take care of your existing customers

April 1, 2015

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“What if I drop your monthly rate to the previous level, would that be enough to convince you to stay with us?” This was the offer I got, when I called my internet/TV/phone provider to discontinue my service. Well … it was too late. If I am calling to discontinue the service, I must have had another service lined up. In fact, to ensure my service without interruption, the new service was already connected when I called.

The old service increased my monthly rate by 68%. And, they never thought I will leave … really?? I had already called them earlier, to see if something could be worked out, in reducing my rate. They didn’t want to hear about it. I was, supposedly, transferred to the customer retention department. The phone rang for about 10 minutes, no one answered; as if they don’t answer, I would just go away and forget about leaving.

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Hey, American business, if you don’t take care of your existing customers, they are going elsewhere. This is not an earth shattering revelation! Yet, it always happens. The old service contract is up. It increases my monthly rate. I called to work something out. It never worked, they didn’t want to hear about it. I moved on to another service provider. What kind of business model is this? Is it really cheaper to get new customers than retain existing ones? If you get a new customer, and lose an existing one, what have you gained? They must be teaching some new economics since I went to business school.

It seems to be the case in every business sector. My old credit card gave me 1% cash back. There are hundreds of credit cards out there that give me up to 3% cash back. And, they think I’m going to continue to use the 1% one … really?? If the old credit card had increased my cash back to be on par with others in the market, I would not have bothered to get new ones. So, which is more profitable: make your existing customers happy and continue to have their business, or don’t make them happy and lose their business altogether ? You don’t need an MBA for this calculation.

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3 Responses to “take care of your existing customers”

  1. annalice said

    hahaha this is so true, baba!!

  2. allisence said

    Yea, this makes me quite frustrated as well!

  3. attrace said

    hahaha yeah and it seems like they lose even more money because all those new customers are usually paying some low special one-time-offer/beginner rate!

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