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Explain without Over Explaining - 2/10/26


The customer has a question, and we have an answer.  They need to learn something, and we’re in the position to be the educator.  There’s a process they have to go through, and we need them to understand. We know so much, and we could impart so much, but sometimes Read more

Look for a Stop Sign - 2/3/26


As a customer service professional, what you say matters.  The information you’re providing is useful.  The direction you’re giving the other person is helpful.  But... As you’re speaking, you also need to be reading.  Reading the other person.  Watching the customer, determining whether and how they’re receiving what you’re sharing.  Read more

When They Want the Supervisor - 1/27/26


Maybe you did your best with the customer, or maybe the customer didn’t even give you a chance.  They want to talk to your supervisor.  They see you, notice your title does not have “supervisor” or “manager” or “director” or “President and CEO” in it, so they want to Read more

Identify Your Point of Empathy - 1/20/26


I was watching a webinar recently on empathy.  The speaker mentioned that empathy - to a large extent - is something that you are born with.  It’s something that’s very difficult to learn.  And while I agree that some people are predisposed to being empathetic and understanding of others Read more

Pressure is a Privilege, but... - 1/13/26


When athletes are asked about the pressure of a playoff match or a late-game situation, many times they will say that “pressure is a privilege.”  In other words, usually pressure exists because you’re in a match that matters most.  It exists because you are a player put in a Read more

While I’ve Got You on the Phone… - 1/6/26


I’m a big planner.  Whether it’s strategic planning or planning out the year or planning my week first thing on a Monday morning, I like to plan.  I do this because it gets all of my action items documented and ensures that I have some understanding of what I Read more

Pass the Quick Impression Test - 12/30/25


Some studies have shown that people create an impression of you in less than a second when they first meet you face-to-face.  Other studies have shown that that initial impression can take up to 7 seconds.  Regardless, first impressions are quick.  First impressions are not always the lasting impression, Read more

2025 Holiday Poem - 12/23/25


We hear the word change And that change can be good, But we like things to stay same, And sometimes they should.   The weather can be wet And then dry as a bone. We know things will change, Even if all left alone.   Our customers change. Our co-workers do, too. It seems like our resources Are often too few.   The technology Read more

Make the Long Wait Feel Shorter - 12/16/25


When Greg entered the Tax Office, he was thinking only about two things: (1) How he was going to get the tax value on his home reduced, and (2) Whether the wait would be 1 hour or 2.  He checked in with the navigator who asked a few questions, Read more

When Kindness Means More in Customer Service - 12/9/25


Since a large part of the work we do at CSS includes customer research, we have seen tens of thousands of comments over the years about staff, and it is great to hear the positives that customers, fans, and account holders say about our clients’ team members. One word that Read more

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To Improve Customer Retention, Make Products Free?

Posted on April 5, 2012 in Business Advice, World of Customer Service Please leave a comment

To increase its customer retention, Sprint announced that it’s discounting fees on their pay-as-you-go service. In the Fox Business article Sprint Looks to Boost Customer Retention With Lower repaid Bills, it’s noted how Sprint’s new Boost service “is $5 less than the starting price of the brand’s current lowest-priced plans.”

According to the article, “Sprint has had some success drawing customers to its Boost brand through a program that lets users lower their bills by $5 per month following every six on-time payments. Sprint’s prepaid customer rolls grew by 20% last year to 14.8 million, while its contract business shrunk.” In business school, that’s referred to as cannibalizing yourself. But I digress…

The interesting point here is that the company is trying to increase retention with a price drop (and also by pulling customers away from its other products).

Companies who truly understand customer retention strategies understand that a price drop is the absolute LAST thing you should ever have to do. This price drop retention strategy is for companies who have allowed customers to view them as a commodity, and some companies are thereby viewing themselves as commodities.

In virtually any industry, customers will stick with companies for many reasons, not just price. And those other reasons (product quality, wait times, customer service, responsiveness, relationships with the employees, affinity for the company, making customers’ lives easier/better/more hassle free, and on and on and on) provide the value piece that plays into decision-making far more in many customers’ eyes than price.

Before you do your next price drop to increase retention…before you start heading in the direction of free products…before you willingly cut your own profits in an effort to become more prosperous (if that even remotely makes sense), find out the specific factors that drive loyalty for specific customers, and do the best job possible of incorporating those into a 1-to-1 retention strategy.

Avoid the easy and (for the long-term) ineffective path to customer retention – avoid the price drop.

Interested in improving your company’s customer service? See more at our new website! http://www.cssamerica.com/

Read our New Book – “Ask Yourself…Am I GREAT at Customer Service?” http://www.amigreatat.com/

Listen to our latest podcast episode of “Stepping Up Service” on The MESH Network at http://themesh.tv/stepping-up-service/