. Unsurprisingly, it encourages customers to cancel or threaten to cancel in order to get a better deal. All this does is to create a vicious cycle of bargaining and dissatisfaction that leaves customers annoyed, at best, at worst, often angry, disillusioned and creates a lack of trust. What they should be doing is to offer incentives..rewards, if you like, to loyal customers who stay with them for a long time, not just to those who want to leave. Wouldn't it be great if they had a system that identifies how long a customer has been with them and, on a particular renewal, maybe after three years, offer a decrease in premium stating it was..'in recognition of their loyalty"..or "a thank you' ...whatever.

I can't recall the thread, just a day or so ago, and there were accounts posted of great service from garages...in my contribution I posted about a garage I've been with for 20 + years, that told customers they didn't need to renew a tyre yet..contrary to what a dealership had told them, reasonable charges etc...even not charging for very minor jobs. It bulids a loyal customer base and the word gets round, in local cases, but on a natioinal basis good reviews on the likes of Trustpilot and the Which ? magazine tables. Time and time again I read in the business letters page of a newspaper how a reader has been unfairly treated and after banging their head on the wall time and time again. The financial correspondent contacts the company when, lo and behold, the situation is rectified along with an aplogy and the good ole' .."gesture of good will" .I've even read of customers getting a bouquet of flowers.That usually happens when the problem involves the death of a husband/wife..mother/father. It's sorted but nevertheless, bad publicity.

Basically, the culture needs changing.

 

[f/1.2]

What they should be doing is to offer incentives..rewards, if you like, to loyal customers who stay with them for a long time, not just to those who want to leave. Wouldn't it be great if they had a system that identifies how long a customer has been with them and, on a particular renewal, maybe after three years, offer a decrease in premium stating it was..'in recognition of their loyalty"..or "a thank you' ...whatever.

Wouldn't that be great!

 

[Marc]

I was with EE for quite a few years. The last time I tried to upgrade, they wanted silly money and refused to do it any cheaper so I switched to Sky Mobile as they offered me a good deal. A month later, I got a call from EE, asking why I left and I explained why. He wasn't happy with the retention team, saying I should've been offered a competitive deal.

 

[Tringa]

I agree, Tommy. New customers are important but keeping your old ones too is equally important. I suppose for every person who looks elsewhere some will stay so they don't feel the need to reward customer loyalty.

Years ago the renewal for our dog insrance arrived. It was a big increase so we went elsewhere. The old company emailed to say they were disappointed that we had left them and asked if I would tell them why. I suggested they looked at my previous premium and the renewal one and decide if increasing the premium by over 50% had anything to do with me leaving.

Dave

 

[f/1.2]

I was with EE for quite a few years. The last time I tried to upgrade, they wanted silly money and refused to do it any cheaper so I switched to Sky Mobile as they offered me a good deal. A month later, I got a call from EE, asking why I left and I explained why. He wasn't happy with the retention team, saying I should've been offered a competitive deal.

I think its the same with them all to be honest, best bet is seems to be to just to always go somewhere else at the end of your contract.

I agree, Tommy. New customers are important but keeping your old ones too is equally important. I suppose for every person who looks elsewhere some will stay so they don't feel the need to reward customer loyalty.

Years ago the renewal for our dog insrance arrived. It was a big increase so we went elsewhere. The old company emailed to say they were disappointed that we had left them and asked if I would tell them why. I suggested they looked at my previous premium and the renewal one and decide if increasing the premium by over 50% had anything to do with me leaving.

Dave

I am guessing that a lot of people just renew whatever the cost and don't bother to look even when it's a big increase, that extra money they rip those people off for probably more than covers anyone that goes elsewhere. I still can't get over over Virgin wanting me to pay £96 a month for a broadband speed that is under £30 a month everywhere else.

For some reason it really annoys me it feels like shady business practices. I am probably just getting older and grumpier and should just get used to the fact that for these sort of services it's best to just change every time the contract is up.

 

[AndrewFlannigan]

We've been with Zen for decades. We've had the occasional price rise but they've also had price reductions, without our asking for them.

Their service is good as well.

