Give Discounts To Long Term Customers
This is a perfect example of business model innovation … the design is ingenious, it creatively combines already existing ideas and creates problems for competitors … no wonder, Virgin an all-time creative player is first again …
Found at Techdirt …
[…] too many companies focus solely on new sales, to the point that they ignore existing customers and treat them badly when it comes to customer service.
This is […] incredibly short-sighted in a world where ongoing customer relationships and reputation are important.
[…] the mobile phone business is a perfect example […] All the various cheap deals on new fancy mobile phones are usually only offered to new customers. The old customers have to pay much higher rates. It appears that Virgin Mobile is looking to change this around a bit.
[Virgin] is starting a new program where customers who stay on for more than twelve months get the option to cut their fees or get a new phone.
[…] While other carriers will scoff and some will wonder if Virgin is leaving money on the table, if customers buy into this program of rewarding loyalty, it could change how other operators price some of their offerings.
as The Feature writes:
In the age of mobile number portability, customers are generally offered little financial incentive to stick with their existing carrier, when switching can mean a cheap new handset and/or a better tariff — a perplexing situation for many consumers, who don’t understand why their history of custom is rendered essentially useless.
This is a folly that is likely to be stopped …
Read more at Techdirt and The Feature.
