CURRENT ISSUE

Customer-centric Companies That Get IT

What a world it would be, if the big companies we all use, understood that keeping their existing customers happy was more cost effective then going out and finding new ones.

In the past few weeks my cell phone died, and with it my relationship with Telus Mobility, my provider of roughly 10 years. After these 10 years and many thousands of dollars, I believe I should be entitled to some respect and perhaps a few perks now and then. However, every two years when my contract comes up and I start to evaluate the new packages and phones available, I find out that every new customer in the door is entitled to exactly what I get regardless of how much or how long I have donated to the Telus cause.

Even in business school they teach you the cost of marketing to attract new customers is higher when compared to just keeping your existing ones in the fold. So why is it that companies like Telus just don’t get it. They aren’t alone; I’ve only singled them out due to my current situation.

Aside of the fact that my last 3 phones have died at an unreasonably young age, and that the dealer actually accused me of actions which aided the latest fast death; those are issues I don’t really blame on Telus. Sure indirectly they are selling inferior products with their name on them. Sure a dealer really is a reflection of the company which licensed them to act on their behalf.

However it’s the fact that after 10 years and lots of my money there is nothing in it for me to stay in this relationship. Lots for them, zippo for me! In today’s world of low cost & cut-rate competition and falling profit margins, why would any company overlook the source of their highest profits? Good regular customers will never leave based on price alone providing there are other benefits they receive.

Those benefits are often as simple as loyalty, respect, good service, and those little perks I mentioned previously. By the way, I'm not talking about the cheapo coupons in our cell bills where by the way I pay considerably more then the closest competition.

So here were my choices:

The stay with Telus option:
Although there were options where I could sign various termed contracts to get a new phone, I was still going to have to pay some money for a product and a brand that I didn’t really want. My choices were limited to what Telus was selling, which is pretty limited versus their competition. The best price/phone worked out to me paying $50 + taxes with a termed contract.

The stay with Telus and be insulted option:
Pay $40 to fix my phone as quoted. After explaining to the dealer that my last three phones had died, they wouldn’t even fix my phone for free. This is such a no-brainer, turning a problem into an opportunity. Chances are fixing my phone for free, and giving me a much better loaner phone in the interim would hook me on the newer technology and most likely move me up to a more expensive phone. Other possibilities also exist; this is just the first that comes to mind.

The easy way out option:
Changing providers. I did want to keep the phone number I already have, which is not currently possible at this time when you change providers. Dumb dumb dumb, it's no wonder we need new area codes and numbers are at a premium. .

So for $40-50, Telus lost a good regular customer that was probably overpaying for most of our time together. I would venture to guess that the cost of attracting a new customer is somewhat higher then that amount.

Although I did take the last option, it didn't thrill me for several reasons, with the biggest being that taking the easy way out is just compounding the poor customer service with all of these companies

Len Boyko
Bam, Boom & Kerpow Inc.

If someone at Telus happens to read this article, forward it to management. I'll extend an offer to work under contract to help you folks get IT.

Please don’t think that only big companies have trouble getting this right, many small ones do as well. If BBK can do anything at all to help you with your customer relationships, please contact us. As you can tell it is one of my passions.