 

[Mr Bump]

loads of deals in the UK oddly not so much in GC lol
all the fibre is telephonica and its 27euros a month for about 20mb but it is rock solid reliable

 

[Tony_M]

The other day I received an email from my broadband provider stating that a price increase would be happening at the end of this month (a huge £2.33 increase per month). Less than an hour later I got another email promoting various offers. I have now doubled my speed and am paying £5 less per month with no increase until next year when a £5 increase will take effect. Love Plusnet

 

[Box Brownie]

The other day I received an email from my broadband provider stating that a price increase would be happening at the end of this month (a huge £2.33 increase per month). Less than an hour later I got another email promoting various offers. I have now doubled my speed and am paying £5 less per month with no increase until next year when a £5 increase will take effect. Love Plusnet

Oooh!
Sounds like you spoke to a good agent on the "options team".. ..our contract expires in May, so I will be having a similar conversation too.
NB even though there are a good number of weeks to go......I too have had an upgrade offer email and it ain't that attractive.

(FWIW we have both BB and landline with them and Plusnet are all geared up to cease landline services! So I will need to look into perhaps a return to BT for the landline.,)

 

[stevewestern]

We've just been through the same thing with bt wanting 3 times the price for a third of the speed so have gone with Vodafone.
6 sims with ee for many years but they are 30% more than 1p mobile.
Finally, after 15 years the AA wanted to increase my breakdown from £168 to £281. We've never had a breakdown.
I've gone with Autoaid for £95 - my car is now 15 years old so this includes the old car excess.
In each case I've endured hours of calls and no one has managed to get close to matching my new providers.

 

[Mr Bump]

Oooh!
Sounds like you spoke to a good agent on the "options team".. ..our contract expires in May, so I will be having a similar conversation too.
NB even though there are a good number of weeks to go......I too have had an upgrade offer email and it ain't that attractive.

(FWIW we have both BB and landline with them and Plusnet are all geared up to cease landline services! So I will need to look into perhaps a return to BT for the landline.,)

do you actually need a landline? i gave up ours must be 20 odd years ago, having one limits your options and just costs you more.

 

[Box Brownie]

do you actually need a landline? i gave up ours must be 20 odd years ago, having one limits your options and just costs you more.

Frankly yes, though our mobile signal is decent indoors and WiFi calling is good when needed.......some folks we phone have less than good mobile signals indoors.
To the point that we may start a mobile to mobile call and have cease it to start again using landline to landline.

Therefore, landline for us still has it's beneficial uses.

 

[Mr Bump]

Frankly yes, though our mobile signal is decent indoors and WiFi calling is good when needed.......some folks we phone have less than good mobile signals indoors.
To the point that we may start a mobile to mobile call and have cease it to start again using landline to landline.

Therefore, landline for us still has it's beneficial uses.

fair, play most of the people i speak to nowadays if at home i just wotsapp calling or an internet based jobbie like teams

 

[woof woof]

Another reason for a landline is when the mobile isn't working. Mrs WW recently went a couple of weeks without a working mobile when changing networks and hitting problems and a while back Lyca mobile had some sort of issue which left me without a working mobile for weeks until I gave up and went to another supplier and even then Lyca caused problems with the changeover which went on for weeks more. Modern tech is great until it isn't. Have to say that Mrs WW's family in Thailand have waaaaay fewer issues than we have had here in the UK. If we don't have problems the land line sits unused and we use mobiles and WhatsApp.

 

[Box Brownie]

Another reason for a landline is when the mobile isn't working. Mrs WW recently went a couple of weeks without a working mobile when changing networks and hitting problems and a while back Lyca mobile had some sort of issue which left me without a working mobile for weeks until I gave up and went to another supplier and even then Lyca caused problems with the changeover which went on for weeks more. Modern tech is great until it isn't. Have to say that Mrs WW's family in Thailand have waaaaay fewer issues than we have had here in the UK. If we don't have problems the land line sits unused and we use mobiles and WhatsApp.

It remains to be seen how things go/pan out with the cessation of Analogue Voice & the rollout of Digital Voice.

I am unsure quite how far DV has gotten to date, i.e. how are those currently on DV getting on with it?